NCW Real Estate Blog

While some Americans are shunning suburban development, American style suburbs are catching on overseas!  Suburban communities are being built in Latin America, North Africa, South Asia and Eastern Europe that often look much like American suburbs in places like Napa they are modeled after.

As people gain more economic strength in many of these markets, they desire a house, a yard and air conditioning. 

An article in MSN talks about the trend and how architects and planners are finding work overseas.  Here’s an excerpt:

A growing number of architects and urban planners are finding work overseas as the domestic real estate slump persists. An emerging affluent class abroad is drawn to suburbs with U.S. names that mimic the American ideal — down to the master bathroom and tree-lined sidewalk. – MSN

Tags: General Interest, Marketing by Al Lorenz
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I received the Snapshot Report from Pacific Appraisals.  Wenatchee is truly an incredible market.  While other markets have stalled or slowed dramatically this fall, Wenatchee continues steadily albeit it around 30% below last year’s numbers in residential sales.

That probably still feels like a slow market to real estate agents in Wenatchee, but it looks really good compared to markets which have dropped off even more.

Here’s the report!  I should have 2008 sales results for the Chelan market shortly after the first.

Tags: General Interest, Local by Al Lorenz
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In this month’s Building Industry Association of Washington newsletter, Building Insight, an article discusses the impacts on jobs and revenue due to the decrease in construction in the state of Washington.  The newsletter used to be online, where I could link to it, but I can’t find it now.

So, I’ll tell you about it!  Last year in Washington, 47,558 single and multi-family permits were issued.  This year only about 35,000 permits will be issued.  So far thoughout the year, there are 12,536 fewer building permits than it did in 2007.

Each permit for a single family home averages $22,749 in state and local taxes and fees as well as 2.84 jobs per home.  The total jobs and revenue lost by this analysis show -31,489 jobs and -$246,715,860.

The drop in building permits represents more than a decrease in new houses.  It is a drop in income, jobs and tax revenues as well according to the BIAW.

Tags: Construction, General Interest by Al Lorenz
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I’m sure that all depends on your perspective.  An auction like that in a hot market would have drawn hundreds of potential bidders.  On Saturday, there were just under 20 registered bidders.  In a hot market, there would have been lots of active bidding on all of the units.  At this auction, six of the 14 sold for near minimum bids.  There are negotiations continuing on additional homes as well.

I don’t know what the expectations of the developers, banks and auction company were for Saturday’s auction.  I am sure they hoped to have a hundred or more bidders, but realistically I bet they did not expect that to occur.  But, in a market that is virtually stalled, they now have contracts on 9 or more homes of the 14 they have for sale.  They generated trememdous exposure to the project and are likely to get contracts on even more of the homes.

If their expectation was to get some sales happening, they have likely achieved success.  In this market, that is a great accomplishment.  They have identified the pricing that the current market will pay for that property.  If they had realistic goals, they had a successful event.  You can get the Wenatchee World’s perspective on the auction here! 

Tags: Marketing, Uncategorized by Al Lorenz
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A little bit of totally non-real estate stuff today for a snowy day.  Just below is a thought provoking link called Did You Know 3.0.

Tags: General Interest by Al Lorenz
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In King, Snohomish and Pierce counties, residential sales volumes and values were down in November compared to one year ago.  Based on data compiled from the Northwest Multiple Listing Service, King County had 1,145 closed sales of residential homes and condos in November of 08 versus 2,187 in November of 07 which is a 48% decline.  Snohomish County had 383 in November of 08 versus 835 in November of 07 for a 44.2% decline.  Pierce County closed 463 sales in November of 08 versus 784 in November of 07 for a 41% decline in sales volume.

Median prices also declined.  King County was down 5.44%  from last November to a median price of $365,000 for residential homes and condos.  Snohomish County declined 7.46% to a median price of $310,000 versus November of 07.  Pierce County dropped 12.53% to a median price of $230,000.

Single family residences, excluding condos, show the median price in November of 2008 in King County at $395,000 a drop of 9.2% versus one year ago.  Snohomish and Pierce counties dropped 11.07% and 13.21%respectively.

While the Puget Sound area is still doing well compared to the rest of the country, we are continuing to see degradation in that market.  With many of the real estate customers for the Chelan Valley and North Central Washington originating on that side of the mountains, I would expect to continue to see weakness in our local markets.

Tags: General Interest, Marketing, Northwest by Al Lorenz
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I’ve posted in the past about the trends in Real Estate Advertising.  The market downturn has real estate agents scrutinizing their advertising budget like never before.  Here is a chart and article about what areas marketers are focusing when they decide how to spend their advertising dollars.  Much of the pain being felt by print media and radio/television becomes clear from these trends.

Tags: General Interest, Marketing by Al Lorenz
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There are a couple of notable things regarding real estate auctions.  One is an upcoming auction on December 13th of 14 condominium units in Leavenworth by James G Murphy Auctioneers.  The auction is being held subject to disclosed minimum bids.  The minimums start at $180,000 and range up to $365,000.  The minimums look to be 51% to 58% of what is called “original price.”  If none of the units are sold, the building will also be offered in its entirety. 

I have been in this property and the condominiums are very nice, with premium finishes.  Those prices get my attention as being potentially attractive to start bidding.  However, maybe one of our Leavenworth readers will comment on the potential value of the units.  When I toured the property, the association did not allow nightly rentals.  However, the description of the “Builder’s Story” does state potential rental income, so that might have changed.

The other story is how auctions are being used, beyond foreclosures, in this market.  A posting from the Real Estate Bloggers tells the story of a Florida condominium developer who is using auctions to determine market value in a stalled market.  It will be interesting to see how the Leavenworth Auction works out.  Recent auctions in North Central Washington have had mixed results.  Sellers have to be willing to offer an attractive minimum to get bidders.

Tags: Local, Marketing by Al Lorenz
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