Cascade Mountains at Wenatchee Washington
Click image to enlargeNot sure how I missed it, but last night I discovered the March 12, 2008 edition of the NuWire Investor publication named Wenatchee in the "Top 10 Places To Buy Vacation Rental Homes in the U.S".  


Wenatchee came in number three, but looking at the criteria for which they were chosen, it appears Wenatchee could have very easily topped the list.   Factors taken into consideration were home prices and appreciation rates but, I think, more importantly (for a vacation home or vacation rental home) such things as weather and the availability of activities and attractions are critical. 



In the weather category, it was interesting to note they used an "average number of rainy days" factor (not a number of sunny days factor).  Either way, Wenatchee would have won hands down over all the markets listed.   Wenatchee was noted as having an average of 26 rainy days per year and the nearest competitor was the Virgin Islands at 73 rainy days!   


In the median home price category, I found the NuWire information inaccurate.  Wenatchee's median home price was listed at $319,900 but it is actually $248,500 according to the March 2008 Pacific Appraisal SNAPSHOT statistical market summary.  NuWire lists their source as Zillow which is basically a computerized statistical analysis and not based soley on actual sales records.  This is a significant discrepancy. 



Here are the top ten markets for buying a vacation rental, according to NuWire Investor:

1) Ashland, Oregon

2) Grand Junction, Colorado

3) Wenatchee, Washington

4) Guam (U.S. Territory)

5) Asheville, North Carolina

6) Miami, Florida

7) U.S. Virgin Islands (U.S. Territory)

8) Salem, Oregon

9) Salt Lake City, Utah

10) Coeur d'Alene, Idaho



If you get a minute, you can read the entire NuWire article.  Interesting to note that 4 of the top 10 are in the Northwest region of the United States.



All things considered, I anticipate Wenatchee WILL be a hot spot for future vacation rentals as a wonderful alternative to the typical motel room.  I've been touting this option on my Wenatchee Condo blog for quite a while now.


Because of our great weather (and central location in the state) there is almost always some convention or combination of meetings going on in Wenatchee.   With all the demand for motel/hotel rooms due to these meetings (and the plethora of recreational activities in the area), I see a huge demand for vacation rentals in the Wenatchee real estate market. 


At this time, there are many vacation rentals in the outlying areas like Leavenworth, Lake Chelan and Crescent Bar, but almost NONE in Wenatchee.   I do represent the one project in Wenatchee currently being promoted for that purpose.  So, if you want to get in early, now may be the time.  


We often get inquiries from potential renters looking for a more versatile option to the typical motel accommodations.  These tenants are looking for accommodations from a few nights to several weeks at a time.  And, they are willing to pay significantly more than a standard monthly rental apartment because short term rentals (less than 6 months) are extremely hard to find.



If you missed the last big increase in home values, vacation rentals may be the next niche to consider.



Have a great week-end!













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River Street Condo In CashmereI'm getting tired of hearing that there isn't any affordable housing left in Wenatchee.  Prices for single family homes have risen dramatically the last few years leaving he dream of homeownership just a dream in some people minds.  NOT! 


On my condo blog, I talk about condos as an excellent, quality living, option to homeownership.  sure, it's not the dream house with a yard, but it can be a first step.   As I stated in the comments of one of my AR blog articles:
"I think our main challenge at this time is to get first time home buyers to seriously consider condos as their first step to home ownership.  The dream of a single family home on a lot, with a fence for the dog and kids, is a worthy goal but not necessarily realistic for the first step.  Few of us could afford our dream car for our first car.  I bought a used Ford Falcon for heavens sake.  Who would want to be seen in one of those?  But, it was transportation, and got me to work so I could earn money to buy my dream car... the 1973 Ford Mustang Mach I.  Now that was a car!

Why should a home be any different?  We have to start somewhere.  A condo is a good, affordable, quality living, option to start".   



There are nice one bedroom condos available for under $100K.  Nice two bedrooms condos can be found at around $139,900.  It's an option to seriously consider... or you could just pay your landlord's mortgage for the rest of your life. 


  Read the complete affordable housing article.  


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If you're curious about overall market activity in the Wenatchee and East Wenatchee market areas, here is some information for you.  This information is for Wenatchee and East Wenatchee only.  It does include Malaga in Chelan County and Rock Island in Douglas County, but not Cashmere, Leavenworth or Waterville.


Single family homes:
  Currently for sale  420
  Sold last 30 days    62
  Percent of inventory sold last 30 days  15%


Manufactured and Mobile Homes
  Currently for sale  41
  Sold last 30 days  12
  Percent of inventory sold last 30 days  30%


Condos
  Currentlyfor sale  62
  Sold last 30 days   3
  Percent of inventory old last 30 days  4%


What do these numbers tell us?  Statistics can be deceiving and you kind of need to be "in" the market on a daily basis to fully understand what is happening. 


Overall, closed sales for the last 30 days were about 14% of the total inventory.  


Manufactured and mobile homes led the way at 30% and, I suspect, this is because they fall in the "affordable" category. 


Condos (at 4%) are not selling as briskly as they should for the inventory available. Many home shoppers still want the American dream of a home and land... but reality may set in and the acceptance of condos as a first home may increase.  There are several under construction condos Pending, and most of these are to the retired and baby boom sector (not first time home buyers).  These do not fall into the "affordable" housing category that I think of for first time home buyers. 


Single family homes (at 15%) are right at the market average rate of sales.  What these statistics don't show you is the acitivity level per price range.  That can be fodder for another post but I can tell you homes priced at over $300,000 are selling at a much slower pace than those in the lower price ranges.  Overall, mobiles and manufactured housing is bringing the average up and the condos bringing it back down. 


For the purpose of explanation, I define the difference between "mobiles" and "manufactured" housing as follows:  "Mobiles" are manufactured homes on leased land.  "Manufactured" homes are manufactured homes that include land with the sale.   Not all agents categorize these as I do so it is difficult to get accurate individual statistics for mobiles and manufactureds without reviewing every single listing. 


All that being said, and considering the gloom and doom reported in the national media, our market seems fairly healthy... in spite of the seasonal slowdown, tigtening of financing and other factors.


With the strength and diversity of our local economy, I anticipate somewhat slow activity during the winter and another surge in the Spring.  Because of this, between now and late winter will be a great time to buy as motivated sellers reduce prices to compete with other inventory and to sell as quickly as possible. 



For a personalized consultation, specifically relating to your real estate needs contact the TOP Team:

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On my Active Rain blog, I had a commenter (agent from Western Washington) asked me the following question:


Question: 
Is your appreciation in Wenatchee going to hit 30% this year?  What about this bad market????


Answer:
The "bad" market?  I had three closings last month and will have two closings this coming week, have one more pending.... and am working with several buyers.  Good thing the market is bad because  I'd go crazy if  it were any better.  LOL. 


Actually the market has slowed for a variety of reasons that you already know.  1) Wintertime slowdown 2) Media scare tactics,  3) Financing crisis,  4) and one other which is somewhat unique to our area and that is...


We have many buyers who want to (and will) buy here but they have property to sell elsewhere (California, Arizona maybe even Western Washington) but they can't buy until they sell.  Many of the markets across the country are experiencing true slow downs so properties are not selling.  Therefore, in my opinion, what we are seeing is a temporary slowdown with pent-up demand building locally.   Come Spring, we could see another surge with appreciation starting again.


However, I don't think we are going to see appreciation rates at the same levels of the last couple years (25% per year).  I think (and hope) it will be more like 10% - 15% .  Just a guess, of course.  If I actually could predict stuff like that I wouldn't be a real estate agent in Wenatchee.   I'd run for President and fix a lot of problems.  LOL.


At this moment in time, we are seeing a stabilization in prices which is a much needed and welcome breather from the frenzy.  





TopTeamCarol@gmail.com

Our investor properties are new, newer, or fully remodeledQuestion:  What are average rents for the bread-and-butter 3/2 new or newer SFH?


Answer: "Bread and butter" SFH's (single family homes) are mostly renting for $1150 - $1300. For our investor clients, we prefer not to sell and manage "bread and butter" SFH  ramblers, but those that offer special amenities to attract renters... and offer excellent appreciation,  and resale potential.  I currently have a 3 bed, 2 bath home rented for $1450, which is considerably more than the "bread and butter" variety.
 

We also like to find 4 bedroom homes, homes with a shop, large yard, desireable school district, popular location, etc. There are lots of B&B SFHs and we try to avoid those. Our investor houses (same price range) mostly rent for $1400 - $1450.  We get a little more for pets, or offer a discount for renters without pets.   


In summary, we search for and recommend properties that are in high demand by renters, do not have maintenance issues and will appreciate equal to or greater than the market average.



Carol Williams

TopTeamCarol@gmail.com

One of our current Wenatchee rental housesI work with a lot of investors and constantly get inquiries about what is happening with real estate in North Central Washington.   One recent investor prospect had a very long list of questions, so thought I'd share some of these with you.  I'm going to break them down in parts for easier reading:

Question: What  is the SFH (single family housing) rental vacancy rate in Wenatchee?


Answer:  Last year at this time it was 5%.  This September's report from Pacific Appraisal Associates indicates current SFH vacancy rates  at 2%... computing to a 60% reduction in vacancy rates.  Vacancy rates on apartments are about 4%.  This aligns with my own experience in renting SFH.  Demand is extremely high! 



* * * * *
If you have a specific question you would like answered, e-mail me direct or leave a comment at the bottom of this blog post: 

Carol Williams
TopTeamCarol@gmail.com

Wenatchee, WA:  Still the #1 rated appreciating market in the U.S.I work with a lot of investors.  Used to be they could buy an investment property with 5% down.  That disappeared recently.  10% is the current minimum.  Rumor is that within 90 days (or less) the minimum down will be increased to 20%.  This is going to seriously affect your ROI. 

To most effectively leverage your money, I recommend you step up and identify a property now before the upfront investment requirements change. 


The OFHEO continues to rate Wenatchee as the #1 appreciating market in the nation.  Wenatchee real estate is still a great investment.  Contact me today for my current predictions and recommendations.  TopTeamCarol@gmail.com

Have a great week-end,








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Flying over WenatcheeIronically, one day after my "bullish" post on Wenatchee, the local newspaper (The Wenatchee World) came out with an article confirming my opinion.  Even though the market has slowed some, which is not necessarily a bad thing, our appreciation factor is still high AND we are leading the nation! 


As I said, the economic climate is so healthy and our lifestyle appeal so strong, the market will stay vibrant.  


I am still convinced, the current "slowdown" is mainly a result of the lending correction going on.  This will get resolved and we can get back to a more normal selling atmosphere.   There is also a factor of prices having risen so much that a percentage of people can not afford to buy.  For investors this relates to a continued strong demand for rental housing... but that's a subject for a post another time.


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Have a great week-end!

As the real estate market softens and declines in other parts of the country, I remain extremely bullish on the Wenatchee real estate market.  We ARE seeing some signs of sanity returning to the market, but this may be just temporary as the lending industry pulls it's head back above water.


In my humble opinion, the general economic climate in the Wenatchee area has never been better and there is no reason to believe demand and prices won't continue to go up as our population increases.  Recent projections indicate our population will increase by about 50% over the next 20 years.


For customized service contact the TOP Team today:

Carol Williams, Team Leader  TopTeamCarol@gmail.com
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I received the following question via e-mail yesterday from a prospective investor client:
Question:
Can you tell me what the local buzz is as far as the local economy & home appreciation?  I have the hard census data and I have read your blog posts.  I'm looking for what people are excited about these days in Wenatchee?



Carol's Answer:

The local buzz?  The riverfront development is high on the buzz scale.  
   The Columbia River and inexpensive hydro power is really what is driving our economy these days.   
   The hydro power is far reaching in it's effect on the economy... from residential to agricultural, commercial and industrial.   
    We have baby boomers flocking here with their retirement checks, seeking our 300 days of sunshine

Notice:  We are now offering Wentchee Property Management Services. 
Contact the TOP Team today:
Carol Williams  TopTeamCarol@gmail.com
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It's not actually month end, but I took a few minutes to put some Wenatchee real estate market activity info together.  On my Active Rain blog, I have posted two Market Activity Summary Reports and a Hot Sheet from this week.  Head on over to my Active Rain blog and check them out.  


Leave a comment, feedback or additional questions and I'll get back to you.



Have a great week-end,

Carol



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In a recent article out of the Associated Press, the Wenatchee housing market was mentioned.  While many markets across the nation suffer a slump, Wenatchee continues to enjoy healthy real estate activity.


I was a quite disappointed in one of the statements about Wenatchee in the article.  Perhaps the agent was misquoted.  Following is an excerpt from the article:

Bob Seltzer, a local real estate agent, said the boom there is being fueled by an influx of retirees from rain-plagued Seattle who are looking for warmer weather.

“The economy here does not support high-paying jobs,” said Seltzer. But “people can come from Seattle and buy an equivalent house for half the price.”


I am hoping this agent was misquoted because it is misleading about the strength of the Wenatchee job market.  As with any region, we do have our share of minimum wage jobs, mid range wage jobs, BUT we are also blessed to have a wide spectrum of high paying jobs in in a wide range of industries, including:
   * Aluminum production
   * Hydroelectric Power Production
   * Medical Services
   * Agricultural Management positions
   * Local, State & Federal Government


Wenatchee and North Central Washington has a strong and diverse economy.  And, we certainly have more than retirees from "rain plaqued Seattle" fueling demand for our housing here.



* * * *

For customized service call the TOP Team:

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