Good morning to you all, this is Jeff with AGENT509. Today. we will be looking at new homes with an investor and as we are doing some research, I thought it would be good to point out some notable things.
1. Lets look at home prices. According to Pacific Appraisal Associates, the median home prices in the Wenatchee Valley are up 8% from 2018, that's $14,871 higher. By definition, the median house price is the midway point of all the houses/units sold at
market price (or sold amount) over a set period (monthly, yearly, quarterly, etc.).
2. Counter that with the rental market. We have talked to several customers who are currenting renting, and in conversation, their monthly rent for their apartment and home has gone up by $100 -$250/month for monthly rent in the past year - that's an
increase of $1200 to $3,000 a year more to rent the same home.
3. On a macro scale, look at the both population migration and economic trend that is occurring. Recently, a study published by WalletHub says Washington state has the #1 economy in the U.S., with Idaho also helping to round out the top ten.
WalletHub compared the 50 states and Washington D.C. across 28 key indicators of economic performance and strength, including GDP growth, startup activity and the share of jobs in high-tech industries. https://www.seattlepi.com/…/WalletHub-Washington-study-jobs…
4. Growth Management - What this is on a napkin is that it artificially puts a limit on the number of lots/homes that can be built and it is very unique amongst the 50 states. By definition, the Washington State Growth Management Act is a Washington state
law that requires state and local governments to manage Washington's growth by identifying and protecting critical areas and natural resource lands, designating urban growth areas, preparing comprehensive plans and implementing them through capital investments
and development regulations. This approach to growth management is unique among states. The act was adopted by the Legislature in 1990.
All of this information is looking above the trees, seeing trends, and allowing all of us, and more importantly, you and possibly your family, to recognize the seriousness of the situation that if home ownership is a goal, realize that as more and
more people move into an area, with limitations in place for the number of new lots that can be developed, you tend to come into supply and demand issues, which over time, increase prices, and Wenatchee is proof of that by rising 8% in the last 12 months
Looking at the national market is not relevant in my view, its hyper local is the best way to look at it.
Thanks for reading and wish you all a good day. All the best!