Wenatchee Market

Ok, six months is long enough. I need to take a break from Active rain and the Seattle PI's Seattle Real Estate professionals blogs and get back to basics. For me getting back to basics is in part doing the little things well... and this is one of those things I need to keep up on.

So, in spite of repeated articles saying what a hot market Wenatchee is (was) I have continued to down play the numbers (although qualifying with still some pretty good numbers). The national numbers are generated by using lake Chelan to Leavenworth with all places in between. So reality is we have been seeing increases more in line of 10-15%. not 20-25%. Then August and September came along and we kind of fell flat. Sales down, prices flat to perhaps a slight decline and inventory way up. We are back in a market more like 2004 (which was good). I think that Aug and Sep had some issues that caused the slow down (mortgage scare, continued bubble talk, and even weather). Plus along the line we went from zero inventory of build able lots to around 100. This too has had an effect... namely lots have dropped from 100K to about 90K which will be good for future prices.

So all that said so far October has started to reheat a little. We are seeing buyers emerge again (after looking at 30+ houses), sellers getting more realistic and financing levelling off. I am looking for the rest of the Fall to be good and winter above average. next Spring (say Feb on) will be good. Not great or perhaps even fast paced but good! After all selling a house is not a race.

UP DATE

It has been awhile.... been blogging over on Activerain and have sort of dropped the ball.

Recently Wenatchee appeared as the leading location for growth in Real estate throughout the nation. Take everything with a grain of salt. The numbers, while accurate, do not reflect Wenatchee. rather Wenatchee, Leavenworth, Chelan and points in between. Since Chelan (and to a lesser extent Leavenworth/Lake Wenatchee) is a very, very hot resort community the numbers are tilted. If we could adjust the number for Wenatchee it would come in around 16%...still great but not as great!

Active Market

It's March and the market has started to take off. For those of you interested in Market data I have been frequently blogging on our local market strong and weal points (mostly very strong) over on Active Rain. Historically March is a good month in River City. Old inventory is passe, new inventory is coming out daily and activity picks up as the market seeks it's level for the year.

A good year is ahead (though not up to last year) and with interest rates bumping the high 5's, lots tight we are set to record strong sales. There is a top and we have probably seen it but still good.

Lately Wenatchee has been mentioned twice in publications. One for one of the top markets nationally in 2006 (and the #2 market in 3rd quarter 2006) and another as one of the top five locations (#2 in cities) for business/economic health. I am a bit of a contrarian so I take this all with a grain and am seeking to consolidate customers and risks toward the end of the year but still it looks ok.

Agency

In Washington Real Estate it is permitted for an agent to be a dual agent (represent both the buyer and seller on a transaction). Naturally, it has to be disclosed and both the buyer and seller need to agree to it .

Many if not most agents will act as a dual agent. However, I don't like it and usually won't. I think the potential for liability is too high and certainly the appearance of conflict or actual conflict of interest makes me uncomfortable!

Honestly, how can you negotiate for one party when you know what the other party will do? How can you advise one party fairly if you know the warts on the other side...no, not just warts but concerns and perhaps weakness. Finally, there is the financial end of things too. Assume a $300K transaction and a 6% commission. If I represent one party the commission on the table is 3% or $9,000 ( later to be split with broker). But, if I "represent" both parties the amount is $18,000. In all honesty, how do you keep the tail from wagging the dog? You cannot convince me that if an agent represents both sides the amount on the table does not creep in, at least briefly...

Lets put it another way. Assume your agent confronts you with representing both sides. Ask your self does he/she have my interest at heart? Or evaluate it this way. Assume you are getting a divorce... do you want the same attorney representing both parties? There MAY be circumstances where it might be ok. But as a general rule I think not.

So, my advice is do not accept a dual agency in a real estate purchase or a real estate sale. For people buying homes in Wenatchee, and if they are my clients, I plan on being sure there is fair representation!

OUT WITH THE OLD IN WITH THE NEW

Thinking of listing?

January and February are good times to list (at least in our area). Going back to November; Thanksgiving and Christmas and New Years all take a bite out of the active market. So there is a lot of product that has been on the market for quite awhile. It is shop worn and over exposed. New product coming on now gets more interest and activity just because it is new. Buyers may jump at it just because it is different and a fresh face.

Plus as listings start to increase sellers will find themselves with new invnetory to look at too. A win-win!

Year End

The year is almost history. Residential sales and Residential listings were strong. For this agent Commercial listinigs and Commercial sales were also good. In all a banner year with good prospects for next year too! The Wenatchee real estate Market will remain strong... perhaps not hot, just strong. This next year will find a bigger emphasis on new construction. But all that lies ahead.

For now, thanks for the year and have a Merry Christmas and Happy New Year!

Real Estate information

Just came across (new for me) a very good site that lists the top 25 or so real estate blog comments. Great resource...
www.carnivalofrealestate.com
Try it...