It’s Real Estate Season in Yakima!

Apr30
2013

Written by Cory

A strong March in the Yakima Area Real Estate Market has opened the door for the 2013 spring real estate season.

Only three months into the year, 2013 home sales have significantly outperformed sales in 2012. The total number of homes sold in the Yakima area has increased by 19% year to date when compared to last year. While the total inventory of homes for sale is slightly lower than last year, the total number of new listings has increased by 7.5% this year. Even more impressive, the average days on market has dropped to 147 days, down fom 158 in 2012. The median days on market has dropped even more from 131 to 119 days. The days on market is established by considering the amount of time it took from the most recent listing date to the date the transaction closes for all homes that have sold.

In the month of March, the Yakima Area Real Estate Market recorded 120 total homes sold with and median sales price of $159,450.

When compared to February, the median sales price increased nearly 9 percent. When compared to 2012 year to date, the median sales price has increased 5.22% in 2013. The average home sales price has increased 4.18%.

2013 Market Summary PDF

To view more statistics pertaining to the Yakima Real Estate Market, click the link below or visit my blog (mobile friendly) at www.yakrealestate.com

Your Local Real Estate Professional,

Cory Bemis

Posted in Monthly Newsletters, Yakima Residential Sales Statistics

Yakima housing trends and sales figures for 2013

Mar27
2013

Written by Cory

February housing sales figures show steady home values and consistent sales.

The total inventory of homes for sale in Yakima is currently at it’s lowest level in more than 6 years. Year to date, there have been 1,089 homes for sale in the Yakima area market. This is 7.9% fewer homes than the same time last year. Considering these figures, coupled with the fact that there have been 3.3% more homes sold this year (155), it’s apparent that the local Yakima area market is steadily continuing to improve.

Throughout the past few weeks, more and more buyers are beginning to enter the market. While mortgage lending institutions continue to hold tight with their stringent lending requirements, more potential home owners are actively controlling their current credit and finances with the goal of being able to qualify for a home loan.

In the month of February, the Yakima Area Real Estate Market recorded 72 total homes sold with and median sales price of $146,125.

When compared to January, the median sales price dropped less than one percent. When compared to 2012 year to date, the median sales price is also down nearly one percent.

2013 Market Summary PDF

To view more statistics pertaining to the Yakima Real Estate Market, click the link below or visit my blog (mobile friendly) at www.yakrealestate.com

Your Local Real Estate Professional,
Cory Bemis

Posted in Info, Monthly Newsletters

Two signs that prove the Yakima Housing Market is rapidly improving – February Newsletter

Feb19
2013

Written by Cory

For the past 30 years, the indications were black and white. As the stock market improved, the mortgage interest rates declined. When the stock market would dip, the mortgage interest rates would spike. (You can find a great chart showing this correlation at: http://www.crystalbull.com/stock-market-timing/Thirty-Year-Mortgage-chart/) However, many recent studies are showing that this trend won’t continue because the Federal Reserve had intervened so extensively with the market.

This correlation is one example of why it is becoming more and more difficult to predict the real estate market. Many investors, domestic and foreign, have begun to shift their funds into real estate. The Phoenix market, for example, has experienced significant increases in home values over the past year primarily due to outside investors purchasing real estate at a fraction of what it was valued at merely five years ago.

Increasing home values are one indicator of an improving market. Here are two signs that prove the Yakima market is improving:

One: The absorption rate has decreased to 6.87 months. This figure was greater than 9 months for half of 2012, and higher than that in 2011. The absorption rate is simply the amount of inventory that is currently on the market (homes for sale) compared to the monthly average number of sales over the past 12 months. A good indicator of a balanced market in Yakima is an absorption rate of 5.5 to 6 months.

Two: The average number of days that a home spends on the market (D.O.M.) has averaged 136 days for the past 8 months. In the 8 months prior to that, the average D.O.M. was 152 days. This means homes have been selling more than two weeks faster over the past 8 months. A good indicator of a balanced market in Yakima is a D.O.M. between 115 and 120 days.

In the month of January, the Yakima Area Real Estate Market recorded 83 total homes sold with a median sales price of $147,500. See how this compares to January of 2012 by viewing the Market Summary below.

Yakima Area Residential Market Summary for January, 2013 – Click Here

To view more statistics pertaining to the Yakima Real Estate Market, click the link below or visit my blog (mobile friendly) at www.yakrealestate.com

Your Local Real Estate Professional,
Cory Bemis

Posted in Monthly Newsletters, Yakima Residential Sales Statistics

How did 2012 stack up? – January Newsletter

Jan08
2013

Written by Cory

What happened to all of the foreclosures and short sales?

In Yakima County, foreclosures made up nearly 14% of all residential real estate sales in 2012. That number is very similar to the prior two years. Short sales made up just under 4.5% of all residential sales in Yakima County in 2012, which is also very similar to 2011 statistics. It seems the national media has become conditioned to the fact that foreclosures are going to be part of the real estate market for the next few years. While the national reports of foreclosures and short sales have essentially fallen off, the statistics remain steady with signs of improvement. Early reports show that foreclosures were down more than 30% nationally in 2012 when compared to the prior 3 years. Currently in the Yakima Market 5.5% of all homes listed for sale are foreclosed homes, while 8% of the homes listed are potential short sales. The number of short sales on the market has increased significantly over the past year. However, one in twenty listings being foreclosure sales is a slight improvement over recent years.

In the month of December, the Yakima Area Real Estate Market recorded 87 total homes sold with and average sales price of $167,109.

The total number of homes sold this December was more than 5% higher than the previous two years. The average sales price this December was slightly lower than 2011 and 2009, and 6.8% higher than 2010.

2012 IN REVIEW:

Steady growth and improvement would best describe the Yakima Valley Real Estate Market in 2012. The total number of homes sold in 2012 increased by 5.5% compared to 2011. The average sales price also increased by 8.2% to $176,663, which is also 3.6% higher than Yakima’s peak year of 2006. While 2012 was a significant improvement across the board when compared to 2011, the total sales volume was still less than every year from 2003 through 2010. In 2002 there were nearly 300 more homes sold than in 2012, however the average sales price was only $122,371. Yakima homeowners should be happy that the home values have remained strong, even though the total number of homes sold has declined by more than 35% compared to 2006. The majority of other areas in the United States have not enjoyed the same strong housing statistics as the ever “growing” Yakima Valley. This valley truly is a pleasantly unique area of the world to live.

Click here to view monthly statistics chart.

Your Local Real Estate Professional,
Cory Bemis

To view more statistics pertaining to the Yakima Real Estate Market, click the link below or visit my blog (mobile friendly) at www.yakrealtor.com

Posted in Monthly Newsletters, Yakima Residential Sales Statistics

Interview with KNDO – How will the Fiscal Cliff potentially impact Yakima Real Estate?

Dec31
2012

Written by Cory

NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Posted in Uncategorized

Yakima Market Update – November 2012

Nov10
2012

Written by Cory

28 month high for residential sales volume in Yakima

This October, the total volume of homes sold (sum of the purchase price for all homes sold) in the Yakima Area Real Estate Market was the highest it has been for any month dating back to June of 2010. At the time, June of 2010 was the last month to purchase a home and qualify for the $8,000 home buyer tax credit.

With each month that passes in 2012, the Yakima market continues to grow. Home values have held strong, while the number of sales continues to increase. The length of time a home spends on the market before it sells (D.O.M.) is beginning to decrease. This is a direct result of more homes being sold and less homes being for sale. As we enter into the winter months, the total number of sales generally declines by about 30% in the Yakima market. The amount of homes for sale also tend to decrease in the winter, but not as significantly as the total sales. Barring any immediate change in government policy with regard to real estate or home loans, expect another dip in sales this winter.

In the month of October, the Yakima Area Real Estate Market recorded 129 total homes sold with and average sales price of $189,024. The total number of homes sold this October was the second highest for any month in the past two years. The average sales price last month rose to the same level as experienced in the summer months of 2012. The average home sales price (year to date) in 2012 remains nearly 5% higher than it was in Yakima’s peak year of 2007. However, the total volume of residential real estate sold in Yakima remains down nearly 30% when compared to 2007.

Click here to view monthly statistics chart.

Your Local Real Estate Professional,
Cory Bemis

Posted in Monthly Newsletters, Uncategorized, Yakima Residential Sales Statistics

Yakima MLS Residential Sales Statistics 2012

Nov05
2012

Written by Cory

Yakima Residential Monthly Sales Statistics 2008-2012

Click the link to view a .pdf spreadsheet

Posted in Yakima Residential Sales Statistics

2012 sold homes show an 8% increase in Yakima area home values.

Oct15
2012

Written by Cory

Year to date, through the end of September, the average home sales price for sold homes in the Yakima area is $174,847 (according to sales data compiled from the Yakima MLS). Believe it or not, this is the highest average the Yakima area has ever experienced through the end of September. This is an 8% increase when compared to sales in 2011.

At this point in 2011, the average home sales price was $161,736, which was the lowest since 2006. Even more impressive, this is the first year that the average sales price has surpassed the peak year of 2007. In fact, this year the average is 3.2% higher than it was in 2007. This is one major indicator that shows the Yakima market is beginning to grow.

Although the average sales price appears to be recovered, the total number of homes sold is still down from 2007 by 36%. However, the market is experiencing improvement as the total homes sold in 2012 has increased 6.2% since 2011. As long as home values continue to remain stable, we should see steady growth in sales as the economy begins to grow as well.

In the month of September, the Yakima Area Real Estate Market recorded 97 total homes sold with and average sales price of $177,560. The total number of homes sold this September was down 8% when compared to the past two years. Year to date, 2012 total homes sold in Yakima remain up 6.34% when compared to last year. The average sales price of $177,560 is the highest average sales price for any September in the history of the Yakima market.

Your Local Real Estate Professional,
Cory Bemis

Posted in Monthly Newsletters

3.8% Tax: What’s True, What’s Not

Oct11
2012

Written by Cory

Rumors about the 3.8% Medicare tax continue to circulate. Here’s the definitive word on what’s true and what’s not on how the tax impacts real estate.

October 2012 | By Robert Freedman

Ever since health care reform was enacted into law more than two years ago, rumors have been circulating on the Internet and in e-mails that the law contains a 3.8 percent tax on real estate. NAR quickly released material to show that the tax doesn’t target real estate and will in fact affect very few home sales, because it’s a tax that will only affect high-income households that realize a substantial gain on an asset sale, including on a home sale, once other factors are taken into account. Maybe 2-3 percent of home sellers will be affected.

Nevertheless, the rumors persist and the latest version that’s circulating falsely say NAR is advocating for the tax’s repeal. But while NAR doesn’t support the tax (it was added into the health care law at the last minute and never considered in hearings), it’s not advocating for its repeal at this time.

The characterization of the 3.8 percent tax as a tax on real estate is an example of an Internet rumor, says Heather Elias, NAR’s director of social business media. Elias and Linda Goold, NAR’s director of tax policy, sat down for a discussion of how the tax works and how Internet rumors work and you can find their remarks in the 6-minute video below.

video link: http://bcove.me/rsrtn6h8

Goold says the tax will affect few home sellers because so many different pieces must fall into place a certain way for the tax to apply. First, any home sale gain must be more than the $250,000-$500,000 capital gains exclusion that’s in effect today. That’s gain, not sales amount, so you really have to reap a substantial amount for the tax to even come into play. Very few people are walking away with a gain of more than half a million dollars today, even in the high-end home market, so right off the bat only a few home sellers would be a candidate for the tax.

For the few households that do see a gain of more than the $250,000-$500,000 exclusion (that’s $250,000 for single filers and $500,000 for joint filers), only the amount above the exclusion would be factored into the tax calculation, and that would still only apply to high-income households, which the law defines as single people earning $200,000 a year and joint filers earning $250,000 a year.

So, if you are a households with annual income of $250,000 or more and you earn a gain of more than $500,000 on your house (again, that’s after the $500,000 exclusion), any amount of gain above the exclusion would be plugged into a formula to see if it’s taxable. If it turns out that it’s taxable, then the amount could be subject to the 3.8 percent tax. If the household had a gain of more than $500,000 but only earned $249,000 a year in income, the tax wouldn’t apply.

(Note that these are just hypothetical examples. To know if a case would really be subject to the tax, a professional tax preparer or tax attorney has to look at all the particulars of the tax filer’s case. Only a tax professional is in a position to say the tax is applicable, but the examples cited here could help you get a sense of how the tax works.)

The other thing about the tax worth noting is that, although it takes effect in 2013, any impact on taxes wouldn’t happen until 2014. That’s because the tax filer would do the calculation in 2014 for the 2013 tax year. Because it’s not a tax on a real estate sale but rather on a capital gain, it’s not calculated at the time of an asset sale, whether that asset is a house or something else. It’s calculated at the time the filer figures his or her tax.

This is all explained clearly in the video, so if you have questions about how the tax works, or if you’re still hearing rumors about the tax and you’re not certain of the accuracy of what you’re hearing, the video should prove helpful.

Posted in Info

How many people buy homes in Yakima with all cash?

Sep18
2012

Written by Cory

September Newsletter

The numbers are much higher than you might expect…and they have been increasing each year for the past five years. Year to date in 2012, there have been 870 residential sales (through August). 22% of those sales were purchased without any financing at all (all cash). The other 78% of those sales were financed. Throughout the entire decade prior to 2010, cash purchases made up less than 15% of all residential sales in the Yakima Area.

With interest rates remaining at all time lows, why aren’t more buyers getting home loans? Many home buyers are simply unable to qualify for a home loan as the credit and loan qualification requirements continue to tighten. In other scenarios, a seller’s home does not meet an appraiser’s conditional requirements for certain types of loans. Both of these reasons directly affect the amount of low down-payment loans being used to purchase. FHA loans became extremely popular in 2009 during the $8,000 first time home buyer tax credit. In 2009, 33% of all home sales in the Yakima Area were financed with FHA loans. Conventional loans were used for 38% of purchases that year. in 2010, FHA loans surpassed conventional loans at 36%. Conventional loans were used less this year than any year in the past decade at 35% of all residential purchases.

Since 2010, cash purchases and conventional financing have become much more popular, while FHA financing has decreased to 21% year to date 2012. Conventional financing has been used for 46% of all residential purchases this year to date.

A few more notable facts: In 2005 and 2006, 70% of all residential purchases in the Yakima area were financed with conventional mortgages. VA mortgages have been used in 6% or less of all residential purchases in the Yakima area each year over the past 10 years. USDA loans have made up less than 3% of all mortgages used for purchases in Yakima over the past 5 years.

What exactly are these different types of loans? For a thorough explanation of the different mortgage types, visit: http://www.homebuyinginstitute.com/mortgagetypes.php

In the month of August, the Yakima Area Real Estate Market recorded 142 total homes sold with and average sales price of $160,696. 142 total homes sold is the most homes sold for any month dating back 27 months to June of 2010 (June of 2010 was the last month to qualify for the $8,000 first time home buyer tax credit). Homes are selling and the market is definitely shifting. While the average sales price was the 3rd lowest for any month this year, the year to date average remains significantly higher than last year. The average Days on Market for sold homes in the Yakima area has decreased to 133.5, while the total residential listings increased slightly to 1,244 last month.

Posted in Info, Monthly Newsletters

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My Yakima homes for sale

It’s Real Estate Season in Yakima!

Yakima housing trends and sales figures for 2013

Two signs that prove the Yakima Housing Market is rapidly improving – February Newsletter

How did 2012 stack up? – January Newsletter

Interview with KNDO – How will the Fiscal Cliff potentially impact Yakima Real Estate?

Yakima Market Update – November 2012

Yakima MLS Residential Sales Statistics 2012

2012 sold homes show an 8% increase in Yakima area home values.

3.8% Tax: What’s True, What’s Not

How many people buy homes in Yakima with all cash?

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