Yakima County's housing market froze in the first quarter of 2009, resembling statewide trends in home sales.
The county saw a 26.5 percent year-over-year decline in the dollar volume of all residential real estate sales during the first three months of 2009, while the average home price dropped 5.2 percent, to $151,239, according to figures from Headwaters: The Source, a Selah-based firm that tracks real estate trends. Those figures include both new construction and existing homes.
The number of existing homes sold in the state dropped 30.6 percent in the first quarter and the median sale price of existing homes fell 13.7 percent to $253,500, according to the Washington State University Center for Real Estate Research.
"(With) the way the economy is, people are holding back," said Mike Kokenge of Coldwell Banker Associated Realtors.
The Washington State University figures show that Yakima County dropped 25.6 percent from 2008 numbers. The median existing home price during the first quarter also dropped 7.4 percent, to $137,300 from the same period a year ago.
Local real estate agents cited a variety of reasons for the decline including concerns about the national real estate market.
"I think there was a caution due to the economic situation and the national news media," said Tom Trepanier, owner/broker of Windermere Real Estate Yakima. "It put caution in an already conservative market."
Glenn Crellin, executive director of the Washington Center for Real Estate Research, said it's important to note that the Yakima Valley continues to fare better than other areas of the state and the nation. "We're still affordable and Yakima's (real estate market) got good press," Kokenge said.
Parade, a magazine that serves as an insert for many Sunday newspapers across the country, including the Yakima Herald-Republic, recently named Yakima as one of three stable markets to watch.
And within the Valley there are some areas that are doing well than others.
Travis Davis, broker/owner of Coldwell Banker Tomlinson Wine Country, said that while sales in Grandview, Sunnyside and other areas in the Lower Valley were not as strong as in the past, it was more stable than other areas of the country.
There was not an oversupply of listings, which would lead to a depression of prices, he said.
There's hope for the spring - In April, the dollar volume of residential home sales in Yakima County still had a 25 percent year-over-year decline, according to Headwaters: The Source.
That is likely a reflection of the strength of the residential market a year ago, said Kristi Wilbert, owner of Headwaters: The Source. But those sales figures are certainly an improvement from that of the previous months.
And those who make a living selling houses locally believe that the buyer's hibernation will subside.
The key to that activity will be the first-time home buyers and those who are buying in the lower price ranges.
Many of the homes that did sell during the first few months of this year were under $300,000 and many of those home were under $200,000, Trepanier said.
"Each month is showing more signs of sales from the previous month," he said. "We're on the rebound. We're heading in a positive direction."
There's also hope that a boost will come in the form of an $8,000 tax credit for first-time homebuyers, which is part of the federal stimulus package.
It's too early to tell the effects of the tax credit as many home owners who are taking advantage of the credit have not yet completed the closing of their home, Wilbert said.
But it's clear that the credit is encouraging people to enter the market.
"It is increasing the optimism and it's increasing the current activity," Trepanier said.
Source: Yakima Herald-Republic by Mai Hoang (05-09-09)
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