News Desk

Real-Estate Update: Boom or Bust?

According to The Real Estate Journal, home prices are down 1.5 percent across the United States, with Detroit, Boston and Washington D.C., leading the decline. Sales of previously occupied homes dropped 8.4 percent in March from the previous month…the largest monthly drop since 1989.

However, not all of the country is enduring a stagnant real estate market. Prices and demand are stable—even strong—in the Pacific Northwest. In February, housing prices rose 10.6 percent in Seattle and 7.7 percent in Portland. It’s not surprising that these two cities ranked #1 and #2 in Cooking Light’s recent list of the “20 Best Cities in the U.S.” The magazine’s criteria included the number of parks and recreation areas in the city, restaurant ratings, farmer’s market listings and fitness, health and exercise data.

One small central Washington town is concerned about its housing market…but not because of a housing surplus! Wenatchee is a town of around 30,000 set in a picturesque valley about two hours east of Seattle. Surrounded by apple orchards and the snow-covered peaks of the Cascades, it is especially pretty in spring. Housing was the topic at a recent Chamber of Commerce meeting. Wenatchee’s unprecedented demand for real estate has sent housing and land prices skyrocketing in recent years. The average home price five years ago was $154,000. Today it is $253,000, an increase of 64 percent! The number of real estate agents has doubled in that time. Commercial real estate has risen from $12 per square foot to $25. Affordable housing for the working middle class has become a looming problem for city fathers, as they strive to preserve the quality of life that is attracting outsiders to the area in record numbers.