June was another strong month in the local Chelan-Douglas real estate market, as we were down year- over-year only 3% in dollar volume compared to June last year.
This compares favorably to the 18.9%
national decline to June of last year, as released earlier today. In the under $750K price ranges, in June
our market was up 8% year over year. Unfortunately, interest rates had a larger impact in June than
May as the volume of deals financed resumed to 69%, as opposed to what now looks like a temporary
reprieve in May of 77%. See June year over year comparison below.
Year to Date sale volume in terms of dollar amount is down 13% compared to last year. Nationally, sales
are down 23% so we are still ahead of national averages. While cash sales are up 21%, once again
financed transactions are lagging down $63MM and 22.6%. However, the under $750K price ranges in
total are down only 4%, and the under $500K market is down only 2%. The under $750K price ranges
represents 85% of the transaction volume.
Price per square foot reflects the sales volume action in the given price ranges. The hyper peak of
pricing last fall has moderated, and prices appear to be back to where they were a year ago, with the
under $500K price range having come down slightly.
In the under $700K price ranges, data provided by Pacific Appraisal Associates indicates inventory is
down 25% in the Wenatchee market to 156 SFH from June of last year. We need more inventory in the
lower end ranges. Specifically, we need more new inventory where the seller is not locked into a 3%
mortgage. Here is an article summarizing that plight.
Next we overlaid the two graphs and added some trend lines. The blue line is the
national home price index and the purple line is the Fed’s injection into the economy.
Freddie Mac released this AM that mortgage rates dropped to their lowest level in four weeks. Let’s hope this gives the market a little boost for August.
Other than single family homes ….
- There were 74 land only transactions in the amount of $18,785,027
- 19 mobile home transactions with land for $7,612,000
- 3 commercial building transactions for $2,470,000
- 12 condos for $6,238,500
Want more data? Different Data? Send me a note. I can also provide the details behind these summary schedules.
– Brian Fair, Owner