Market News • November 7, 2019

Big Island of Hawaii Real Estate Market Update

by Afshan Adil

The following analysis of the Big Island real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

The State of Hawaii saw employment grow at an annual rate of 1.1%, with 6,000 jobs added over the past 12 months. In September, the state’s unemployment rate was 2.7%, marginally higher than the 2.6% rate of a year ago.

On the Big Island, total employment continues to contract, losing 3,829 jobs over the past year. Annualized employment growth has been negative for the past 12 months. That said, the island’s unemployment rate was a healthy 3.5%, but that is still up from 3.2% a year ago.

HOME SALES

In the third quarter of 2019, 829 homes sold. This was an increase of 9.7% compared to the third quarter of 2018 but 9.2% lower than the second quarter of 2019.
Sales were higher in six markets and dropped in three. There was significant growth in sales in the North Kohala market, as well as North and South Kona. The markets that experienced sales declines are all relatively small which makes them more prone to swings, so I’m not overly concerned that this is a trend.
The growth in sales came as inventory levels rose 9% from a year ago. The average number of homes for sale in the quarter was up 5.2% from the second quarter of this year.
Pending home sales dropped 8.7% compared to the second quarter of this year, suggesting that closings in the fourth quarter may be a little disappointing.

HOME PRICES

The average home price in the region rose 16.7% year-over-year to $584,756. Prices also rose between the second and third quarters of this year by 11.3%.
Affordability remains an issue, but the current low-interest-rate environment has been motivating buyers, and prices continue to rise.
Prices rose in five markets but dropped in four. Appreciation was strongest in the small South Kona market, where prices rose 44.9%. The biggest drop in prices was in the small North Kohala market.
All things considered and despite ongoing affordability issues in many Big Island market areas, I still expect home prices to rise through the balance of the year and into 2020.

DAYS ON MARKET

The average time it took to sell a home on the Big Island dropped ten days compared to the third quarter of 2018.
The amount of time it took to sell a home dropped in four market areas and rose in five.
In the third quarter, it took an average of 114 days to sell a home, with homes selling fastest in North and South Kona and slowest in North Hilo.
It took six days longer to sell a home in the third quarter than in the second quarter of this year.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the third quarter of this year, I have left the needle fairly close to the middle. Inventory levels remain low, prices are higher, and interest rates are lower, which all favor home sellers. However, pending and closed sales are down, and days on market has risen, which favors buyers. On the whole, we are approaching a balanced market on the Big Island.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Market News • November 6, 2019

Montana Real Estate Market Update

by Afshan Adil

The following analysis of select Montana real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

The State of Montana has added 4,800 new non-agricultural jobs over the past 12 months, representing an annual growth rate of 1%. Montana’s growth rate remains below the U.S. as a whole and my current forecast is for statewide job growth to rise 1.1% in 2019. My preliminary forecast for 2020 shows the state increasing employment by 1.2%.

In September, the state unemployment rate was a healthy 3.3%, down from 3.7% a year ago.

HOME SALES

During the third quarter of 2019, 1,070 homes sold — a drop of 15.5% over the same period in 2018.
Total sales activity was a mixed bag, with increases in only two counties and declines in seven. The largest annual increase was in Jefferson County, where sales were up more than 22%. The largest decline in sales was in the very small Park County.
The number of homes for sale remains well below what I would like, with an average of 1,264 listings in the third quarter within the counties contained in this report.
As mentioned above, inventory levels remain low, and this is holding sales back. Unfortunately, I don’t expect to see any significant increase in the number of homes for sale until next spring.

HOME PRICES

Following the significant 25.2% annual increase in home prices in the second quarter, the third-quarter figures were not as impressive. Year-over-year prices dropped 7.1% to an average of $373,133.
Average prices dropped in Lewis & Clark and Madison counties. I don’t believe this is endemic and expect prices to pick back up in the new year.
Even though the region saw home prices drop, there were several counties that experienced significant price growth. Prices jumped in Ravalli and Lake counties, and solid gains were also seen in Missoula and Broadwater counties.
The takeaway from this data is that prices continue to rise but not all markets are created equal.

DAYS ON MARKET

The average number of days it took to sell a home rose four days compared to the third quarter of 2018.
Homes sold fastest in Gallatin County and slowest in Lake County. Four counties — Missoula, Lewis & Clark, Jefferson, and Madison — saw days on market drop compared to the same period a year ago.
During the third quarter of 2019, it took an average of 118 days to sell a home in the region.
While days on market rose modestly in third-quarter, this is likely only a seasonal issue.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the third quarter of 2019, I have moved the needle a little more in favor of buyers, but it’s still a sellers’ market. Mortgage rates remain at very attractive levels and home price growth has slowed somewhat. That said, the number of homes for sale is still very low and this might lead some buyers to wait until next spring when they hope there will be more choice.

ABOUT MATTHEW GARDNER

Buying • November 6, 2019

Is the Condominium Lifestyle Right for You?

by Meaghan McBoom

Image Source: Grand Warszawski via Shutterstock

Condominium homes are a great, low-maintenance choice for a primary residence, second home, or investment property. This alternative to the traditional single-family home has unique issues to consider before buying, as well as unique benefits.

Increasingly, condos are not just for first-time homebuyers looking for a less expensive entry into the housing market. Empty-nesters and retirees are happy to give up mowing the lawn and painting the house. Busy professionals can experience luxury living knowing their home is safe and well-maintained while they are away on business.

If you are considering buying a condominium for a home, here are a few things you should know:

Condominium basics:

With condominiums, you own everything in your unit on your side of the walls. Individual owners hold title to the condominium unit only, not the land beneath the unit. All owners share title to the common areas: the grounds, lobby, halls, parking areas and other amenities. A homeowners’ association (HOA) usually manages the complex and collects a monthly fee from all condominium owners to pay for the operation and maintenance of the property. These fees may include such items as insurance, landscape, and grounds up-keep, pool maintenance, security, and administrative costs.

The owners of the units in a condominium are all automatic members of the condo association. The association is run by a volunteer Board of Directors, who manage the operations and upkeep of the property. A professional management company may also be involved in assisting the board in their decisions. The condo association also administers rules and regulations designed to ensure safety and maintain the value of your investment. Examples include whether or not pets are allowed and the hours of use for condominium facilities, such as pools and work-out rooms. Should a major expense occur, all owners are responsible for paying their fair share of the expense.

The pros and cons of condominium living:

The condominium lifestyle has many benefits, but condominium ownership isn’t for everyone. Whether living in a condominium works for you depends on your current and planned future lifestyle. By necessity, condominium associations have a number of standardized rules. You need to decide whether these regulations work for you or not. Here are some points to keep in mind if you’re considering condominium living.

Convenience: People who love living in condominiums always cite the convenience factor. It’s nice to have someone else take care of landscaping, upkeep, and security. Condominium homes are often located in urban areas where restaurants, groceries, and entertainment are just a short walk away.

Luxury amenities: May condominiums offer an array of amenities that most homeowners couldn’t afford on their own, such as fitness centers, clubhouses, wine cellars, roof-top decks, and swimming pools. Lobbies of upscale condominiums can rival those of four-star hotels, making a great impression on residents.

Privacy: Since you share common walls and floors with other condominium owners, there is less privacy than what you’d expect in a single-family home. While condominiums are built with noise abatement features, you may still occasionally hear your neighbors.

Space: Except for very high-end units, condominiums are generally smaller than single-family homes. That means less storage space and often, smaller rooms. The patios and balconies of individual units are usually much smaller as well.

Autonomy: As a condominium owner, you are required to follow the laws of the associations. That means giving up a certain amount of control and getting involved in the group decision-making process. HOA bylaws vary greatly from property to property, and some people may find certain rules too restrictive.

Things to consider when you decide to buy:

Condominium homes vary from intimate studios to eclectic lofts and luxury penthouses. The right condominium is the one that best fits your lifestyle. Here are a few questions to ask to determine which condominium is right for you.

How will you use it?

Will your condominium be your primary residence? A second home? An investment property? While a studio may be too small for a primary residence, it might be a perfect getaway. Also, consider how your lifestyle may change over the next five to seven years. If you are close to retirement, you may want to have the option of turning a vacation condominium into your permanent home.

What amenities are most important to you?

Amenities vary location to location. Decide what you want, and you can be assured of finding it. Most urban and resort condominiums have an enticing array of extras, from spas to movie screening rooms to tennis courts.

What are your specific needs?

Do you have a pet? Some associations don’t allow them; others have limitations on their size. Most buildings will have a rental cap, so be sure to know what that cap is if you’re buying as an investment. Parking can also be a major issue, especially in dense, urban areas. How many spaces do you get per unit? Do you pay extra if you have more vehicles?

Cost: Condominium homes typically cost less than houses, so they’re a great choice for first-time buyers. However, because condominiums are concentrated in more expensive locations, and sizes are generally smaller than a comparable single-family home, the price per square foot for a condominium is usually higher.

Finally, once you’ve found a property you like, examine the association’s declaration, rules, and bylaws to make sure they fit your needs. The association will provide you with an outline of their monthly fees and exactly what they cover so you can accurately budget your expenses.

Ask to review the association board’s meeting minutes from the past year to get an idea of any issues the association is working on. An analysis of sales demand and property appreciation compared to like units may help ensure that you make the best possible investment.

Market News • November 5, 2019

Oregon and Southwest Washington Real Estate Market Update

by Afshan Adil

The following analysis of the Oregon and Southwest Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

The State of Oregon added 29,300 new jobs over the past 12 months, representing an annual growth rate of 1.5%. The current pace of job growth has slowed as we’ve moved through 2019. I anticipate this trend will continue.

The Southwest Washington market (Clark, Cowlitz, Skamania, and Klickitat counties) added 2,200 new jobs over the past 12 months, which represents an annual growth rate of 1.3%.

Oregon’s unemployment rate was 4% in August, down from 4.1% a year ago. In Southwest Washington, the unemployment rate was 5.8%, up from 4.9% a year ago.

HOME SALES

Third-quarter home sales dropped a very modest 1.5% compared to the same period last year, with a total of 17,885 transactions occurring.
Sales rose fastest in Crook County, which saw a significant 23% increase compared to the third quarter of 2018. There were also solid increases in Tillamook and Klickitat counties. Home sales fell the most in Skamania, Klamath and Wasco counties, but they are relatively small markets so I am not overly concerned.
Year-over-year sales rose in 13 counties and dropped in the other 13 counties contained in this report.
Sales in the third quarter rose 7% compared to the second quarter of this year, which suggests that the region’s housing market remains quite buoyant.

HOME PRICES

The average home price in the region rose 3.5% year-over-year to $403,584. Sale prices were 0.6% higher compared to the second quarter of this year.
Skamania County led the market with the strongest annual price growth. Homes there sold for 26.3% more than a year ago. The greatest contraction in sale prices was in small Hood River and Tillamook counties. Smaller markets can be prone to significant swings, though, so I see no cause for concern.
All but three of the counties contained in this report experienced price growth compared to the third quarter of 2018. Although prices continue to appreciate, we are seeing some softening in appreciation in many markets.
The takeaway from this section is that price growth continues to moderate. Pervasively low mortgage rates will allow prices to continue rising, but at slower rates than over the past several years.

DAYS ON MARKET

The average number of days it took to sell a home in the region dropped two days compared to the third quarter of 2018 and was down eight days compared to the second quarter of 2019.
The average time it took to sell a home last quarter was 62 days.
Compared to a year ago, 12 counties saw the length of time it took to sell a home drop, 1 remained static, and 13 saw market time rise.
Homes again sold fastest in Washington (27 days) and Clark (29 days) counties.

CONCLUSIONS

The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Although sales activity moderated in the quarter, there appears to still be significant demand for housing in the region. Inventory levels, although rising, are still lower than I would like. Given economic vitality in the state and low mortgage rates, I expect to see more home buyers start their search for a new home.

Because of these factors, I have moved the needle a little more in favor of home sellers.

ABOUT MATTHEW GARDNER

Matthew also sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington.

Living • November 4, 2019

Your November To-Do List

by Meaghan McBoom

The month of November brings the end to daylight savings time, for most of us anyway, and the start to the holiday season. Don’t be left in the cold, jumpstart your preparations with this quick checklist.

Check Your Fire Safety System

Test your smoke alarms and CO detectors to make sure they’re in working order. Locate your fire extinguisher and be sure the gauge shows that it has enough pressure. If it isn’t already stored in or near the kitchen, re-locate it closer to the oven for quick action should Thanksgiving dinner go up in flames.

Clean Your Garbage Disposal

Don’t let a stinky garbage disposal ruin your appetite, keep it smelling fresh with a few pieces of lemon rind and some ice cubes. The lemon cleans and deodorizes the odor causing bacteria and the ice scrapes away any debris, as well as sharpen the blades.

Check and Repair Other Plumbing Issues

Run the water in each sink to determine if it’s draining properly.

If your bathroom sink is not draining quickly, a great natural way to clear debris, with ingredients that you likely already have in the house, is to put ½ cup of baking soda down the drain, followed by ½ cup of vinegar, then plug the drain and let it sit for an hour. When you unplug the drain, pour boiling water down until it drains quickly.

Send a snake down your tub drain, then add a hair trap to each drain to prevent future blockage, especially when you have guests over for the holidays.

For a slow kitchen drain, the likely cause is a build up of fat, oil, or grease (FOG drain clog). The best way to clear this kind of clog is with 2 liters of water and a few tablespoons of dish washing detergent. Pour slowing and keep pouring until the drain is cleared.

Pull Out Your Winter Essentials

For those of you in cold climates, get out the shovels and replenish the ice-melt bucket before the snow and ice hit this season. Don’t get caught in the storm, make sure they’re easy to access or easy to pull out when the weather forecast calls for below freezing temperatures.

It’s also a good idea to get out your snow gear and toys. Don’t miss an opportunity to play in the snow because you can’t get to your shed to pull out your snow boots, gloves, or sled!

Check and Replace Floor Protectors

Prevent damage to your floors by checking any pads on your chair legs as well as the rug mat.

Make sure the pads on your chairs, sofas, and tables are intact so when you move them, they won’t rub and scuff or dent flooring. Lift the rug to double check that the rug mat isn’t causing damage to the floor as well. Sometimes, the adhesive can stick to the floors, leaving a residue that’s almost impossible to clean, this is especially important on cement floors.

Prepare the Guest Bedroom

Has it been a while since anyone, besides the dog or cat, has slept in the guest bed? This is a great time of year to wash the sheets and clean the room in preparation for holiday guests. And don’t forget the cobwebs in the corners! Organize and re-stock the closets so your guests can easily access more blankets and towels during their stay.

Once you’ve completed your November checklist, you can sit back with your hot apple cider and know that you’re ready for the holiday season.

Market News • November 4, 2019

Idaho Real Estate Market Update

by Afshan Adil

The following analysis of select counties of the Idaho real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Following a trend that started last fall, job growth in Idaho continues to moderate. The addition of 15,700 new jobs year-over-year represents an annual growth rate of 2.1%. This is to be expected at this point in the economic cycle, though it’s worth adding that the current rate of job growth remains well above the national average of 1.4%.

In August, the state unemployment rate was 2.9%, marginally higher than the 2.8% rate a year ago. It cannot be disputed that the state remains at full employment. It’s also interesting to note that the employment rate remained below 3% even as the labor force rose by 2.2%, suggesting that the economy remains very strong and new entrants to the labor force are finding jobs relatively easily.

HOME SALES

During the third quarter, 7,342 homes sold, representing a modest drop of 3.4% compared to the third quarter of 2018.
In Northern Idaho, Shoshone County experienced a 17.9% increase in sales over the third quarter of 2018. There was a modest increase in Bonner County and a very slight contraction in Kootenai County. In Southern Idaho, sales jumped in Boise and Canyon counties. Blaine County also saw a slight increase, but sales activity was lower in the rest of the region.
Year-over-year sales growth was positive in two Northern Idaho counties and three Southern Idaho counties.
Pending sales rose in the third quarter, suggesting that closed sales in the final quarter of this year are likely to be an improvement over current figures.

HOME PRICES

The average home price in the region rose 8% year-over-year to $367,963. Prices were 2.7% higher than in the second quarter of this year.
Prices rose in all counties compared to the third quarter of 2018.
In Northern Idaho, Shoshone County led the market with the strongest annual price growth. Bonner County also had solid price growth. In Southern Idaho, Gem County saw prices rise a very significant 29.7%, and there were notable increases in Valley, Canyon, and Boise counties.
Inventory continues to be an issue. The number of homes for sale is down 3.4% compared to the third quarter of 2018. Although listings are up 7% over the second quarter, the market remains very tight, and this is pushing prices higher.

DAYS ON MARKET

It took an average of 94 days to sell a home in Northern Idaho, and 54 days in the southern part of the state.
The average number of days it took to sell a home in the region dropped ten days compared to the third quarter of 2018. It was also ten days lower than in the second quarter of this year.
In Northern Idaho, days-on-market dropped across the board. In Southern Idaho, market time dropped in all counties except Ada and Canyon, though the rise in average market time was very modest.
Homes sold the fastest in Gem, Canyon, and Ada counties.

CONCLUSIONS

The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Job growth continues to slow from the frenetic pace of the past few years but remains quite impressive. As is commonly known, economic/job growth leads to demand for homeownership and this continues to bode well for the Idaho market; however, home sales continue to be held back by a lack of inventory and this is leading to higher prices.

As such, it remains a sellers’ market so I have moved the needle just a little more in their direction.

ABOUT MATTHEW GARDNER

Matthew also sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the WA Center for Real Estate Research; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Market News • October 31, 2019

Central Washington Real Estate Market Update

by Afshan Adil

The following analysis of the Central Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Washington State employment has softened slightly to an annual growth rate of 2%, which is still a respectable number compared to other West Coast states and the country as a whole. In all, I expect that Washington will continue to add jobs at a reasonable rate though it is clear that businesses are starting to feel the effects of the trade war with China and this is impacting hiring practices.

The state unemployment rate was 4.6%, marginally higher than the 4.4% level of a year ago.

On a seasonally adjusted basis, the counties within Central Washington added 1,514 new jobs over the past 12 months, representing a growth rate of 0.7%. The local unemployment rate rose compared to a year ago from 5.4% to 6.7%. However, a significant reason for the rise in unemployment is due to a 2% increase in the civilian labor force.

HOME SALES

In the third quarter of 2019, home sales throughout Central Washington rose 4.3% year-over-year, with a total of 1,457 homes sold.
Sales rose significantly in Chelan County, which saw an increase of 18.7% over the third quarter of 2018. Sales also rose in Douglas and Yakima counties, but fell in Okanogan County, though the drop was modest (-14 units).
The number of pending home sales — an indicator of future closings — was up more than 70% compared to the second quarter, indicating that closings likely have further to rise in the final quarter of this year.
Listing activity in the quarter was lower compared to a year ago, but there were modest increases in Chelan and Yakima counties. It’s unlikely inventory levels will rise in the near term, but I do hope to see more choice in the market as we move into 2020.

HOME PRICES

Year-over-year, the average home price in the region rose 10.4% to $360,903. Price growth continues to trend well above the long-term average, with limited inventory pushing prices higher.
Prices were 16% higher than in the second quarter of this year.
Prices rose in all counties contained in this report compared to the third quarter of 2018, with double-digit growth in Douglas and Yakima counties.
While the area continues to experience significant home-price growth, I expect to see a slowdown as we move through the quieter winter months.

DAYS ON MARKET

The average number of days it took to sell a home rose three days compared to the third quarter of 2018.
The average time it took to sell a home in the region was 58 days, down 24 days compared to the second quarter of 2019.
Three markets contained in this report — Chelan, Yakima, and Douglas — saw days-on-market drop from the same quarter in 2018. The balance of the region took slightly longer to sell a home.
Homes sold fastest in Douglas County, where it took an average of 42 days to sell a home. The greatest drop in the time it took to sell a home was also in Douglas County, where it took 10 fewer days than in the third quarter of 2018.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the third quarter of 2019, I have moved the needle a little more in favor of sellers. Inventory levels remain low, and prices resumed their upward trajectory. This, in concert with very favorable mortgage rates, continues to bode well for home sellers.

ABOUT MATTHEW GARDNER

Market News • October 30, 2019

Nevada Real Estate Market Update

by Afshan Adil

The following analysis of the greater Las Vegas real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Job growth in the Las Vegas metropolitan area has been softening lately, but the area still added 17,900 new jobs over the past 12 months. This represents an annual growth rate of 1.8%, which is the lowest annual growth rate since the summer of 2012. Employment growth is still above the national average (1.4%) but slowing job growth came as a bit of a surprise. I will be watching to see if this is a pervasive trend or just a temporary blip.

The unemployment rate in the Las Vegas area was 4.4%, down from 4.7% a year ago.

HOME SALES

A total of 9,427 homes sold in the third quarter of 2019, an increase of 3.1% compared to the same period a year ago but 1.3% lower than in the second quarter of this year.
Home sales rose the most in the Aliante neighborhood. There were also double-digit increases in the Southeast Las Vegas and Anthem neighborhoods.
Sales were a mixed bag, with transactions rising in ten submarkets but falling in five. The most significant drop was in the Whitney neighborhood.
Pending sales rose a significant 13.1% year-over-year but were 5.3% lower compared to the second quarter of 2019. This suggests that closings in the final quarter of the year may be lower than in the third quarter.

HOME PRICES

Home prices in the area rose 5.7% compared to the third quarter of 2018 to an average of $321,606. Prices were up 2.3% compared to the second quarter of this year.
Home price increases picked back up in the third quarter and continue to rise at rates that are well above most of the nation. It’s clear that demand remains strong and, in concert with very attractive mortgage rates, I anticipate home prices will continue rising through the balance of the year and into 2020.
Prices rose in all but two submarkets compared to the same quarter last year. The strongest growth was in The Lakes/Section 10 Las Vegas submarket, where prices were up 12.8%.
The takeaway here is that, although job growth has slowed, demand for homeownership remains very strong.

DAYS ON MARKET

The average time it took to sell a home in the region rose 17 days compared to the third quarter of 2018.
Regionwide, it took an average of 44 days to sell a home in the third quarter of 2019 — a day more than in the second quarter of the year.
Days-on-market rose in all submarkets compared to a year ago.
As mentioned above, market time rose compared to the third quarter of 2018, with the greatest increases occurring in the Northeast Las Vegas and Whitney neighborhoods, where home sales took 27 and 21 more days, respectively than in the third quarter of 2018.

CONCLUSIONS

The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Employment growth in Clark County is still positive and, although the number of new jobs created has been slowing, there is clearly demand for homeownership. But with demand comes rising home prices. When combined with ongoing low mortgage rates, these factors tell me that the Las Vegas market will be one of the strongest in the Western U.S. for home price growth in 2019.

There are more homes for sale, which I’m sure is of some relief to buyers, but the market continues to favor sellers, so I am leaving the needle in the same position as in the second quarter.

ABOUT MATTHEW GARDNER

More • October 30, 2019

Windermere Foundation Has Raised Over $1.5 Million This Year!

by Marilou Ubungen

Windermere offices throughout the Western U.S. have been busy raising money and making donations to non-profit organizations in their local communities that provide services to low-income and homeless families. And their efforts are paying off; so far this year we’ve raised over $1.5 million, bringing the total raised by the Windermere Foundation to $39.5 million since 1989.

Here are just a few examples of how our offices are giving back to their communities:

Fort Collins, Colorado

The Windermere Real Estate office in Fort Collins held its 5^th Annual Windermere Foundation Tailgate Party on Friday, September 20. The family-friendly event featured food, drinks, a bouncy house obstacle course, corn hole, face painting, and live music. Over $1,800 was raised for the Windermere Foundation during this event. All proceeds from the tailgate “party with a purpose” benefitted Partners Mentoring Youth and Crossroads Safehouse.

Centralia, Washington

The Windermere office in Centralia, WA sponsored the “Down Home: A Toledo Shindig” event held at Bonanza BBQ on September 14 to benefit Toledo School District students in need. Local businesses and residents came together to donate auction items, food, and volunteer their time. Windermere Centralia office managing broker Paula Burrows, Dan Gorton owner of Bonanza BBQ, and others from the community formed a committee and spearheaded the organization of the fundraising event, seeing a need in the community that was not being met. The Gortons provided the venue and the BBQ. Other sponsors provided additional food items, entertainment, and big-ticket items for the auction. The event raised $34,000 for a fund to help provide basic needs for students in the school district, things that low-income families couldn’t otherwise afford.

Photo Courtesy of Josie Ray Photography

Spokane, Washington

The Windermere office in Spokane, WA held their annual Windermere Shoes and Socks Event at their local Big 5 sporting goods store on August 24. Windermere agents and family members volunteered their time to help 132 children select a pair of shoes and socks. An additional 250 pairs of socks were also donated by Liberty Lake Rotary. In total, the Windermere office donated over $5,400 to provide shoes and socks to local children in need.

Windermere offices are proud to host events in their communities, like the ones mentioned above. These generous donations to the Windermere Foundation further our mission to support low-income and homeless families in the areas where we live and work. If you’d like to help support programs in your community, please click the Donate button.

To learn more about the Windermere Foundation, visit WindermereFoundation.com.

Market News • October 29, 2019

Utah Real Estate Market Update

by Afshan Adil

The following analysis of select counties of the Utah real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Agent.

ECONOMIC OVERVIEW

Utah’s non-agricultural employment rose by 42,100 jobs over the past 12 months, representing a solid growth rate of 2.8%. For perspective, the U.S growth rate is 1.4%. Year to date, Utah has added an average of 3,350 jobs per month, which is down from 4,200 per month last year. I expect we will continue to see modest slowing in employment gains as we move forward given the maturity of the economic cycle. Although the trend is slowing, I anticipate the state will see job growth around 2.8% in 2019. My early forecast for 2020 suggests that Utah will see employment growth of 2.6%.

In August, the state unemployment rate was 2.8%, below the 3.1% level of a year ago.

HOME SALES

In the third quarter of 2019, 10,562 homes sold, representing a solid increase of 8.2% compared to the same period in 2018 and 4.3% higher than in the second quarter of this year.
Total sales activity rose in all but the very small Morgan County. Year-over-year, sales rose by double digits in three counties, with impressive increases in Summit and Utah counties.
The number of homes for sale in the third quarter was only 2.6% higher than in the same period a year ago but was 11% higher than the second quarter of this year. There continues to be significantly more choice in the market, which is good news for home buyers.
Pending sales in the third quarter were up 13% compared to a year ago, but were 7% lower than in the second quarter, suggesting that closings in the final quarter of this year may drop from current levels.

HOME PRICES

The average home price in the region continued to rise in the third quarter, with a year-over-year increase of 9% to an average of $401,638. Sale prices were 2.5% higher than in the second quarter of this year.
All but Wasatch County saw price increases compared to the same period a year ago. The contraction of price in Summit County was significant, but, because it is a small and very expensive area, I am not overly concerned this represents a pervasive trend.
Appreciation was again strongest in Weber County, where sale prices were up by 13.7% to $298,333. As the most affordable market in the area, this is not surprising.
The takeaway here is that home prices continue to appreciate at significant rates. I still expect to see some moderation in price growth as we move through the year and into 2020, but Utah will clearly continue to outperform the nation as a whole.

DAYS ON MARKET

The average number of days it took to sell a home in the counties covered by this report rose eight days compared to the third quarter of 2018.
Homes sold fastest in Davis, Salt Lake, and Weber counties, and slowest in the expensive Summit County. All counties saw days-on-market rise compared to the third quarter of 2018.
During the third quarter of this year, it took an average of 45 days to sell a home in the region, down from 53 days in the second quarter.
The Utah economy is still outperforming almost all other states and this will continue to drive housing demand.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the third quarter of 2019, I have moved the needle a little more in favor of sellers. Although the area has seen a modest increase in the number of homes for sale and days-on-market, prices, pending sales, and closed sales are higher, which certainly favors sellers.

ABOUT MATTHEW GARDNER