Tri-Cities: Richland-Pasco-Kennewick - "Most Secure U.S. Places to Live"

The Tri-Cities (Richland-Pasco-Kennewick) area was ranked 18 in the Farmers Insurance Group of Companies third annual ranking of top 20 ‘Most Secure U.S. Places to Live’.


The Farmers Insurance rankings are based on data from 379 U.S. municipalities. It factors crime statistics, unemployment rates and risks of environmental hazards, terrorism threats, natural disasters and extreme weather conditions.

Fewer Sellers Cut Home Prices, for Now

Trulia reports a decline in the number of home sellers lowering their asking prices at least once to 21 percent as of Jan. 1 from 22 percent in December and 25.6 percent in November, marking the lowest level since April. The average discount held steady at 11 percent.

Trulia reports a 50 percent drop in cities with price reductions of 30 percent or more on average, with only seven major cities reporting such cuts at the beginning of the month. Regionally, 20 percent of listings in the South and 22 percent of listings in the West, Midwest, and Northeast experienced price cuts.

Trulia CEO Pete Flint says, "I expect reductions to rise again as the tax credit extension deadline approaches but I also expect mortgage rates to rise, so they may cancel out the savings [from list price reductions].

Source: Reuters, Lynn Adler, (01/12/10)

Fed: It's Time the Market Stands on its Own

Fed: It's Time the Market Stands on its Own.  April 1 will be the first day that the Federal Reserve will end its debt purchase program and allow the struggling U.S. mortgage market to operate unassisted. As a result, the Fed believes mortgage rates will rise about three-quarters of a percent to about 6 percent, Boston Fed President Eric Rosengren said Saturday.

Fear of a worldwide perception that the U.S. government is simply printing money to use to purchase mortgage-related securities is a big reason the Fed has pulled back, analysts say. If that fear caused a sell-off of U.S. government bonds, it would push borrowing costs substantially higher and derail the economic recovery.

"We are still in uncharted waters," Fed Vice Chairman Donald Kohn said in an unrelated speech Saturday. "We will need to be flexible and adjust as we gain experience."

Source: Reuters News, Pedro Nicolaci da Costa (01/08/2010)

Analyst: Housing a Good Investment in 2010

Analyst: Housing a Good Investment in 2010.  Forbes housing reporter and analyst Francesca Levy makes some thought-provoking predictions in the latest issue of the magazine.

She predicts:

• Real estate will be an attractive investment strategy in 2010 with wealthy investors devoting an increasing segment of their portfolios to it.
• Loan modifications will result in more people who should probably be facing foreclosure slipping deeper into debt.
• Cities like Omaha, Neb., and Buffalo, N.Y., which avoided the housing bubble and most of the bust, will be models for cities trying to avoid another bubble.
• Financial troubles in Dubai will ripple through the U.S. luxury market, creating energy in a market that has been stagnant.

Source: Forbes, Francesca Levy (12/28/2009)

Assistance for Landlords-Investors in Benton-Franklin Counties

A local rental association has been established, called the "Benton Rental Owners Association" or BROA.  This is a landlord's group with great hotline info and monthly meetings keeping landlords up on all the most recent laws, rules and regulations.

For additional information call the BROA office at 783-1800. They also have a website you can visit for additional information www.WaApt.org/broa.

Kennewick-Pasco-Richland Turning in Best Jobs Performance for the Nation

The Federal Bureau of Labor Statistics has compiled metro employment numbers for November, with Kennewick-Pasco-Richland turning in the best jobs performance for the nation: 3,600 jobs added year-over-year. 

Tri-Cities Market Update

Stats for 4th quarter closings from 2003 (as reported by the Tri-City Association of Realtors):

03- 763
04- 809
05- 989
06- 832
07- 811
08- 637
09- 990* (*this number will continue to grow as offices add their closings over the next week that closed in 09)

These numbers prove the strength of the Tri-Cities housing market.

As of today the listing count for the 4 major cities, (not counting outlying areas) is 896. You have to go back to July of 2002 to find that low of number. Until last year the Tri-Cities averaged near 1400 homes for sale since mid-year 2004.

The Tri-Cities, as predicted, is one of if not the most stable economy and housing market in the nation. This trend looks to continue for the foreseeable future.















In 2010 we will see interest rates rise as the national economy continues to improve. As the national housing market improves and people living in rentals here can sell their homes from other parts of the country, we will see even more sales take place then the current pace.