The Yakima real estate market is still trying to find its way after the market collapse. While small price gains have been made, it is slow going. Unemployment concerns and new housing permits are still weighing the market down. At the very least, buyer confidence has been shaken. Fortunately, the worst appears to be over. It is just a matter of time before the market gets back to pre-collapse numbers. Experts are expecting Yakima real estate to make great strides through the rest of the year.
The current median home price in the Yakima real estate market is $157,700; well below the national average of $203,867. Yakima home prices grew at a rate of 2.9 percent over the last 12 months. Over the last three years, however, the Yakima housing market has seen prices decline at a rate of 8 percent. While the Yakima housing market was spinning its wheels, the national market grew 6.7 percent over the course of a year, and 28.8 percent over three years. These trends only added to the post-recession slump for the local Yakima market. On a more positive note, home prices have gone up over the last calendar year, and there are signs that this may be a trend that continues into the future.
While Yakima home prices may have sputtered over the last three years, there has been some positive news on the equity front. Incremental equity gains have been realized since the collapse. These gains, however small, give local homebuyers confidence to explore the market. Yakima real estate investing should see an uptick as well. The following highlights how much equity has been gained relative to the year of the purchase:
- Homes purchased in the Yakima housing market one year ago have appreciated by an average of $6,816; whereas the national average was $15,753 over the same period.
- Homes purchased in the Yakima housing market three years ago have appreciated by an average of $19,106; whereas the national average was $53,565 over the same period.
- Homes purchased in the Yakima housing market five years ago have appreciated by an average of $14,678; whereas the national average was $47,444 over the same period.
- Homes purchased in the Yakima housing market seven years ago have appreciated by an average of $23,723; whereas the national average was $17,200 over the same period.
- Homes purchased in the Yakima housing market nine years ago have appreciated by an average of $42,679; whereas the national average declined by as much as $100 over the same period.
While the Yakima real estate market stayed strong at the onset of the collapse, it has failed to keep up with the national average over the past five years.
Much of the stalled growth in the Yakima market has been due to uneven employment numbers. Over the last twelve months, Yakima has added 1,400 new jobs – up 100 from the previous month. Employment is growing, and appears to be trending upwards. A bigger concern deals with the high level of unemployment. The current Yakima unemployment rate is 9 percent. This figure is almost twice as high as the national average. However, today’s number represents a decrease of 1.3 percent in the last year. Unemployment has improved more in Yakima than on a national average. Perhaps even more importantly, the one year job growth rate has reached 3.5 percent. The national rate is 2.1 percent, and suggests that Yakima is adding jobs at a healthy rate.
Over the last twelve months, Yakima has added 149 new housing permits. The current level of new construction is 15.3 percent lower than the long-term average. Single-family housing permits for Yakima have dropped 23.1 percent. With a lack of new houses, current inventory will become stale and buyers will begin to look elsewhere. Before the market collapsed, Yakima far exceeded national new housing permit numbers every year, in some cases by as much as three times. Since the middle of 2009, Yakima has been below the national average every month.
According to RealtyTrac, Yakima real estate investing will have approximately 50 foreclosures to work with. While that number may not seem all that high, it is considerably higher than this time last year. both auction foreclosures and bank-owned foreclosures saw sizable upticks, as they now represent 48 percent and 52 percent of the market respectively. Nonetheless, these homes will offer great spreads for the entire Yakima real estate investing community. The median sales price of a non-distressed home was $166,000. The median sales price of a foreclosure home was $99,950, or 40 percent lower than non-distressed home sales. That is a savings of more than $66,000 per home.
The Yakima real estate market has hit the bottom, and is making its ascent upwards. Unemployment and job growth appear to be the two major hurdles that stand in the way. With a high level of affordability and room for potential, Yakima real estate offers plenty for potential homebuyers. If current list price numbers are any indication, Yakima is poised for an encouraging year.
Yakima Real Estate Market Summary:
- Current Median Home Price: $157,700
- 1-Year Appreciation Rate: 2.9%
- Unemployment Rate: 9%
- 1-Year Job Growth Rate: 3.5%
- Population: 93,257
- Median Household Income: $41,917