Leavenworth Real Estate - No Fire Sale

Real estate has been in the national news of late. The National Association of Realtors recently announced that existing home sales are at the lowest point in 9 years.

Sounds like great news for buyers and real estate investors hoping to buy at a low point in the market. It would be, if it were true in Leavenworth and Lake Wenatchee.

This summer I reported a slowdown in the Leavenworth real estate market . At the time we had 135 single family homes for sale and a deluge of newly constructed condos.

Fast forward to this Winter and the Leavenworth real estate market looks a little different. This isn't spin from a rosy glassed Realtor, the real data look very encouraging.

Stealing from Howie Mandel - Let's play Deal or No Deal

No Deal (Inventory is low, demand is high)

Lake Wenatchee waterfront homes

Fish Lake Homes

Riverfront property on the Wenatchee River or Chiwawa River or Icicle Creek

Cabins - almost anywhere

Building lots in Ponderosa or Chiwawa River Pines

Condos at Kahler Glen

Horse property

If you own a property like this and want to sell, please don't hesitate to call. The market demand is high.

Deal (Inventory is high, demand is low)

New construction condos

Condos zoned multi-family

Houses located within the city limits of Leavenworth

Steep land

If are looking for a deal, look here. If you are selling, you need to hire the best agent you can and price your property aggressively.

Leavenworth Real Estate Market Update

The Leavenworth real estate market is made up of a number of different sectors that always seem to be moving in slightly different directions.

The majority of consumers, whether they are local homeowners looking at an increased tax bill or out of town investors, look to the growth of prices to gauge the strength of the market.

Home prices in Leavenworth WA are certainly up. At the end of May the average list price for a single family home in the Leavenworth area (including Lake Wenatchee and Plain) was $518,000. This is the number that tends to excite people and this is the number that most folks see when browsing the internet or looking in local homes magazines.

Of course the number that has more importance is the average SALES PRICE which is what the buyers are willing to pay. Considerably less - $354,000.

But as I said before, this is a tale of multiple markets wrapped up in each other.

The bulk of the Leavenworth real estate market is single family homes under $600,000 that are not on the water. We could even narrow the range to between $200,000 and $400,000, but the story is much the same.

At the end of May 2007 there were 45 of these homes on the market. Looking at the sales data, we have 5.7 months of inventory. More or less a balanced market with neither buyers nor sellers having much of an advantage. ( I would say that generally, home sellers outside the city limits probably have a stronger market that those inside the city, but that data will be saved for another day.) Last year, there were 39 homes on the market with a 3.9 month supply. Though supply does seem to be rising, we did have 63 homes on the market in August and September of 2005, so it is hard to say if this is a short cycle or a longer term trend.

Homes over $600,000 are the luxury segment of our market. In the past year, 6 homes (non- waterfront) sold in this price range and the 13 homes on the market at the end of May represent 26 months of supply. While few of these sellers are highly motivated, it is by any indication a buyers market. (And has been for some time.)

Waterfront homes are a different beast. Generally, these really just include homes on Lake Wenatchee and Fish Lake, and riverfront homes on the Icicle Creek, Chiwawa, White, or Wenatchee Rivers. At the end of May, there were 11 homes on waterfront or 7.8 months of supply. I think this market sector tends to be pretty balanced, despite ever growing price points.

Overall, I see strong demand for vacation homes by westside buyers at prices under $600,000. This continues to be for "cabins" or other vacation homes generally located outside of the city of Leavenworth.

Low Inventory in Leavenworth Homes Market

Moderately priced home sales have really taken off in the Leavenworth Washington real estate market. Today there are only 16 homes under $300,000 and 26 under $400,000. Scarier yet, many of these are small (under 1000 square feet, some under 500) or have other issues that may make them difficult to get a loan for. (Lack of septic and electricity, half interest in property, leased land etc.) When we look at the list without these homes we see 9 under $300,000 and 19 under $400,000. If you are a home seller and thinking about waiting until spring to sell, maybe you should re-think your planning. If you are a buyer, you have a dilemma: Buy now despite the lack of choices or buy later and be prepared to pay a premium as prices continue to go up?

Leavenworth 3 bedroom home prices explode!

I was running some numbers today for a Windermere publication that comes out quarterly. It uses average prices of sold 3 bedroom homes as a gauge of the market. For the first half of 2006, the average 3 bedroom home in the Leavenworth area. (including Plain and Lake Wenatchee) was $375,000. For the second half it is up to $458,000. I double checked. Those numbers represent a 22% increase in a 6 month period! It looks like buyers in the Leavenworth market haven't been bothered or effected by negative press about either a "soft landing" or a "bubble bursting". Leavenworth and Lake Wenatchee continue to remain popular as a destination for vacation homes.