MARKET SPOTLIGHT: Pacific Northwest
Properties with Foreclosure Filings Qtr-Yr Boise City, ID Portland-Vancouver-Hillsboro, OR-WA Seattle-Tacoma-Bellevue, WA Q1 2018 208 764 820 Q2 2018 188 708 782 Q3 2018 231 513 799 Q4 2018 226 746 1,139 Q1 2019 98 687 820 PROPERTIES WITH FORECLOSURE FILINGS
from Washington state. The rest are coming from all over. For a small area, there’s been a lot of in-migra- tion and not a lot of out-migration.” And that population increase has been putting pressure on the hous- ing market for a long time. Holley noted that prices on existing homes have been rising an average of 11.4 percent per year since 2011, while prices for newly constructed homes have seen an annual average of 9.3 percent over the same time period. While it has some of the fast-
the investment business of small investors, the increased demand for housing in the metro area is being satisfied by another source — commercial developers building multifamily product. “I’m amazed at the number of apartments being built,” Holley said. “Multi-family dwellings, three or four stories, 100 up to as many as 200 units. It seems to be occur- ring all over the city. Much more so than in the past.” Still, investors are doing what they can to find deals despite the hard- ships the market is throwing at them. “There are still off market deals out there,” Williams said. “They’re out there but investors are digging hard for them. Direct mail is still working in this market.” While there is plenty of money
available from hard money lenders to fund deals, there’s more money out there than there are houses. And corporate investors are taking up whatever excess inventory there is at the entry level price point. “Local investors aren’t buying at the foreclosure auctions because the institutional investors are still taking the few that come up,” he said. “They buy them at the foreclosure auction, fix them up, and rent them out.” According to data released by AT- TOM Data Solutions, there were only 98 properties with foreclosure filings during the first quarter of 2019, down 56.64 percent from the previ- ous quarter and down 52.88 percent from the same quarter of 2018. “It’s too hard to make flipping work,” Williams added. “Individual investors who are willing to market
BOISE CITY, ID
PORTLAND-VANCOUVER-HILLSBORO, OR-WA
SEATTLE-TACOMA-BELLEVUE, WA
Properties with Foreclosure Filings
Boise City, ID Portland-Vancouver-Hillsboro, OR-WA Seattle-Tacoma-Bellevue, WA
1,200
1,139
900
Boise City, ID Portland-Vancouver-Hillsboro, OR-WA Seattle-Tacoma-Bellevue, WA 2010 $135,000 $222,000 $284,148 2011 $124,229 $200,000 $244,605 2012 $141,314 $211,000 $258,000 2013 $167,887 $242,701 $295,000 2014 $174,563 $260,000 $315,000 2015 $186,202 $280,000 $340,000 2016 $202,488 $315,000 $368,000 2017 $221,000 $347,000 $410,000 2018 $250,000 $372,000 $449,950 MEDIAN SALES PRICES est-rising home prices, the area’s in- comes are not keeping pace, despite an unemployment rate of 2.4 percent as of April 2019. As Holley explained, the state is a relatively low wage area with cheap labor, much of which is not well educated nor highly skilled. While it might be cutting into
820
820
799
782
764
746
708
687
Year
600
513
SEATTLE-TACOMA-BELLEVUE, WA
PORTLAND-VANCOUVER-HILLSBORO, OR-WA
BOISE CITY, ID
300
231
226
208
188
Median Sales Prices
Seattle-Tacoma-Bellevue, WA Portland-Vancouver-Hillsboro, OR-WA Boise City, ID
98
$449,950
2018
$372,000
$250,000
$410,000
0
2017
$347,000
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
$221,000
$368,000
2016
$315,000
$202,488
are still finding success. But we’re not on the scale with the larger markets like Memphis or Indianap- olis. We don’t have the population.” For all of 2018, only 3.5 percent of total home sales were flips, ATTOM reported. That is up 2.7 percent from the year before, but down 12.5 percent from 10 years ago. Proper- ties that were flipping were bought for a median purchase price of $211,639 and sold at a median price of $249,844 for a gross return on in- vestment of 18.1 percent and taking
an average of 215 days to flip. “We’re seeing some investors getting them under contract and then putting them back on the mar- ket selling them on the MLS with- out putting anything into them.” As of the first quarter of this year, ATTOM reported that only 4.8 percent of Boise homeowners were seriously underwater while 27.7 percent were equity rich. The median home price in the Boise metro area for the quarter was $254,379, up 1.6 percent from the previous quarter and a 5.6 percent
increase from a year ago, a 110 percent increase from the area’s post-recession bottom in the first quarter of 2011.
$340,000
2015
$280,000
$186,202
$315,000
2014
$260,000
$174,563
$295,000
PORTLAND: A GOOD PLACE FOR BUSINESS For people looking for a low- er cost of living and a busi- ness-friendly environment to find jobs, Portland is a good alternative. That includes doing business as a real estate investor. In 2018 Forbes named it the third
2013
$242,701
$167,887
$258,000
$211,000
2012
$141,314
$244,605
$200,000
2011
$124,229
$284,148
$222,000
2010
$135,000
26 think realty housing news report
august 2019 27
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