Vancouver WA Real Estate – Market Report May 2010
Homes for sale in Vancouver WA and nearby towns in Clark County in May 2010 continued to see pressure from distressed properties (pre-foreclosures and short sales) and foreclosed properties (bank owned homes) attracting the attention of homebuyers and reducing price pressure on remaining available inventory.
Only a few real estate news sources report the actual level of sales for distressed properties in Vancouver, and we are one of them. Gathering the data ourselves from the local MLS database, the distressed property category (short sales and bank/REO owned) accounted for 35.7% of active inventory; but they were 47% of the Pending Sales for the month of May. This puts Vancouver Real Estate squarely in a buyer’s market with at least half of buyers looking for a great deal.
On the positive side of the equation, several factors have helped stabilize prices (and even helped with a modest seasonal price increase) and promoted a healthier housing market. The first factor has been the modest level of increased purchases in March and April, as buyers were taking advantage of the federal tax credit options for qualified first- and second-time homebuyers.
The second positive has been that the interest rate on qualified homebuyers is solidly below five (5) percent. Each incremental reduction in the loan rate greatly improves the affordability of buying a home. From what we have seen, current rates are indeed at the lowest point in fifty or more years!
The third positive factor helping home prices has been the increasing number of home sales in price levels above $250,000. The positive movement in this segment may not increase real home values, but mathematically it helps median home sales price to firm up or rise slightly.
We are also seeing a very visible pulse in new home construction in all parts of lower Clark County. We live in Felida and at least two home builders have multi-million dollar worth of new homes nearing completion. We also have clients in Camas building a new home, along with 20 other new homes being built! Two key elements we’ve seen driving new construction activity are: 1) building on lots that had been foreclosed on and then sold at deep discounts; 2) buyers who could finance the construction loan with a down payment of 20% or more.
The Vancouver WA MLS local board has recently changed the way they count days on the market and therefore the year-over-year statistics don’t match up well. However, it is our observation that home sellers listing their homes on the market must wait anywhere from 3 weeks to 8 weeks to see traffic and perhaps an offer. If the house is priced above market, the wait could be indefinite.
To see for yourself what real estate is available in Vancouver WA (USA), visit Vancouver WA Homes For Sale.