Brokers: Unique county weathers market storms

October 25 , 2007

The national housing market may presently be in a slump, but in Wahkiakum County, things are looking a bit sunnier.

A survey this past month of real estate firms showed that it different persons had different points of view.

According to Diane Garrett of Windermere Realty, from March 2006 to September 2007, only 76 homes were sold. “We’ve seen a reduction in prices” she said.

October, however, has been a much better month. There is a tremendous amount of inventory. Houses are selling and people are finding what they want, she said.

According to David Nelson, broker and owner of Cathlamet Realty West, we are not suffering like the rest of the country, because the properties are not devaluating. The values are holding and the prices of real estate in Washington are still on the rise.

Interest rates will always affect what happens with home prices, Nelson said. When they are low, the market is better. When they go up the market slows. But right now, interest rates are low, so why the decline in home sales?

Right now, the market is slow; slower than it has been in a long time, Nelson said. People come in and brokers can tell by their attitude what will happen. They (the buyers) feel that waiting six months to a year; they can get a better buy on their purchase.

People also come into Wahkiakum County looking for repossessions. “We don’t have many of those in Wahkiakum County, hardly ever do.” Nelson said.

The biggest trend Nelson has seen through the years is that fewer people are willing to buy an old house, especially in the last three years.

What is frustrating for buyers coming to the county, Nelson said, is there really isn’t a lot of selection in certain price ranges. People will often buy what is available even if they aren’t very happy with it because they need a house.

“What is on the market in a limited market like our area, which is a limited marketing area, there are never very many units in certain price ranges.” Nelson said. People will often come into the area and find something they like, but maybe are unsure, so they will stall or continue to search. When they decide they like the home they saw in their price range and go back to buy it, it is already sold.

In the last few years, the majority of people moving in are retirees, but that is because of the availability of jobs.

“Less and less jobs, we have less and less family people here,” he said.

Because Longview’s employment base is growing, that could mean more people moving in to the area. Nelson, who calls himself an eternal optimist, sees this as a positive change.

"The future looks rosy," he said.

WhenLongview's economic base expands, we get a spill over from those workers that will come here for different reasons.”

Broker Kay Cochran at Lower Columbia Realty is optimistic about the local housing market.

“There is a significant inventory of property,” she said on Tuesday.

There are listings in the low end of prices and go upwards of more than $400,000, shes said. The waterfront property on Puget Island will sell fairly high, but property on the inside of the dike that can go either way, and the more rural areas with a view can go for an extremely high amount.

Further, the current state of the regional market hasn’t kept people from listing their property or spending what they feel is fair. Negotiations are the norm in the selling of a home. “Buyers want something to give and sellers want to be able to give something,” she said.

Sellers are confident that there is a market out there, she said.

"What we are seeing is buyers listening to the national news, and they are waiting for prices to drop," she said. "It likely won’t happen in a major way in the area. The county has not really followed the trends of the nation. It’s a mixed marketbecause there is a large inventory of homes; there is a lot of competition. Buyers will look for the best buy.”

There is always a time when brokers will see fewer sales, but when they start happening again, they boom. Buyers become cautious. Right now, Cochran said, buyers are thinking there may be a deal out there. That may or may not happen in this area.

"We live in a very diverse area," she said. "Some people will come in with a specific idea of what they want, and while looking at different houses with a broker will change their minds on what they are looking for. It’s not like the bigger metropolitan areas where people will find the same house with the same layouts.

“We are a one size fits all community. This is an ideal place for all to live. We have so much going for us here. The big city is an hour and a half away, and the beach is an hour away. We have absolutely the best of both worlds!”