The Lacey Washington Real Estate Market Report The real estate market in Lacey, and in all of western Washington, has maintained much of its strength throughout the current economic downturn. While we have seen our share of foreclosures, property values have held up very well. When lumping all segments of the market together, we have seen a decline of approximately 12% since the fall of 2008. If you remove properties priced over $300K, and vacant land, you will find that home values have actually only declined by 8-10%, with new construction holding up better than existing homes. Lacey has experienced a very active real estate market this spring, which I believe is attributable in large part to JBLM. The "micro" economy of Fort Lewis and McChord AFB continues to bring stability to the Lacey economy. Our real estate market has several things going for it. Number one being the growing population of Ft. Lewis and McChord AFB (Joint Base Lewis-McChord). The current population of JBLM is approximately 37,000 active duty personnel. Fort Lewis currently has about 30,000 assigned, and McChord AFB has 7000. There is also a (now confirmed) rumor that two brigades, totaling another 9000 or so soldiers, will be moved from Alaska and Germany in the next year. This number of personnel, with turn-over of as much as 20% per year, will continue to dominate the real estate market for the foreseeable future. In addition to the military impact on the housing market, the seat of the State Government is located in Olympia (adjacent to Lacey), employing several thousand people. We are also seeing major corporate relocations to Washington. The availability of the protected waters of Puget Sound has prompted companies like Target, Costco, and Home Depot to locate their west coast distribution centers in Lacey…bring lots of money and jobs to the community. I have to mention Employment in this housing market report. The current unemployment rate in Washington is just below 9%. It is somewhat lower in the Puget Sound region (approx 7%). The reasons for this low unemployment (in comparison the other parts of the country) were spelled out in the previous paragraph. Foreclosure Listings In Lacey WA, Are You Searching For Foreclosures And Bank Owned Real Estate In Lacey Washington? Have you been searching for foreclosure listings in Lacey WA and surrounding communities? I offer two types of foreclosure searches (not counting the computer generated email alerts), the first is a manually generated database created in our office and updated daily. The other is an automated tool that pulls foreclosure listings and short sales from the NWMLS database, and it is updated as foreclosure listings are added or their status changes in the MLS. Both of these options are far superior to the data aggregator services that pull info from county and tax records…and then never remove the information. I offer the best search tools available to find foreclosure listings and foreclosed homes for sale in the Lacey Washington area. If you would like us do daily searches for foreclosure listings and bank owned properties, please fill out one of our online forms. We are already doing the work, you may as well get the benefit of our first hand knowledge of every foreclosed and bank owned home in Lacey WA and the surrounding area. About the Tax Credit: Existing home sales in Lacey have been off some since the end of the tax credit in April 2010….but not off as much as other markets around the country. The FANTASTIC news for our real estate market (and for our soldiers and airmen assigned to JBLM) is that the tax credit has actually been extended for service members who have been stationed overseas or deployed….those who fit this category will qualify for the tax credit until June of 2011. Is a Housing Shortage in the cards? This is going to sound crazy…but it is coming from someone who is out in the market showing houses almost daily…and the answer is yes. While we do have a fairly large inventory of homes on the market, most of what is sitting on the market is either over priced, or it has been very well picked over. Of the current inventory, there are lots of fixers, lots of properties with problems, and not so many that are appealing and turn-key. New construction is no longer keeping up with demand. The banks are not willing to let builders get ahead of themselves, and new homes that are well priced and in desirable neighborhoods, are selling as fast as they are built. Pre-sales (purchase of a home pre-construction) are becoming the only option for buyers who are looking for new homes with nice features and amenities…the timeline for contruction is typically 3-5 months. Going back to the numbers of new personnel coming to the military bases, along with the huge number re-deploying, and you can read the writing on the wall. Throw a couple of thousand buyers into the Lacey area real estate market, and the 1500 or so homes on the market (once you take out the junk) doesn’t leave much to choose from. I have been and remain optimistic about real estate as an investment in the Lacey area. The population of the Military bases, and the resulting potential homeowners, will continue to give strength to our real estate market. Our geographic location on the I-5 corridor leaves us in the path of growth…which will continue for years. Residents, home buyers, and home sellers have a lot to be thankful for….Strong housing market, strong and growing local economy, and steady population growth all make Lacey a great place to invest in real estate and home ownership. |