Current Market

Monthly Summary
Sold Volume
Sold Units
Sold Average Prices
Home Inventory
Home Affordability
Lending Rates and Options

Monthly Summary

May 2008 – May sales were up 16% over April 08 but were 25% less than last years record sales for May of 2007. Residential sold units were 30% less than May 07 and only up 6% from April 08. Not good news. The only good news is that average sales price continued to increase and at $183,576 is 9% above last year. Listing inventory continued to grow and at the end of May reached 15.9 months of inventory to sell - up 44% from May 07. Average sales prices continue to defy gravity and the laws of supply and demand. Unless we see a major surge in sales in June, with this much inventory, I would expect prices to start to decline. This is definitely a Buyers market.

Total Monthly Residental Sales Volume in Yakima County MLS

Monthly Sales Units in Yakima County MLS

Monthly Average Home Sales Prices in Yakima County MLS

Yakima County MLS Home Inventory - Months to Sell

Home Affordability

Median Sales Price Of Single-Family Homes Affordability

Location	2004	2005	2006	2007	2008 1st Qtr	% Change Past Year	Affordability Index %
Yakima,WA	$129,900	$133,900	$136,500	$170,600	$148,400	109%	76%
United States	$195,200	$219,000	$221,900	$206,200	$196,300	92%	100%
Northeast	$254,400	$281,600	$280,300	$261,700	$280,000	103%	143%
Midwest	$151,500	$168,300	$164,800	$156,300	$142,700	92%	73%
South	$171,800	$181,100	$183,700	$171,700	$164,200	92%	84%
West	$289,100	$340,300	$350,500	$324,100	$296,300	88%	151%
Boise, ID	$135,900	$147,000	N/A	$198,000	$193,400	95%	99%
Chicago, IL	$240,100	$264,200	$273,500	$261,000	$249,600	93%	127%
Denver,CO	$239,100	$247,100	$249,500	$230,100	$223,500	93%	114%
Tri-Cities, WA	$147,600	$154,400	$156,100	$172,400	$163,700	100%	83%
Los Angeles, CA	$446,400	$529,900	$584,300	$509,700	$459,400	79%	234%
Portland, OR	$206,500	$244,900	$280,900	$290,500	$286,600	99%	146%
Salt Lake, UT	$158,000	$173,900	$203,000	$229,100	$225,700	104%	115%
San Francisco, CA	$641,700	$715,700	$736,800	$777,300	$701,700	94%	357%
Sea/Tac/Bel, WA	$284,600	$316,800	$361,200	$377,500	$372,300	98%	190%
Spokane, WA	$128,500	$156,400	$184,100	$194,100	$186,800	103%	95%

The most often used indicator of housing affordability is the comparison of median sales price of single-family homes. This measure give you a "good" indication of what homes are selling for in various metropolitan areas and regions across the United States. Additionally, each quarter I will list the "% Change over the same quarter Last Year". This measure tells you how much home prices are increasing or decreasing over the same quarter in the prior year.

Finally, I have added a measure called the "Affordability Index" which tells you at a glance what % each areas median home prices are compared to the United State average. I have also included four years history to show the change in home selling prices over these years.

As you can see Yakima is one of the most affordable areas in the nation at 76% of the national average. However, in the first quarter of 2008 prices increased at the rate of 9% over the same quarter last year making Yakima the number one market in the United States for price appreciation. Great news, if you want to sell your home and yet for buyers home prices are still very affordable.

Buying real estate in Yakima is a sound investment as Yakima homes values have distance to catch up with values in the West and the nation as a whole. Additionally, the chance of real estate values declining in Yakima is minimized by the fact that they are already at regionally and nationally low levels.

Lending Rates and Options in the Yakima Valley

In the Yakima Valley there are numerous options to obtain home financing. Listed below are some of these businesses. In these days following “subprime” lending, it is critical that you establish a relationship with your lender and give him adequate time to work with you. Lenders can give you a variety of options and help with ways to improve your credit situation, pre-qualify for a loan and even help arranging and understanding your budget. An early visit to your lender of choice will help you prepare whether you are buying or selling a home.

Apple Valley Mortgage - Yakima - 509-972-0333

Catholic Credit Union - Yakima - (509) 248-2960

Golf Savings Bank – 509-965-5161

Merit Mortgage - (509) 457-1922

National City Mortgage - (509) 453-3100

Northwest Farm Credit Services– loans for farms 10 acres to 400 acres+
Yakima – (509)-225-3200, Sunnyside – (509)-836-3080

Q Point Home Mortgage Loans - (509) 575-4400

Yakima Federal Savings and Loan Association - 509-248-2634

Yakima Valley Credit Union - (509) 248-1720

Lending Rates – Conforming Loan

	May 2008	April 2007	April 1990
30 Year Mortgage Rates	5.99%	5.80%	9.90%
15 Year Mortgage Rates	5.56%	5.40%	7.40%

Bankrate.com expects rates to increase slightly over the next 35 to 45 due to inflationary concerns and the slumping economy.

3-Month Trend (Mortgage Rates)

Mortgage graphics from bankrate.com