The Whitman County housing market experienced a 31 percent decrease in home sales in the past year and property values continue to diminish in a struggling economy.
“They always say that land is a good place to invest your money,” homeowner Patrick Swenson said. “But at this point it feels more like a burden than a benefit.”
“I don’t have much trouble paying my mortgage despite the recession because I’ve managed to stay employed,” Swenson said. “But it seems that the more I pay for the house the less its worth.”
Swenson is not alone. Home resale values around the state have declined by 4.2 percent according to the Washington Center for Real Estate Research. With current home values in the state averaging $248,900, a homeowner looking a resell a home at this price will have lost more than $1,000 in the current housing market.
“Markets throughout Washington are experiencing declining real estate values because of the recession,” Glenn E. Crellin, Director of Washington Center for Real Estate Research, said. “However, buyers of more expensive homes are taking advantage of bargain prices on those homes at a time when first time buyers have exited the market because of the expiration of the tax credit programs.”
When the recession hit and the economy and housing market fell from its record setting highs, it left many buyers with mortgages they could not afford. After foreclosures and seizures began it left a high rise in home availability, but unemployment rates forced the demand for homes to decrease.
“A home is one of the largest and most important investments a person will make in their lifetime,” homeowner and paralegal Mike Sullivan said. “When the recession hit and people started losing their jobs it makes buying a new home more of a risk than a dream.”
“My job security is fairly high so I had less of a worry buying my home,” Sullivan said. “With unemployment rates being as high as they are, if my job was less secure than it is now then I couldn’t imagine buying a home. No job means no house payments and no house payments means no house.”
The effects of the recession also directly affect the apartment market. Many of WSU students live off-campus in apartment complexes and duplexes. However the issue may appear less severe to the student body.
“The issue we are facing with the recession is in terms of vacancy,” Owner of DRA Real Estate/Rentals Kathy Wilson said. “When people can’t afford their homes they often have to downsize to smaller more affordable apartments and rent out their homes instead of selling them at distressed prices.”
This allows students to rent homes at rates that can be lower than apartment complexes. Causing an increase in apartment complex vacancies forcing leasers to lower rents in order to attract renters and decrease vacancy. This cycle can consequently make newer apartment complexes difficult to operate profitably.
Although many WSU students will soon have to face the reality of the recession and current housing market, they may have a better opportunity to succeed in purchasing a home in a recovering economy.
Outline
I. Lead
a. Homeowner (Swenson)
b. His struggle and its relationship to the trend addressed
II. Statistics of current house market in Washington
a. Glenn Crellin
b. Explanation and diagnosis of issue
c. Further explanation of the cause of issue
III. Homeowner (Sullivan)
a. Alternate perspective on recession and house market
IV. Relevance to WSU students renting apartments
a. Kathy Wilson
b. Effects on student population
V. Conclusion
Sources
Glenn E. Crellin
crellin@wsu.edu
Kathy Wilson
509-334-7700 (ext. 22)
drarentals@completebbs.com
Mike Sullivan
360-961-4537
Sulli_m@hotmail.com
Patrick Swenson
206-725-1662
PSwenson@comcast.net
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