North Notes
Spokane North Rotary Club Bulletin
February 27, 2017
      Eric Johnson and Nancy Hanson volunteered to be at the March Holmes Golden Hero Awards ceremony.  Thanks!  
Update for Real Estate Market
          Last weeks’ speaker was our very own Eric Johnson from Coldwell Banker Tomlinson!   We were updated on the latest real estate market statistics. 
           Eric explained how we are feeling the effects from the recession and the under-production of real estate units that were a result. 
           During the approximate 6 years of one third to one half of the production of new housing units the population in the Spokane market area was still increasing at an average of .8 to 1 percent.
           Through the worst of the recession  households constricted out of necessity including working age children living at home longer or similar extended family arrangements. 
           The resurging employment market is causing this trend to reverse and, along with native population growth, household growth is happening exponentially. 
            To date there is less than 3 months of inventory on the market for sale and a 1.9% vacancy rate in the rental market. 
            Normal rates are typically 5-6 months of inventory and 5% vacancy rates. 
            The lack of inventory is causing prices and rents to rise together, a phenomenon not seen in the markets for over 40 years. 
            Price pressure is going to be strong in 2017 with likely appreciation in high single digits. 
            Eric explained that interest rates can rise because the real estate market follows the employment statistics. 
           “Affordability compared to most other densely populated counties is still very good”.  
           Market pressures include Boomers downsizing, Millenials entering the market, Gen X laterally shifting their equity to a nicer home with a slight increase in payment and investors are tired of a “rigged” stock market. 
           “If your buying above 500k and selling below 300k there are some great opportunities out there” Johnson said. 
           The main consternation is for the people moving within the market under 300k, they don’t want to sell without having some place to move too which compounds the inventory issue. 
           Bottom line is that it is a great time to sell with a high probability of multiple offers and it doesn’t look like it will be slowing down possibly for the next 2-3 years depending on employment according to Eric.
The bulletin producers:
Bulletin editors: Eric Johnson and Sandy Fink
Program coordinator: Brad Stark