Spokane's Aging Population

According to Spokane's Journal of Business the number of Spokane County residents who are between the ages of 40 and 54 in Spokane County more than doubled between 1980 and 2005, far outdistancing growth in the number of residents in other age brackets.

In 2005, 34,200 people between 45 & 49 lived in Spokane County, 119% more than 25 years earlier. In the range from 50 to 54 the number of people was 31,300, roughly double that of 25 years ago.

Another trend that Spokane is experiencing is increased housing cost. With the average home hovering around $200,000, it is getting more and more difficult for Spokane's residents to find affordable housing especially after they retire and need something that is less expensive. Clearly, as we age we continue to have health challenges that affect the type of housing selected.

One solution, according to Dave Cecie of Select Homes Northwest, is to consider purchasing a manufactured home. Over the past 6 years, Select Homes which has developed land-home packages with manufactured homes has sold numerous homes. "Our most common demographic for these homes is the 55+ age group", says Cecie.

Last year, one of my own clients purchased a Select Homes package consisting of a manufactured home designed with the look and feel of a log cabin, a 3-car shop all on a 10 acre parcel. "This isn't your father's manufactured home", says Cecie. "These homes are built in a factory with the type of precision you would find in a cabinet shop. The lumber and other materials are not exposed to the environmental elements like rain and hot temperatures that cause boards to warp. The level of the production quality has to exceed that of site-built homes because these homes are exposed to high winds just in transportation from the factory to the site."

I personally visited a manufactured home factory this past winter and was amazed at the quality materials from companies like Owens Corning, Whirlpool, and others that go into the finished product. The walls were true 2x6 construction and the cabinets were as good as anything in the site-built homes being put up in Spokane county. Additionally, there were upgrades available like granite counters, stainless appliances and jetted tubs.

Finally, I went to a development in Sisters, Oregon built with one and two-level manufactured, factory built homes. The exterior of these homes when constructed with standard 2 car garages and dressed up with brick, cultured stone and cedar looked as good or in often cases better than their site-built counterparts. In fact, if someone hadn't told me they were manufactured homes, I would never have guessed.

Needless to say, my total perspective on manufactured homes has changed considerably over the past year. You may want to check out the virtual tours of the homes I visited yourself on the web at www.fuquahomesdc.com

How's the real estate market?

One of the most frequent questions I get these days is “How’s the real estate market?” It’s almost like walking down the street and having someone say “Hi, how are you doing?” I suppose the most accurate answer is, “it depends”. What is good for one person isn’t necessarily good for another. Are you interested in buying a home for your family that you are going to live in for an extended period, or are you considering purchasing a property to quickly sell for a profit? Maybe, you are asking this from the perspective of the majority of my clients who are adding their homes to the growing inventory of available homes for sale in our county. Again, it depends on your overall strategy, goals and plans.

Personally, I like the real estate market we are in. Maybe not as well as the one we just came from like in 2005 where values were climbing vertically and homes were selling sometimes in a matter of hours. However, I believe that real estate markets need natural corrections in order for newcomers to be able to get in on home ownership and for existing home owners to be able to move up to a nicer home.

Statistically, the number of homes sold through the local Multiple Listing Service (actual closings) for the first quarter of 2008 is down by about 35% from the first quarter of 2007. As of tonight, April 20, 2008 at 10:47pm, while I am writing this there are 3,422 available active homes, condos and manufactured homes on the market without an offer on them in the Multiple Listing Service for Spokane County, if you add another 10% for all the for sale by owners that brings the rounded number 3,750. According to a recent survey conducted by the local MLS this is about a 20% increase in inventory versus last year.

It isn’t time to panic. It is time for patience. As many of you know, we have just come through what is likely the longest winter that I have ever or (hopefully) will ever experience. Add to the equation the reduction in the number and type of lending programs available to buyers and it is highly likely that the number of real estate transactions in our county will drop in 2008 versus 2007.

Clearly, if you are in the real estate market as a seller or a buyer or you intend to enter the market, you want to do so with a clear well-defined plan. There are a lot of people whether they are real estate agents, lenders, or the media who are either spinning their version of the market, sensationalizing the market, or just telling you what they think you want to hear.

I am here to help you decipher the rumors from the truth and assist you in making the right financial decisions. Please, post your sincere questions or comments to this blog. I welcome you to this discussion forum.

Ron McIntire
Top 15 Realtor, Spokane County 2007
Owner Assist Realty
Co-Founder, SpokaneByOwner.com
Licensed Loan Originator – Acceptance Capital