The Real Estate Business Cycle and the Tri Cities Washington Real Estate Market

The economic market can be a time that instills a sense of confidence for those anticipating the purchase of a home. However, according to the business cycle the economy can also slow down.

During periods of decelerated growth there is less money available for spending on home purchases. Sometimes during these slow times people will still need to sell their homes, and this can be to the advantage of those looking for a new home.

As the cycle goes around, a good supply of available homes and a low level of buyers can slow appreciation values of property. In such a situation prices for houses are likely to fall. The purchase of a home during a slow period can pay off when the cycle swings around and the economy strengthens.

The timing of the real estate market is difficult to determine. As with most things in life – there are no guarantees. Also, it is usual for interest rates to rise when the economy is depressed as wages are not able to keep pace, and opportunities for working overtime or making bonuses tends to decrease too. A situation of high interest rates and low income can disqualify many people from being in a position to purchase a home.

Like all cycles, the business cycle is about change. To make the most of this cycle, save your pennies to be in the best position that suits you and your family's property needs.

Having said this, the real estate in the Tri Cities Washington area is on the down swing of the cycle.  That being the supply of homes is greater than buyers wanting them.  Simply said, the Tri Cities needs buyers!  As of April 18, 2007, our 2007 contracts written to date are 995, as compared to 950 in 2006, and 862, in 2005.  The total closing as of today are 774, as compared to 830 in 2006, and 826, in 2005.  Average sales prices are also down.  March, 2007 average sales price is $181k, as compared to $186k in February, and $186k in January. 

Now is the time to get a great deal on Tri City Wa real estate, so search our MLS today for a property that meets your family and/or professional specifications.

Related Resources:

• Buy Today for Resale Tomorrow
• Home Buying Process

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