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August 31st, 2019 by Marco Santarelli
How is The Wenatchee Real Estate Market 2019?
Buying real estate in Wenatchee can be a worthy investment opportunity. If you are looking at investing in the Wenatchee real estate market in 2019 as a potential investment opportunity, you must read till the end. Wenatchee is a city in north-central Washington State. It is ignored by investors attracted to the hot market in Seattle, though that has cooled of late.
Yet it is the smaller, stable markets that often provide the best overall value for investors. Let’s learn more about the Wenatchee housing market before we get to the top ten reasons to consider Wenatchee real estate investment. Wenatchee is the largest city in Chelan County, Washington. Its population is around 35,000, up several thousand from the 2010 Census.
The Wenatchee housing market is a little larger than this, since it encompasses the town of East Wenatchee, home to around 13,000 people. Both towns sit where the Wenatchee and Columbia rivers meet. The larger metro area is home to a total of seventy thousand people.
Seattle is several hours to the west over the mountains, while Spokane is a long drive to the east. Is Wenatchee going to be one of the hottest real estate markets for investors in 2019? Let’s take a deep look at the latest Wenatchee housing market trends to come to a conclusion.
Wenatchee Real Estate Market Forecasts 2019 & 2020
According to Zillow, the median home value in Wenatchee is $300,600. Wenatchee home values have gone up 7.6% over the past year and Zillow’s Wenatchee real estate market prediction is that the prices will rise 3.5% within the next year. The median list price per square foot in Wenatchee is $224, which is lower than the Wenatchee Metro average of $252.
The median price of homes currently listed in Wenatchee is $349,900 while the median price of homes that sold is $301,600. Here is the Wenatchee real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.5% till July 2020.
Wenatchee Housing Market Forecast 2019 – 2021
The Wenatchee housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Wenatchee housing market trend prediction is 81%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Wenatchee, WA is 81% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Wenatchee, WA Real Estate Forecast.
Wenatchee Real Estate Market Trends
Let us find out how is Wenatchee real estate market doing in 2019. The real estate data by Trulia shows that the Wenatchee market trends indicate an increase of $5,101 (2%) in median home sales and a -7% drop in median rent per month over the past year. The average price per square foot for this same period rose to $224, up from $217.
Trulia has 239 resale and new homes for sale in Wenatchee, WA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Wenatchee for May 1 to Jul 31 was $301,000 based on 165 home sales. Average price per square foot for Wenatchee was $224, an increase of 3% compared to the same period last year. The median rent per month for apartments in Wenatchee for Jul 6 to Aug 6 was $1,675.
Data by Redfin.com shows that the Wenatchee housing market is very competitive. The average sale price of a home in Wenatchee was $355K last month, up 7.9% since last year. The average sale price per square foot in Wenatchee is $203, up 16.0% since last year. Many homes get multiple offers, some with waived contingencies.
Homes in Wenatchee housing market sell for about 1% below list price and go pending in around 18 days. Hot homes for sale in Wenatchee, WA can sell for around list price and go pending in around 6 days.
Wenatchee Housing Market Statistics
There are 204 homes for sale in Wenatchee, WA ranging from $48K to $1.7M on Realtor.com. 18 of which were newly listed within the last week. Additionally, there are 25 Wenatchee rental properties for sale, with a range of $650 to $2.8K per month. In July 2019 the housing market in Wenatchee, WA was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In July 2019, the median list price of homes in Wenatchee, WA on Realtor.com was $364.9K, trending up 2.8% year-over-year. The median listing price per square foot was $195. The median sale price was $349.9K. On average, homes in Wenatchee, WA sell after 55 days on the market. The trend for median days on market in Wenatchee, WA has gone down since last month, and slightly up since last year.
The median list price in Wenatchee, WA is $392,425 on Movoto.com. The median list price in Wenatchee went down 2% from July to August. Wenatchee’s home resale inventories is 108, which decreased 3 percent since July 2019. The median list price per square foot in Wenatchee is $182. July 2019 was $186. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.
Wenatchee, WA Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Wenatchee, WA is $287,298, which indicates that home prices in Wenatchee are well above the national average for all cities and towns in the United States. Single-family detached homes are the single most common housing type in Wenatchee, accounting for 59.87% of the city’s housing units.
Three and four bedroom dwellings are the most prevalent building size and type in Wenatchee single-family detached homes. The city has a mixture of owners and renters, with 57.05% owning and 42.95% renting.
Other types of housing that are prevalent in Wenatchee include large apartment complexes, duplexes, homes converted to apartments and a few mobile homes.
Currently, there are 122 single family homes for sale in Wenatchee, WA on Zillow. Additionally, there are 11 single family homes for rent in Wenatchee, WA. Under potential listings, there are about 2 Foreclosed and 10 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Wenatchee, WA Foreclosures And Bank Owned Homes 2019
As per the foreclosure data by Zillow, the percent of delinquent mortgages in Wenatchee is 0.4%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Wenatchee homeowners underwater on their mortgage is 4.6%.
There are currently 18 properties in Wenatchee, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 28. In July 2019, the number of properties that received a foreclosure filing in Wenatchee, WA was 67% lower than the previous month and 50% lower than the same time last year.
Best Places To Buy Wenatchee Rentals
If you are looking to buy Wenatchee rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Wenatchee real estate and you should be able flip it for a lump sum profit.
When looking to invest in Wenatchee real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Wenatchee investment property should be low. The neighborhoods in Wenatchee must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 17 elementary schools, 11 middle schools, 9 high schools and 7 private & charter schools. Peshastin has a median listing price of $485K, making it the most expensive city. Malaga is the most affordable city, with a median listing price of $304.9K.
Here are the best neighborhoods to invest in Wenatchee rentals because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Wenatchee Rentals?
Now that you know where Wenatchee is, you probably want to know why we’re recommending it to real estate investors. Is it worth buying a house in Wenatchee, Washington? Investing in real estate is touted as a great way to become wealthy.
Many real estate investors have asked themselves if buying a rental property in Wenatchee is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Wenatchee housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Wenatchee but we have collected ten evidence based positive things for those who are keen to invest in the Wenatchee rentals in 2019.
Investing in Wenatchee rentals will fetch you good returns in the long term as the home prices in Wenatchee have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Wenatchee real estate market which can help investors who are keen to buy an investment property in this city.
1. The Relatively Diverse Local Economy
Wenatchee is close to skiing in Mission Ridge, and there is whitewater rafting available in the immediate area. Boating, hiking, kayaking and other outdoor activities attract people from across the state. However, Wenatchee is not dependent on tourism.
As the largest city in the region, it is home to K-12 schools. It has a regional airport with connecting flights to Seattle-Tacoma International Airport. Agriculture and fishing still contribute to the local economy. This has resulted in a growing Wenatchee housing market.
2. The Impact of the Local Economy on Rental Demand
The Wenatchee real estate market has seen steady growth, because it puts people in proximity to services and jobs. However, the local economy doesn’t pay high wages, and the seasonal nature of tourism and agricultural work means many cannot afford to buy a home.
It also results in the five percent unemployment rate, one point higher than the national average. The average income is around 24,000 dollars a year, putting the average home out of reach, too.
3. The Redevelopment Opportunities
One of the best opportunities for Wenatchee real estate investment is to buy one of the parcels left open after the Sleepy Hollow Fire. The city is incentivizing new construction and clean up in the area.
These properties are mostly on the north side of the city. This is aside from the occasional opportunity to pick up a rural property and build a luxury home on the parcel.
4. The Surprising High Tech Sector
The Wenatchee real estate market has seen growth for a surprising reason – cryptocurrency mining. The cryptocurrency industry is attracted to the cheap, reliable hydroelectric power in the area. They’re attracted by power that costs a quarter as much as the national average.
It has led to some people renting offices or buying houses to set up server farmers to mine cryptocurrency. This meant that abandoned fruit warehouses were the ideal Wenatchee real estate investment a couple of years ago. Now machine shops, convenience stores and storage buildings can be rented out to high tech miners.
5. The Impact of Geography
The Wenatchee housing market is affected by geography in a number of ways. It was settled because it was a natural meeting point for people traveling on the two rivers. The floodplains limit where new buildings can be built. So, to, do the surrounding national parks.
For example, the sprawling national forest to the west is almost off-limits to development. Existing parcels can be redeveloped. However, the beautiful views and privacy being miles from your neighbor gives you result in these properties being upgraded from cabins to multi-million dollar homes.
You can find affordable Wenatchee real estate investment properties in Wenatchee proper.
6. The Landlord Friendly Environment
Washington State has a number of things going for it, if you are a property investor. The state doesn’t have rent control laws like the one Oregon passed in 2019. Washington state law doesn’t limit rental deposits.
As of this writing, the Wenatchee real estate market doesn’t have laws limiting short term rentals, though they are considering it given how popular they are.
Consider looking for a Wenatchee real estate investment property that was already rented out on a short term basis, because it will be grandfathered in if new, tighter rules go into effect.
7. The Relatively Low Property Tax Rate
The effective property tax rate in Chelan County is 0.85 percent. That’s well below the 1.2 percent rate you’d pay in Spokane. A side benefit of the relatively cheap Wenatchee real estate market is that you’re paying a relatively low property tax rate on the lower property value, compounding the savings.
8. The Low Property Prices
If you just compared the Wenatchee housing market to surrounding rural area, the quarter million dollar price tag seems excessive.
However, this is skewed upward by the million dollar plus homes that sit in and along the state parks. Ironically, the Wenatchee real estate market remains a bargain compared to Snohomish County and King County. You could buy two or three Wenatchee real estate investment properties for the price of one Seattle mid-market home.
9. The Decent Rate of Appreciation
The Wenatchee real estate market is seeing slow, steady appreciation. This is partially due to demographic momentum; the average population is several years younger than the national average, and it is home to more families than the depopulation countryside.
Tourism has also increased local home values by one to two percent a year, though many other areas are in decline. This is roughly in line with the rate of population and job growth. It also means no one is going to build a ton of new homes, causing property values to decline.
10. The Lack of an Income Tax
Washington State is one of only seven states in the U.S. to not charge a state income tax. It gets most of its revenue from sales taxes instead. This has a dramatic impact on the ROI of a Wenatchee real estate investment property versus a similar one in California.
If you were an out of state property owner, you don’t have to deal with Washington State taxes beyond the property tax bill you’d owe almost anywhere else, too. There is a business and occupation tax applied on gross receipts for most businesses, but this does not apply to rentals.
Wenatchee Real Estate Investment
Maybe you have done a bit of real estate investing in Wenatchee, WA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Wenatchee real estate investment opportunity would be a key to your success. in If you invest wisely in Wenatchee real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Wenatchee investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Wenatchee, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Wenatchee, WA. The Wenatchee housing market doesn’t offer double digit appreciation or brand name recognition.
For example, you can’t say you’re investing in Silicon Valley real estate. However, the returns are no less than what you can expect is such competitive markets. Despite a nationwide downturn in the housing market, Wenatchee real estate has continued to appreciate year-over-year. Based on the last twelve months, short-term real estate investors have found good returns in Wenatchee. Wenatchee appreciation rates in the latest quarter were at 1.20%.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Wenatchee, WA is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Wenatchee real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
Another sizzling market to choose for investment is the Walla Walla real estate market. The Walla Walla housing market doesn’t get the same attention as the suburbs hosting hundreds of thousands of tech workers at firms like Microsoft. However, there are a number of factors that make it an excellent investment opportunity.
One factor driving up Walla Walla real estate prices is the number of retirees moving here. It offers affordable real estate, great weather and excellent amenities for a rural community. That led to it hitting the Forbes list of top 25 places to retire in 2016.
The other best place to invest in real estate is Fort Lauderdale, FL. The Fort Lauderdale housing market has a number of points in its favor. It is bolstered by its proximity to Miami, but it is more affordable, stable and reliable.
You can’t overlook the possibility of picking up a Fort Lauderdale investment property if you want to buy something in South Florida. Fort Lauderdale has many things going for it.
The beach front is one of them. That makes many areas incredibly valuable for either the views or the access to the water. It impacts the Fort Lauderdale real estate market in another way, because it limits expansion.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
About the city
Property tax rate
Affordable real estate
Lack of an income tax
Local economy impact on rentals
High tech sector
Housing Market Data, Trends & Statistics
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