This small metro area — population of about 250,000 — may share the same state with Seattle and Tacoma, but it’s an entirely different world on the eastern side of the Cascades.

Kennewick is in the rain shadow of the mountains and geographically has more in common with dry, southwestern Idaho than the rainy Washington coast. It lies very near the Hanford nuclear site, where plutonium was once produced for the Manhattan Project.

Employment has remained strong here with many high-paying jobs for scientists and support personnel being created at the Pacific Northwest National Laboratory in Richland. The unemployment rate in December was, at 8.1%, well below the national average.

The median income for the metro area is more than $61,000 while home prices, at a median of $172,000, and other expenses remain low. The cost of living is about 27% lower than Seattle. That should keep housing markets on their steady uphill climb.

Source: CNN Money

Uncertainty and restraint are the order of the day in this economy, and that sense of caution is reflected in home owners’ return on their investment in remodeling projects, according to REALTORS® in 80 metropolitan markets surveyed by Remodeling magazine for this year’s Cost vs. Value Report.

The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism. Six of the 10 projects—siding and window replacement using a variety of materials—involve home maintenance that costs less than $14,000.

Two more—adding an attic bedroom or a wood deck—reinforce the notion that boosting the amount of livable space in and around your home will attract buyers who are increasingly looking for more room for their buck. In past years, converting an attic into a bedroom was a project that landed squarely in the middle of the rankings, but this year it leapfrogged over other categories into third place. It’s an admittedly pricey project, with an average national cost of nearly $50,000, but it generates an average national return of 83.1 percent and a better-than-100 percent return on investment, according to REALTORS® in 14 of the 80 cities surveyed. Adding a wood deck is much more economical, with an average national cost of slightly more than $10,000. Its average national return is 80.6 percent, but in six cities, its return is estimated at 100 percent or greater.

The six siding and window home maintenance projects in the top 10, combined with the project with the biggest return on investment—a mid-range entry door replacement—prove something that every sales associate tells sellers throughout the country: First impressions count. A mid-range entry door replacement, a project new to the survey this year, is the only home remodeling project that REALTORS® expect to generate a full return for the money nationally. It’s the least expensive of the 33 projects included in the analysis, yet it brings a whopping average national return on investment of 128.9 percent. It generates a better-than-100 percent return in 48 of the 80 cities, according to REALTORS® surveyed, and in several cities, its return is estimated at more than double its cost.

Additional data prove the value of restraint. Upgrading kitchens and baths is still a smart bet. However, home owners will recoup the greatest share of their costs by foregoing super-deluxe projects in favor of mid-range kitchen and bath remodels. A mid-range kitchen remodel brings an average 72.1 percent return on investment, while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested. A mid-range bathroom project has an average 71 percent cost recovery, but the average recovery on an upscale bathroom project is nearly 10 points lower, at 61.6 percent.

The only upscale projects that cracked the top 10 were the home maintenance projects of fiber-cement siding replacement and vinyl window replacement. The average cost of fiber-cement siding is more than $13,000, but its return on investment reached 83.6 percent, placing it squarely in second place in the survey. The average cost of vinyl window replacement is nearly $14,000, and it generates an average return of 76.5 percent, or tenth place in the survey. Of the 12 upscale projects, nine landed in the bottom half.

Overall, home owners recouped an average of 63.8 percent of their investment in 33 different home improvement projects, according to REALTORS® who responded to the survey. The expected cost recoup was generally down from previous years in line with the drop in home prices nationally (see page 23). The return on home owners’ investment in remodeling projects has declined an average of 3.5 percentage points between 2008 and 2009. That’s down from the 2.7 point drop between 2007 and 2008 and much less than the 5.5 point drop between 2006 and 2007 and the 10.5 point drop from 2005 to 2006.

Zooming in from the national to the city level, Honolulu sits atop the rankings for having the most projects—18—that generate at least a full return on investment. In Honolulu, adding a wood deck, completing a minor kitchen remodel, adding fiber-cement siding, and replacing an entry door bring the highest returns, ranging from 121.1 to 195.3 percent return on investment. San Francisco is closest behind with 10 projects generating at least a full return on investment. Adding a master suite, doing a minor kitchen remodel, and replacing an entry door have the biggest returns, producing between 112.2 and 119.1 percent return on investment.

One surprise: Despite the common perception that contractors are hungry for work and therefore willing to wheel and deal, the average national cost of every project surveyed has gone up, though at a slower rate than in the previous year.

View 2009-10 Cost Vs. Value Report.  Data courtesy of Remodeling Magazine

10 Big-Impact, Low-Cost Remodeling Projects

Working with sellers who have some—but not unlimited—cash for upgrades? Here are budget-minded enhancements you can suggest to make their home stand out.

1. Tidy up kitchen cabinets.

“Potential buyers do open kitchen cabinets and look inside,” says Morrissey. “Home owners can add rollout organizing trays so when buyers peek in, they feel like there’s lots of room for their stuff.”

2. Add or replace tile.

“By retiling very inexpensively, you make a room look way cleaner that it was,” says Javier Zuluaga, owner of Home Repairs and Remodeling LLC in Tempe, Ariz. “Every city has stores that offer $1 to $2 tile, so home owners have to pay only for the low-cost tile and labor to replace a dated backsplash or add a new one. We also use inexpensive tile to upgrade bathrooms.”

3. Add a breakfast bar.

When a wall separates a kitchen from a family room, suggest cutting out an opening to create a breakfast bar. “In one home, there was a cutout in the wall between the kitchen and living room,” explains Matthew Quinn, a sales associate at Quinn’s Realty & Estate Services in Falls Church, Va., who handles estate and real estate sales for family members whose loved ones have passed away. “We left the structure of the cutout, added an oversized granite breakfast bar, and put chairs in front of it. That cost about $600.”

4. Install granite tile instead of a slab.

“Everybody is hot for granite kitchen countertops, but that can be a $5,000 upgrade,” says John Wilder, a general contractor and owner of Fence and Deck Doctor in New Castle, Ind. “Instead, home owners can put in 12-inch granite tiles for about $300 in materials and get very high impact for little money.”

5. Freshen up a bathroom without retiling.

“With a dated bathroom, I recommend putting in a new medicine cabinet for $100 to $150, light fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300,” says Wilder. “And instead of replacing the tile, the existing grout can be lightly scraped and regrouted, which leaves a haze that can be buffed out and will make the tile look brand new. Also install glass shower doors. A French door adds a lot of panache and elegance for $250, and people will notice the door, not the tile. With all that, you’ve done a bathroom remodel for $1,000 to $2,000.”

6. Freshen up the basement.

“If home owners have cement block or poured concrete walls in the basement, suggest they have a contractor fill in cracks with hydraulic cement and then paint with waterproofing paint,” recommends Wilder. “They can then add a top coat to add color. They can also paint the basement floor with a good floor paint, which spiffs it up. The basement may not be finished, but it’s no longer a damp dungeon.”

7. Add a room.

Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall. “One time, we closed off a half-wall to an office and added a door to the other side of the room, thus creating another bedroom,” says Quinn. “That $400 procedure, which took a contractor one day, netted about $40,000 in the sales price.” Zuluaga has also added bedrooms inexpensively. “In a two-bedroom house, there was an archway that led to a third room that was used as a den,” he explains. “It had a dry bar where there would have been a closet, so we took out the dry bar and created a closet so the owners had a third bedroom.”

8. Spruce up cabinet fronts.

Suggest home owners update tired-looking kitchen cabinets. Reconditioning is the least expensive move for under $1,000. “If the wood is starting to look shabby from use or contaminants in the air, we take out the nicks and scratches, recondition it with oil, and put new hardware on,” explains Heidi Morrissey, vice president of marketing and sales at Kitchen Tune-Up in Aberdeen, S.D. For $1,500 to $4,000, owners can replace the cabinet doors and drawer fronts, and for $4,000 to $12,000, they can have all the cabinets refaced. “With refacing, owners can change the color of the cabinets by replacing the door and having a new skin put on the boxes,” says Morrissey. “If they have oak cabinets today, they can have cherry the next day.”

9. Replace light fixtures.

“In a foyer and in bathrooms and kitchens,” says Wilder, “replacing overhead light fixtures provides a lot of pop for a little money.” If the kitchen has track lighting, Zuluaga suggests the home owner spend $450 to $600 to have an electrician replace it with recessed canned lights on a dimmer switch to add ambience. For about $700, Zuluaga also suggests installing pendant lights over a kitchen island or peninsula.

10. Tech-up the garage.

“Sometimes we replace the garage door opener with a remote touchpad entry system,” says Zuluaga. “That costs about $425 and makes it look like a high-end system.”

Download a PDF version of these 10 big-impact, low-cost ideas.

Tri-Cities consistently ranked among the Best

In the past couple of years, the Tri-Cities has made several magazines’ “top list” Top 100 Best Places to Live. Top 10 Affordable Places to Retire on the Water and Best Cities for New Jobs. There are two common themes among the lists we made job growth opportunities and low cost of living. These themes seem ironic given the economic downturn the country is experiencing this year but they’re also an indicator that the Tri-Cities’ economy has weathered the storm better than most.

For example, our job market continues to grow. Just two months ago, the Tri-Cities ranked second on Forbes’ “Best Cities for New Jobs.” Our net employment outlook, which is calculated by subtracting anticipated job losses from job openings, is 11%. The No. 1 ranked City was Lincoln, Neb., with a 17 percent net employment out look.

The Tri-Cities also jumped to sixth place, from 29th, in the 2009 Milken Institute index for Best Performing Small Cities. The index ranks U.S. metropolitan areas by how well they are creating and sustaining jobs and economic growth. Components include job, wage and salary and technology growth. This year the Tri-Cities also made a list for Rising Residential markets in the nation — we were ranked number one in a list of the top Five. The ranking came at the same time that our real estate market was starting to make a comeback. In March we experienced a surge in homebuyers,” said Chris Wilson a local Windermere Real Estate agent. It was a welcome change from the all that we saw in the market from October 2008 until the end of February 2009.

The saying ‘what you focus on expands’ is exactly what happened in the Tri-Cities. All of the reporting about the economy was gloom and doom. And even though this area was not experiencing what the rest of the country was going through, we bought into it, so Our market was negatively impacted,” continued Wilson. Wilson says families are relocating here due to the strong job market and quality of life, which includes affordable housing.

CNNmoney.com ranks Richland No. 51 on its Top 100 Best Places to Live. According to the stat, the cities job growth among the best between 2000 and 2008 was 18.59 percent, just a 1 percent below average growth data for all cities in the top 100. In addition, the median home priced is listed as $182,000, which is $80000 below the average of the other cities. Compared to the averages of other cities on the list this area also has a better air quality index, shorter commute time, and warmer weather.

Kris Watkins President and CEO of the Tri-Cities Visitor & Convention Bureau agree that this area is a great place to live. We are delighted that the Tri-Cities continues to be recognized as a ‘best place’ in the U.S. time and time again.

We have beautiful waterfronts, award-winning wines, premier golfing and low-cost of living; all of these attributes make the Tri-Cities an attractive destination to live work, and play. More good news for those living or moving here – its a great place to retire — according to a list by USNEWS.com. I’m not surprised by the positive recognition. I for one, already plan to hang my dentures here.

Andrea Turner works with Pacific Northwest National Laboratory’s Economic Development Office

She can be reached at 375-3893

Sold/closed Information
Number of Residential Sales YTD . . . . ……. . 2861
Compared to I Last Year YTD . . …………….. 2725
Average Sold Salesprice . . . . . . . . . . ….. … . $188,872
Compared to Last Year YTD . ……………….. $ 190,669

Avg. SOLD DOM . . . . . . . . . . . . . . . . . . . 110
Compared to Last Year YTD .  . . . . . . . . . .110

New Construction Information from HBA
Year to Date-same time in:
——————————————2009  2008  2007
Total Building Permits              899   910  1128
Kennewick                                      213  201  277
Richland                                        63  203  251
Pasco                                              399  367  470
W Richland                                    124 139 130
Active New Construction . . . . . . . . . . 208
Last Year This Time . . . . . .     370
AVG. Active List Price for New Const. . . $290,624
Total New Construction Sales YTD . . . . . . . . 655
Last Year This Time    . . . . . . . . . . . . . . . . 701
Average Sold Price for New Const. . . . . . $239,758
Last Year This Time .          . …………………$244,717

Stats were Created by Windemere based on information
from the Tri Cities Association of Realtor s
multiple listing service  11/18/09

you may qualify for the $6,500 if…

1.0
You have owned a home for five consecutive years out of the past eight years.  This home must have been your primary residence.

2.0
You purchase a different home as your primary residence.  This home’s purchase price cannot exceed $800,000.  If it does , you are not eligible for any portion of the credit.

3.0
You do not need to sell your former primary residence.  You may lease it, sell it or give it away.

4.0
Your income does not exceed $125,000 filing individually or $225,000 if married filing jointly.  Even if you do make more you may be eligible for a smaller credit.

5.0
You must purchase the home sometime from November 7, 2009 to April 30, 2010.  You must have signed purchase/sales agreement during that time.  And have proof of purchase for your tax return.

6.0
You get an additional 60 days to close financing or on sale July 1, 2010

7.0
You must be 18 years of age or older.

First-time Home-buyer’s tax credit limit equals $8,000

Who qualifies:

You have not owned a home for the past three years.

Your income does not exceed $125,000 filing individually or $225,000 married filing jointly.
(If your income is more, you may still qualify , but a sliding scale.)

You get an additional 60 day grace period to close financing

The home you by must be your primary residence.

What you get:
A tax credit that equals 10% of the value of the home up to $8,000.
If you do not owe $8,000 in taxes you receive the balance in a stimulus check to you.
If you sell your house within three years  there are penalties.

Resources:

www.wahomeowners.com
A great site for homeowners.

www.homeloans.va.gov
VA home loans.

Washington State housing finance commission: www.wshfc..org
Low-interest loans, down payment assistance, and first-time home buyer classes.

Homeownership in Washington: www.homeownership-wa.org
Another great nonprofit resource web site.

Homesite Washington:  www.homesightwa.org
Help for low to moderate income families looking to buy a home.

Fannie Mae:www.fanniemae.com
Competitive loans and a great buyers resource.

HUD Help for homeowners:www.hud.gov
Free foreclosure avoidance counseling.

Making homes affordable: www.makinghomesaffordable.gov
government-sponsored programs to refinance your home or loan modification.

Washington Association of mortgage professionals: www.wamb.org
trade association for mortgage professionals as well is excellent information for consumers

Realtor.com:www.realtor.com
The world’s largest database of homes for sale.

Susan

www.susanknowshomes.com

A conforming loan is one that meets the standards of loan guidelines as established by government-sponsored enterprises (GSE’s) Freddie Mac and Fannie Mae, meaning Freddie and Fannie can buy loans up to predetermined amount, with that amount adjusted annually. Presently, the conforming loan limit for a single-family home is $417,000, although as part of the Economic Stimulus Act of 2008, the loan limit in certain high-cost areas of the U.S. have a new cap of up to $729,750, depending on location. These loans are referred to as “conforming jumbo” loans. The cap for these loans is calculated to be 125 percent of the area median home price and is not to exceed $729,750, except in Alaska, Hawaii, Guam and the U.S. Virgin Islands, where the cap is 50 percent higher than the limits for the rest of the country.

Confused yet?

Boiled down to real language, prior to the Stimulus Act, conforming loan limits were $417,000 and rates were attainable. However, if you needed a loan over $417,000 – called “non-conforming jumbo loans” – you probably paid a percentage point or two above what a conforming loan cost. For loans that big, it was difficult for borrowers to qualify. For example, suppose “John” needed a mortgage loan for $350,000 – he could get a rate around 6.5%. But if John wanted to buy a bigger house and needed a mortgage loan of $600,000, his rate could be as much as 7.5-8.0%, only because the loan amount exceeds $417,000. See the difference?

With inequity in rates, the mortgage crisis and a stalled real estate market, the government has stepped in to try to kick-start the high-end market by lifting the lid on the conforming cap. The hope is that for borrowers who live in these areas, the rates and availability on higher-end loans that were once hard to get are now more accessible. For example, borrowers who are in high-cost Jumbo ARMs can refinance into a lower-rate 30-year fixed with more affordable payments. Also, sellers who live in higher-priced areas will have a better chance of selling their home with more loan options available for potential buyers.

Where is the Money?

Freddie Mac and Fannie Mae have agreed to buy jumbo mortgages in 224 high-cost markets where median home prices exceed the original conforming loan limit of $417,000. The loans will be purchased from Wells Fargo Home Mortgage, Chase and from all lenders that sell to GSEs and the Federal Housing Administration (FHA). Freddie and Fannie will then bundle thousands of these loans together and resell the debt to investors. Investors are comfortable buying the debt packaged and sold by Fannie and Freddie because these two GSEs only buy loans that will meet their standards for creditworthiness.

Susan

In what has been urged as a must-have by real estate professionals and builders, the $8000 tax credit for first-time home buyers (previously due to expire Nov. 30), has been extended through April 30, 2010, according to the Associated Press. Not only has it been extended, but it has also been expanded to include more buyers.

Details on Tax Credit Extension:

* $8000 tax credit for first-time homebuyers extended for buyers who sign a contract by April 30, 2010 (and who close by the end of June).
* $6500 tax credit offered to homebuyers who have lived in their current residence at least five years and who want to “trade up” (buy a new primary residence).
* Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify (up from $75,000 for individuals and $150,000 for couples).
* Tax credit not applicable for those buying homes worth more than $800,000.
* Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.

Will the Tax Credit Extension Help?

According to a recent survey  conducted , nearly one in five (18%) prospective first-time home buyers said extending the $8,000 tax credit would be the primary influence on their decision to buy a home before the end of 2010, potentially stimulating an additional 334,000 home sales. The caveat here is the survey asked first-time home buyers if they would purchase a home prior to the end of 2010; this bill will only go through April 2010, not the end of 2010 and it involves a different type of buyer, as well.

The cost for the tax credit extension is estimated to be $10 billion and opinions vary on whether it will actually help the economy or not. One writer provides 5 reasons the U.S. should stop home buyer perks.

Susan

www.susanknowshomes.com

you can go to my web site at www.susanknowshomes.com

ThankYou

SUSAN