First-time buyer affordability at lowest point in four years
JOEL MARTIN | Hagadone News Network | UPDATED 1 year, 12 months AGO
First-time home buyers face an uphill battle, but there are signs that the market may be easing up soon. Those who are considering buying their first home are encouraged to speak with a licensed real estate agent as they get ready to move forward.
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Joel Martin has been with the Columbia Basin Herald for more than 25 years in a variety of roles and is the most-tenured employee in the building. Martin is a married father of eight and enjoys spending time with his children and his wife, Christina. He is passionate about the paper’s mission of informing the people of the Columbia Basin because he knows it is important to record the history of the communities the publication serves. | September 6, 2024 2:55 AM
MOSES LAKE — That starter home may be out of reach a while longer, according to real estate market reports.
According to the University of Washington’s Washington Center for Real Estate Research, the Housing Affordability Index for First-Time Homebuyers statewide is at its lowest point since at least 2020. The index is calculated based on the average income and home price in a given area. The First Time Buyer HAI assesses the affordability of a house at 85% of the median price for a household with 70% of the median income and a reduced down payment. It’s predicated on the assumption that a household should spend 25% of its income for principal and interest on a mortgage. An index of 100 means that the average household has 100% of the necessary income; an index of 90 means that the household has only 90% of the necessary income.
Washington state has a First-Time Buyer HAI of 40 in the second quarter of 2024, the most recent date for which figures were available, according to the WCRER. That’s a decrease of 87.5% from the same time in 2020.
The Columbia Basin fared a little better in absolute terms, but the HAI for first-time buyers had dropped even more dramatically, according to the WCRER. Adams County’s first-time HAI was 59 in 2024 compared to 117 in 2020, a decrease of 98%. Grant County fared even worse over four years, going from 125 in 2020 to only 55 this year.
On a city-by-city basis, most of the communities in the Basin for which the WCRER had statistics followed the same pattern. Notable exceptions were Royal City and Mattawa, which both had significant drops but started out lower than the other communities.
Meanwhile, on the national stage, a study by the real estate analysis website Redfin showed that the average first-time homebuyer in the U.S. needed to earn $79,252 per year to afford a starter home. In the Seattle metropolitan market,the necessary income was $182,060, while the median household income for first-time home buyers was $126,310.
There is a bright spot, according to Redfin. Listings of starter homes nationwide were up nearly 20% from last year, compared to 4.1% for mid-range homes. Additionally, there is reason to believe that interest rates may soon drop, according to the WCRER, increasing home affordability.
“Although the Federal Open Market Committee of the Federal Reserve Bank did not lower rates at its July 31 meeting, it suggested that it might do so in mid-September,” WCRER Director Steven Bourassa wrote in a report for the Northwest Multiple Listing Service. ‘“A weak jobs report, largely reflecting a growing labor force, combined with low inflation suggests that the Fed will indeed lower rates next month with additional rate cuts expected at subsequent meetings.”
ARTICLES BY JOEL MARTIN
Quincy National Night Out scales down
QUINCY — Quincy’s National Night Out was more compact this year, which worked out well, said QPD Sgt. Joe Westby, who’s in charge of event planning for the Quincy Police Department. “National Night Out is a big event, and the fact that we’re able to shrink it up is like a breath of fresh air,” Westby said. “If you're always doing the same thing, it's kind of nice to switch things up and see how it works.” National Night Out took place Thursday on the block of C Street next to the police station, a shift from previous years when it was held at Lauzier Park. The smaller space meant fewer emergency vehicles for children to explore, but it also meant less walking for attendees. Grant County Fire District 5 brought a fire truck, and the Grant County Sheriff’s Office had a patrol boat. Renew, the Grant County behavioral health agency, had a booth and so did Quincy Partnership for Youth. Veterans Operation Creation sang the national anthem, and the Quincy Animal Shelter brought kittens that piled over each other making friends with passersby. As before, the QPD served grilled hot dogs.
Quincy Police retirements leave big shoes to fill
QUINCY — There are some big shoes to fill at the Quincy Police Department. “We’re losing 48 years of experience between them,” Quincy Police Chief Ryan Green said at the retirement party for Capt. Jorge Trujillo and Det. Damon Powell Thursday. Trujillo, who grew up in Sunnyside, has been with QPD for 19 years, he said, coming on as a patrol officer fresh out of the military. From there he served as a field training officer, a detective and finally captain. “I consider him my left-hand man,” Green said. “He runs the operations side of the house … He knows the agency very well, and he knows the community.” Trujillo has some projects around the house to tackle now that he’s retired, he said.
Big fun on a small scale
Wheat Land Communities’ Fair opens Thursday
RITZVILLE — The Wheat Land Communities’ Fair isn’t as big or as flashy as some of the county fairs around central Washington, but the folks who keep it going like it just the way it is. “It’s somewhere you can go and get an old-time traditional feeling, and you’re comfortable letting your kids roam the grounds and experience all that it has to offer,” said Board Member Lori Williams. “It’s more of a feeling than (one) specific thing,” The fair starts Thursday in Ritzville and runs through Sunday. Starting Friday, the 56th Ritzville Rodeo will take place alongside the fair at the rodeo grounds. This year the entertainment budget was expanded, Williams said, to be able to offer more fun that’s covered by the cost of admission. For the kids, there’s face painting, balloon art, Lego crafts, races, contests and games. Children can also ride on a little train towed around the fairgrounds behind a tractor.