2019 Market Conditions in Walla Walla, WA?

Question

Hello everyone!

Does anyone have a pulse on current Walla Walla, WA market conditions? Specifically:

• Are property prices beginning to realign with rents?
• Do you find the job market continuing to grow and diversify?
• Where do you find the greatest need for rentals (2/1, 3/1, 3/2, etc.)?

Thank you for your input and insight!

Tony Wooldridge · Answer

@Matt J., thanks for inquiring about Walla Walla, Washington.  It is a GR8 town that has seen tremendous growth due to the Wine industry.  Which in turn has brought a GR8 deal of $ to the area in the way of visitors and quite often visitors after visiting fall in love with the quaint town and move here.

With that said, the Real Estate market much like others around the country is still a seller's market.  Inventory is still low, however, we had a very late winter and I imagine that we should start to see as usual Spring bring more houses to the market.  Days on market is about 60 on average.

Depending on what you are looking for turnkey, value add, will determine if the cost of property vs rent works for your goals.  The MLS properties typically are going to be difficult to make work at these prices unless you are buying everything for cash and don't mind not being liquid. I find the rental market is still very strong.  Much like every other place we have what everyone calls a shortage of housing.  So rentals are still very much in demand here.

The job market is stable and with all of the wine tourism and influx of people we are seeing an up trend in our job numbers not huge (as our town's population isn't big) but good for a small town.  As most places the health care, colleges, public schools K-12, city jobs, retail, hotels are stable.  We also have a strong agricultural job market.

Because we have several colleges in WW and a fairly stable employment market most rentals regardless of bed/bath do well.  It is a good rental market and like most places if you buy right and you aren't a slum lord and you screen well you typically are going to do well.  I certainly hope this helps and if there is anything else I can do to provide you assistance please feel free to let me know.  Thanks for allowing me to share.  Here is to wishing you nothing but GR8 success in what you are searching for.

Tony Wooldridge · Answer

@Matt J., my pleasure.  Crime is one of the unfortunate realities of EVERY town, city, neighborhood, state.  No matter where you go you have it.  With that said, I personally have not seen dramatic or drastic effects of it impacting our RE market.  I have seen the same statics that you are referencing as it relates to WW.  By no means am I saying we don't have things happen here and that it is all Rainbows and Butterflies.  However, IMO the reason I believe that it appears that the crime rate is so much higher here than that of the national average is the lack of population density that they are bouncing the numbers off of in other places.  Anytime you have a few crimes in a smaller community it is a big deal and because statistically per # of people within a smaller community the #'s look high! So is there crime yes, is it bad and happening every where no.

Just like every where else there are parts of some neighborhoods within town that I would never invest in for this very reason.  But these crime rates within these communities typically if never have any impact on my investing in WW, I just stay out of these areas.  Hope this helps.  If you ever make it down and over this way please feel free to reach out, I also just started a WW REI meetup, you would be more than welcome to attend if ever in town.   Here is to wishing you GR8 success in REI ventures!

Mike S. · Answer

@Matt J. Thanks for asking this question. I, too, have been especially curious about the Walla Walla market. It's such a great town and seems to be on a strong trajectory on many levels.

@Tony Wooldridge Congrats--between your flips, rental, and the meetups, it sounds like you're cooking up some great things. I've enjoyed your blogs and you did a beautiful job with that flip you posted about. Thanks for sharing your insights and your enthusiasm for Walla Walla. It sounds like you self-manage your rental, but do you have any recommendations for property managers in the area? And, for that matter, an investor-friendly realtor? Thanks in advance, Tony!

Mike S. · Answer

@Tony Wooldridge Thanks so much! Indeed, please keep me posted if you feel you've found parties especially worth recommending. I've only spoken with one realtor in the area, thus far, and it was more in the context of a specific property than establishing an ongoing relationship.

I appreciate your commitment to self-managing your properties and expanding your management knowledge in advance of handing things off to a PM. Through your comments and blogs, it sounds like you're a true scholar of your craft and creating systems--and a perspective--that will readily scale in accordance with your desires.

To answer your question, I'm currently based in western Wyoming. We have family in Washington. This has, in part, made Walla Walla even more appealing.

I'll be sure to reach out to you the next time I'm in the area--I appreciate the offer. And as time permits, I hope you post some more photos and updates on your BRRRR property. Thanks again, Tony, for sharing your knowledge and insights so generously.

Tony Wooldridge · Answer

@Mike S., Thanks!  Oh, you are the ONE that read my BLOG, thanks! LOL.  Yeah, we are having a good time over here in the town they loved so much they named it twice.  WW is a GR8 place that continually starts to make bigger waves in what it has to provide.  Yes, I am just getting started in the B/H world and thought it important to figure out how to self-manage so that I would have a better understanding when I am ready to pass off to a PM.  With that said, I personally have not found a PM that I am willing to recommend.  I am not saying they don't exist here as I am confident they do, but I just have not put in the time yet to find THAT ONE!  However, I am extremely glad that you have asked the question because I owe it to my Walla Walla Meetup group to bring several of them in for my group to decide who they see fit to turn their properties over too.  So I promise to keep you posted if you hit me up again or I discover THAT ONE!

On the investor-friendly realtor, I pretty much feel the same way about them as I do the PM's I think we have good realtor's here but I am still yet to discover THE ONE that I truly can get behind and say with complete confidence that they are truly an INVESTOR FRIENDLY realtor.  If and when I find them I definitely will be sharing with the community as to whom to reach out to.   It is also funny you mention this.  I was actually approached today at my BRRRR property while working by a RE brokerage owner inquiring as to why I haven't got my license yet! LOL, very flattering I might add but I like the investing side to much thus far to invest what very little time I have to anything else but my REI career.  Maybe someday but not yet.  I am pretty sure after rereading this I haven't provided you with much help, for that I am sorry, however, please hit me up again soon as I intend to find what you are looking for.

If you don't mind me asking whereabouts are you from?  If you are ever over here in the WW area please reach out as I love to share in my love of REI with others that share in the same.  Hope this finds you well and here is to wishing you nothing but GR8 success in what you seek!

Matt J. · Answer

Thank you for the current market picture, @Tony Wooldridge! While the unemployment rate is a bit above the national average right now, job growth was over 2% last year, which is great. It's nice to hear your assessment supports what appears to be a trend.

Have you noticed a change in crime? Some estimates indicate property crime was nearly double the national average last year. Often, this has a direct correlation to rent prices. Granted, it can be a neighborhood by neighborhood consideration, but how do you see it affecting the overall rental market?

Matt J. · Answer

Thank you for the follow-up, @Tony Wooldridge. You do make a good point about relative size skewing certain ratios. Regardless of statistics, I still see WW as a very interesting market with lots of potential.

We do need to get over there soon - likely within the next couple of months. If possible, I will try to make it to one of your meetups (bravo for getting that rolling, too!).

Cheers!

John Clark · Answer

"Does anyone have a pulse on current Walla Walla, WA market conditions?"

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No doubt they are the same as in Kalamazoo.

Sorry, couldn't resist.

2019 Market Conditions in Walla Walla, WA?

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