How is the Vancouver Washington market

[Alex Jaime]

Hi guys I am an out of state investor who is going to visit the Vancouver Washington and was wondering if anyone could give me an insight on how the market is over there. I am actually originally from Washington state I grow up in the Bremerton area and am excited to visit the state I call home. I was looking into Camas or Ridgefield area but am open to look in other areas any insight will help thanks guys and GO HAWKS!!

[Steve Milford]

Hey Alex,

It depends on what your strategy is for Vancouver. Lots of people will tell you on the surface that it is hot, hot, hot. And yes it is except for nuances of the area. i.e. People here HATE traffic and base their housing choices off of it - that is why south of the Columbia River, Portland and burbs, is hotter than north of it in Vancouver, Camas, etc. i.e. If you live in Camas and work in Portland, although it is only 20-30 miles it can still take you 60+ minutes to get home EVERY night. The infrastructure AND wages (little manufacturing, mostly service related jobs here) is not here for the amount of people that live here and will never be because of the populations massive resistance to any new taxes. And the payroll taxes sting lots that do that - you pay income taxes where you work, not where you live (in WA no income tax).

If your strategy is buy and hold - yes it is great for the simple reasons that there is little to no inventory and rents have always been higher than most mortgages in the Portland Metro area. I don't even care what the inventory number is - low inventory has been a fact of life for years.

If your strategy is to flip - be more wary. Unless you get something that is a true fixer or you buy something before it hits the market, etc, after taxes (excise tax averaging 1.78%) and Realtor fees, then buying a good deal is a bit tough. You're going to look at a lot of properties that just don't pencil out.

Key is that you get as raw as data as possible (send me an email and let me know what you want) and you be willing to make a competitive offer sight unseen on a property, and that you already have the cash or financing put together. Pre-rehab properties that are still move-in able are selling for full retail or more in the Less than $250,000 range. i.e. I am wrapping up a purchase for my buyer's in Vancouver that is 105% of purchase price that hasn't been upgraded in 20+ years. By the time you get to $325,000 buyers become scarce. $400,000 almost non-existent. If a home is a good price less than $250,000, usually after a day or 2 max, it will have 5-7 offers on it and go pending no matter what day it goes on the market. 

The paper or purchasing power of buyers just isn't there right now, and has gotten worse in the last few months. People just don't have the available cash. Flip back to the first-time home buyers (and the SFR less than $250K range - non-existent south of Columbia River) - there are lots of down payment assistance programs. i.e. I have a lender that I refer a lot that offers a conventional 1% down payment. I had a listing in the upper $400's this summer and it was priced a little under market. In 4 months we received maybe 5 total showings.

Ultimately, here is what you need to know. I run into lots of people that want to be or are investors in this market that want a "good deal". I laugh every single time. Here is the simple truth. Sellers that come to me asking about the market usually find out quick if they haven't already, that although they are upside down or what not, most of the time, unless it was a recent transaction in last few years, they can still sell a little below market and get retail for their home. Banks want as full value as well. The deals are primarily found in short sales and still go fast depending on price.

If you need any help or raw data send me a message or contact me directly. I am busy, so I only get on here about once a week.

Steve