Jacob Davis

00:00

Jacob T Davis here, Woodbridge real estate with

 

Jarod Evenson

00:04

Jared Evanson with cross country mortgage and Jacob, you know what date is,

 

Jacob Davis

00:08

August. 1 .Nice touch Jared Evanson Love me some Bone Thugs and harmony. That takes me back to, I think, eighth grade, maybe, maybe freshman year in high school.

 

Jarod Evenson

00:27

Yeah, yeah. It goes back a long time. Um, funny story is, I get one of my old co workers sends me that music video every month on the first of the month, without fail, he sends it to me and another co worker, andrena, shout out. Marcus Anderson, you’re the man. Thanks for the reminder. Every month,

 

Jacob Davis

00:47

I don’t, I don’t know if there’s a better way to start your month than with a little Bone Thugs, you know, I’m saying,

 

Jarod Evenson

00:54

Yeah, that’s true. Yeah, it’s, it’s a it’s also the like this month, it’s a good reminder that it’s already August. The summer is most of the way over. That’s weird. Yeah, football starts this month. That’s cool, too.

 

Jacob Davis

01:10

That’s great. Summer flew by, looking forward to kind of getting focused back into some some real estate. So I pulled some stats. I was just curious. I was looking at it on where we’re at in the market, in Pullman, specifically. And for August 1, we have 91 homes on the market, compared to 41 back in December of last year. So thought that was interesting. We’re basically double the listings. There’s 23 pendings, though, compared to 13 in December. So that’s kind of interesting. 148 properties have sold, compared to 109 so even though we have a lot more listings on the market, we have more home selling. That’s like, really healthy.

 

Jarod Evenson

02:06

I feel like it’s a healthy market.

 

Jacob Davis

02:09

I think so considering, like Pullman, you know, we’ve kind of had a lot of bad news, I would say, in Pullman with the university, the pack two, pack 12. I mean, I don’t, I mean, it’s, it feels like it’s been a challenging market, but stuff is still selling, average days on markets, 45 compared to 41 in December, average list price has actually gone up, 430, compared to 425, average sold price 421, compared to 417, most expensive home that has sold is 1.2 million. Most expensive property that has sold, which was an apartment complex, was 2.2 million compared to 870,000 in December. So thought that was interesting.

 

Jarod Evenson

03:08

Yeah, I like those numbers. I think it’s good for buyers and it’s good for sellers. Like, if you’re a buyer, there’s stuff to look at.

 

Jacob Davis

03:17

How’s that so what’s going on in your world with interest rates?

 

Jarod Evenson

03:21

Interest rates, they’re great, like compared to where we were sitting a month ago. So a couple things that are real big indicators for interest rates. Is recently the big talk has been inflation, and the reports on inflation earlier in the year weren’t coming in where we wanted them to, so rates weren’t coming down for the last couple months. We’re starting to see what we want with a little we’ll call it flattened inflation or or the inflation isn’t going up as high as it was. And so we’re getting better news, which is, in turn, pushing interest rates back down. Um, we’re really, really, really close to seeing interest rates start in the fives for, like, your government loan. In fact, you probably get rates in the fives right now on VA and FHA loans and your conventional stuff starting to get into the mid sixes. So, like, which is a great trend. It wasn’t too long ago we were in the sevens and seven and a halfs, and I’m talking very short term ago. So we watched the the 10 year US Treasury yield to really kind of is one of our biggest indicators. And that fell down below for this morning, it fell down below four. We weren’t really expecting that. The further down it goes, the better it typically is for interest rates. So we are headed in the right direction. I think lower interest rates are finally ahead, and for once, the data is supporting that, versus just the hopes and wishes.

 

Jacob Davis

04:59

Yeah. Nice to get some more buyers into the market so we can sell some of these properties in in the market right now. I mean, July is always kind of slow in Pullman, slower. A lot of people go on vacation. I am feeling people coming back to the market right now. Kind of, you know, kind of, when schools start back up, people start looking again interest rates. People are, I think, optimistic about interest rates drop in so I think we’re seeing more buyers in the market. It was feeling like the only people that were buying had to buy, like move into the area. Had to buy, not as much people moving up kind of buyer. But if we could get some help with some interest rates reductions, it gets more buyers interested.

 

Jarod Evenson

05:56

You know, you know what gets unlocked as rates go down is because you’re completely right. It’s the the buyers that have to buy are buying right now, but the buyers who are locked are those people who are in those three and 4% interest rates, right? And the closer that the rates today get to those numbers. So once we get into the fives, the people who are in the fours are less hesitant to sell and buy something else, because that difference isn’t as bad, right, right? When, when rates are at seven, someone with a four doesn’t want to go buy something else because the payment shoots up so much. But if we can get those rates down to the fives, it’s not as big of a punch in a gut form, to sell their house and buy something new. And that’s going to unlock a whole new set of buyers. It’ll unlock a lot of move up buyers who can now stomach the higher interest rate sell their house. That might be an entry level home, which is going to get more first time home buyers in the houses and that move up buyers. So as we see this, I think we’re going to unlock a lot more buyers too, which is what we need and what we want, and then it’s going to open up inventory for our lower price range, first time buyers. So it’d be great.

 

Jacob Davis

07:12

Yes, that sounds amazing. We so, you know, I sell in both Washington and Idaho. Pullman, Pullman and Moscow are, you know, my two main markets. And so, Pullman, Whitman County. So I sell Pullman Colfax, you know, blues Garfield year old stomping grounds, and so and so. Pullman has felt a little bit slower almost than Colfax Whitman County. I think it’s price point. You know, in Colfax Whitman County, you can still buy homes under 400,000 whereas Pullman, you buy, barely buy trailer, you know, under 400k in Pullman, but Moscow still seems like kind of a hot market. It’s not as hot as it was, but I get a lot of buyers who just won’t buy in Washington State. They’ll just won’t do it so and it’s also cheaper to build in Moscow. Well, I mean, for the construction costs, because they don’t have the ridiculous energy code, yes, I said it ridiculous energy code in Washington State. I mean, to be honest, Washington State has way too much regulation. I’m sorry, way too much regulation, and it’s too expensive, and it’s killing us over on the east side of the state. So I should run for governor.

 

Jarod Evenson

08:54

I got my I got my house plans in for the house I’m having built right now, literally, the day that was the deadline to get in on the previous code, so I am able to have natural gas and whatnot, whereas one day later, I would have had to go all electric for everything.

 

Jacob Davis

09:13

Yeah, there, there was that, yeah, they, because they just changed the energy code again. And I hear it from my builders that I work with, they’re just losing their minds over it. Because, you know, buyers are wondering, why, why is it so expensive? It’s like, well, you could thank your state government, because they keep making it harder for builders to build.

 

Jarod Evenson

09:33

Tell me I really feel, and there’s, there’s a big difference on construction with, like, the taxes and sales tax and whatnot in Idaho than there is in Washington as well, which saves a lot of money. So it’s like, two fold,

 

Jacob Davis

09:48

yeah, and then permits, like, I mean, to get a permit. So there was only one permit pulled in June, is what I was told for Pullman, which is crazy. That’s like. Not very many. And because everyone, I think, pulled permits before the New Energy Code went into effect. And because after, it’s like, well, you know, builders are just trying to save money. But, I mean, it’s crazy. One permit pulled, and permits are like, 10k you know it’s like, Why does a permit have to cost $10,000 I mean, I know they have to do like, several inspections, but are they charging $1,000 does it cost $1,000 per I should break this down. How many inspections it takes by the city. How many hours are do they? Are they really spending to justify that $10,000 that we should have someone with the city on? That’d be that’d be interesting.

 

Jarod Evenson

10:55

Oh, we’d have to play nice, though.

 

Jacob Davis

10:59

I don’t play nice man. Just joking. Well, cool. So the other thing we were talking about, what was that the inspections, we went on a tangent there.

 

Jarod Evenson

11:11

Yeah, that’s great cost between Moscow and Pullman, though, and the different real estate markets you’re seeing some people who only buy in Idaho,

 

Jacob Davis

11:24

yes, won’t buy in Washington State.

 

Jarod Evenson

11:27

You know the inventory over there, you probably don’t do you or up top your head.

 

Jacob Davis

11:31

I think it’s under 80 so it’s like 91 in Pullman and I they’re in the 70s over there, but they have a lot of new construction that’s not even priced, that is showing is active listings, whereas in Pullman you gotta everything’s priced. So So, yeah, less inventory. Feel like more deals are happening in Moscow,

 

Jarod Evenson

11:58

makes sense.

 

Jacob Davis

12:01

Yeah. So, one other thing going on in the market is deals falling apart, right?

 

Jarod Evenson

12:10

Oh my gosh. I I don’t I wish. I wish I kept stats on this, but when I get a contract from realtor like you guys, I’m seeing more fallout than I ever seen deals falling apart. And I don’t know if I should, if we should blame what? What would we attest to expectations being too high? Or is there still, is there? Is there still a gap where now buyers feel like the ball is in their court and sellers still feel like they hold all the cards, and that, you know, we haven’t bridged that together yet. Or what would you think is going on there? If there was a period where, you know, as a buyer, you didn’t hold any cards, it was Take it or leave it. We don’t care what shows up in the inspection, and that period’s gone. I mean, it’s more of a level market now, so

 

Jacob Davis

13:01

Well, I think in my experience, I’ve had two deals fall apart recently. One was basically the buyer felt like they kind of overpaid, I think because it was a competitive situation, and then when we need so buyer didn’t even ask for anything. They just pulled the plug on it. Because I think after looking at all the work that needed to go into the house, plus them having to overpay, they said, No, not interested, and backed out. And I think a lot of that has to do with interest rates, like, I mean, when you’re you know, at 4000 a month for house payment, and then you gotta put another 20 to 50,000 into the house buyers just lose their motivation. It’s just everything’s so expensive. I mean, this was a $700,000 house buyer pulled the plug because, I think for one, they felt like they were overpaying already. And two, they just didn’t want to spend the extra money to then fix it up. The second deal that fell apart, I think same. They just don’t There was too much work for what they felt like they were paying. And unfortunately, like, you know, pricing, in my mind, really hasn’t gone down much, and I don’t think it is going to go down much, so I think buyers are sort of like frustrated, and taking it out on sellers is what I think like, you know, I’m pissed. I’m going to back out.

 

Jarod Evenson

14:55

There’s, there’s a big disconnect in what people. Expect out of the market is, you’ve, we’ve all had those buyers. I’m going to wait for the market to crash before I buy. It’s like, Yeah, okay. Like, what they don’t realize is, like, home prices aren’t the market’s not going to crash. It’s just not going to be appreciating as fast. Yeah? Because, yeah, of course, there can be some sort of economic event that could cause a market to crash. I guess we thought that that’s what COVID would have done, and it did the exact opposite. Like, what do you do?

 

Jacob Davis

15:34

So I was, I was meeting with a buyer yesterday, coming from Indiana, and they’re like, Yeah, I was looking at, you know, your market, and it’s like, tripled in five years. Or he asked me, he was like, did you ever think that? Were you surprised by what your market has done here? I was, like, shocked. Like, you know, who would have thought pricing would more than double, you know, at least double in five years. That’s crazy.

 

Jarod Evenson

16:06

You know, how many people I know that were like, I’m gonna wait for the market to cool down. They didn’t buy, and it’s been four years, they still haven’t bought. They were able to, but they could have back before. You know, like, how much regret they might have about just not buying the house, just like it’s crazy.

 

Jacob Davis

16:30

But our next video, we should get T shirts to say no regrets, you know, but misspelled,

 

Jarod Evenson

16:38

dude, that’s so funny. Somebody just on my Liberty Lake community Facebook page yesterday, said, looking for a tattoo artist, and I took a picture of someone with that tattoo and and posted and said, I just got this one for 20 bucks. Let me know if you need better contact. And said, no records,

 

Jacob Davis

16:59

that’s a good movie. Well, cool. So I think that’s about all I had for real estate related stuff. Coug stuff. Got football season coming up. I’m excited about that. Are you gonna go to any games this year?

 

Jarod Evenson

17:18

Yeah, I think they got me doing the coin toss for the first game, so they’re getting that out of the way. That’ll be cool. Oh, wait, no, no, that was, that was for a pee wee Football League game. Yeah, I plan on coming down quite a bit. I’m stoked. I think it’s going to be a fun season. You know, take all the pack 12 mess and put that behind us, and let’s just move forward and work with what we got and go win some football games. And the thing is, I think we have a good chance of winning still.

 

Jacob Davis

17:52

So I think we’re going to go undefeated. I think we’re going to go to the national championship. All right, just joking, hey, we could go undefeated this year.

 

Jarod Evenson

18:05

Yeah. Well, you know, we still have our bowl game alliances, so if we, if we win, I mean, we’re going to be obligated to go somewhere good for a game. But I honestly, as long as we beat the Huskies and we beat him good, I’m gonna feel great.

 

Jacob Davis

18:23

That’s all I care about.

 

Jarod Evenson

18:26

I mean, obviously you want to win more than that, but that’d be cool. There was a cool there was a cool video that came out, Jack and Ryan leaf was on it, and a couple legends from Oregon State were on it. They did a pack two after dark thing at the pack two media day couple weeks ago. There’s a there’s a video on it, and they’re talking about everything, you know, pack two football, which I’ll have to shoot you the link to it, but pretty slick.

 

Jacob Davis

19:00

So check it out. Go, go. Kids, well, uncle, that’s all I got for today. Just kind of want to do first of the month market update. I think we should hit that on the way out.

 

Jarod Evenson

19:14

Let’s do it again. Let’s, let’s do a first of the month update next month too,

 

Jacob Davis

19:19

September.

 

Jarod Evenson

19:21

Yeah,

 

Jacob Davis

19:21

we’ll actually have to plan that out. Do you remember? Peace out.