Grant County bucks housing trend

Statewide affordability drops while county numbers stay strong

COLUMBIA BASIN — House affordability is diminishing statewide, but Grant County is one of the few areas of the state bucking that trend, a recent study shows.

The study, released last month by the Washington Center for Real Estate Research at Washington State University, rates housing affordability on a scale called the Housing Affordability Index, measuring the ability of a middle-income family to purchase a median-price home using a 30-year mortgage at prevailing interest rate.

The state's index slipped at the end of 2004 to 116.9, down from 134.4 in the third quarter of 2004. A score of 100 means a typical family makes enough to buy the median house. When the index falls below that, it means buyers face serious financial constraints to buy a house.

In the fourth quarter of 2004, Grant County had an index of 195.1 and Adams County had an index of 176.9. Grant County's index was the third highest in the state, trailing only Columbia and Okanogan counties. The median price of a home in Grant County was $100,000 and in Adams County it was $114,400.

In comparison, Whitman County had an index of 138.8, with a median price of $158,600. Kittitas County had an index of 124.9, and a median price of $184,000. Whatcom County had an index of 98.1 with a median price of $230,700, and King County had an index of 97.8 and a median price of $331,1000.

"Housing prices in Grant County are among the lowest in the state," said Glenn Crellin, director of the WCRER. "Any community that has low prices, if they have an average income level, the result is a high level of affordability."

Crellin added that Grant County goes against a statewide decline in affordability in a market that, although still strong, will likely soften a bit, given the rising interest rates. However, this should not be a significant impediment to buying a home.

Real estate agents in the area had differing views on the subject.

Rich Engelmann from Re/Max said that the reason for the county's high index is that there is still plenty of affordable housing in it.

"As long as we have supply for the demand, the price is going to be good," he said, adding that that is not the situation in other areas of the state. In the west, there are more people than there are houses, driving the prices up.

Bea Stump, from ABC Real Estate, said that although the market is still strong, prices are going up, leaving people who might have been able to buy a house in past years, out of the market.

"Every time prices go up, that squeezes some people out," she said.

This is due in part to new people moving into the area, higher cost in construction materials and outside pressure into the local market.

"It's still a strong market, but costs are definitely increasing," she said.

Even subsidized housing is experiencing some changes.

John Poling, executive director of the Housing Authority of Grant County, said that the market has stayed steady but when the HAGC funds new projects, the leasing process is slower than it used to be.

"It's not like the demand is not there, it's just a bit slower,' he said.