As I have posted before, Snohomish County has seen an ever declining market in the vacant land and lot sales sector. Market corrections and slow economic times have forced a lot of builders, developers and custom builders out of business, builders to abandon projects, and/or projects to be foreclosed on.
With that said, there are two types of business out there when looking at raw and vacant land: old business and new business.
Old business are lots and developments that builders and developers could hold onto and continue to build on with the hopes of future sales. New business are the lots and developments that have been foreclosed on and are now back up for sale at a price reflecting current Snohomish County real estate conditions.
In 2006, Snohomish County raw and vacant land was being purchase by large developers that where looking to capitalize on affordable housing opportunities and growth. Seattle real estate was so expensive and many residents decided that a single family home under $500,000 was more appealing. The surging market forced raw and vacant land prices to soar and lots in Marysville where selling for $135,000 – $160,000 and now in the new business lots in the same city are selling for $55,000.
The majority of the bank owned lot sales have recorded in the 2nd quarter of 2009 and will Snohomish County will continue to see this trend, at least, through 2010. After all the old business is gone the Snohomish County real estate market will hit its bottom. A new business cycle is upon us and affordability is coming back to Snohomish County. I look for lot sale prices, in late 2009 and 2010, to be really affordable for buyers looking to build a custom home or looking to purchase affordable new construction.
1st Quarter 2009 Snohomish County Lot Sales
| City/Area | Plat Name | ||||
| Arlington | Sun Peak Estates | ||||
| Arlington | Haller City | ||||
| Northcreek | Camden Meadows Ph. 1 | ||||
| Northcreek | Westcastle | ||||
| Northwest | C D Hillmans | ||||
| Northwest | Alder Grove Estates | ||||
| Skyvalley | Skoglund Estates |
2nd Quarter 2009 Snohomish County Lot Sales
| City/Area | Plat Name | ||||
| Everett | Peoples Bank Short Plat | ||||
| Everett | Hamstra Short Plat | ||||
| Lake Stevens | Meridian Estates | ||||
| Lake Stevens | Vinje | ||||
| Marysville | Summit at Rock Creek | ||||
| Marysville | Sunnyside Estates | ||||
| Northcreek | Camden Meadows | ||||
| Northcreek | Crossing at Northcreek | ||||
| Northcreek | Jackson Wood | ||||
| Northcreek | Jackson Wood | ||||
| Paine Field | Gibson Cove 2 | ||||
| Skyvalley | Skoglund Estates |
Building permits being off are still part of the lack of confidence that a builder can make a profit. The market in most areas, are selling well below cost to build new now. This will continue till the inventory subsides. There is another problem. Banks are unwilling to loan for construction. With out financing only the public companies and very few cash builders will be able to construct.
We have seen many local banks, here in WA, stop lending entirely which has hurt the smaller builders who are in good standing. Now that lot prices have corrected, it is a great time for builders, especially the smaller ones, pick up a few lots to start building their inventory pipeline.