I'm off to a hot start!

Hopefully my quick start in 2026 is a foreshadowing moment for the local industry. I have had allot of activity with a 150% increase of January of last year in closed transactions. That could just be an anomaly but my pipeline is as full as it has been in at least three years.

Interest rates have relaxed just enough to get some fence sitters to jump in. Inventory has also risen just enough to give buyers a decent selection. Tight inventory is very difficult on buyers who often feel like they are settling rather than getting their 'dream home'. That can be a real turn off for many. 

The entry. level market is giving us no shortage of sub median starter homes. From 2019-2023 it was really hard to find any single family detached, three bedroom, two bath move in ready home under $500k. Today there are hundreds available to buyers and with the downturn in rates they feel even more affordable than the $450k pricing now widely dispersed in the market.

Although the Clark County median home price is still a bit higher than last year the sub median market has widened. There has been a fair amount of mid-tier and high-end homes selling as well and that is keeping the overall median artificially high. 

If you are a first time home buyer, the market has definitely moved in your favor. Reach out to an agent and take a look at what's out there, you may be surprised.

Real Estate Market 2026

Happy New Year! This year is going to be a tough call for projections. We have favorable interest rate trends that should act as a relief valve for slow activity. We also have some instability in in general economic flows and that could move the valve the other way a bit. 

Allot of aging boomers are selling off their larger family sized homes looking to move to warmer climates or just downsize into a smaller one level home. Normally this is a great thing as it provides a boost in the local market. The troubling thing in our current situation in the USA is that demand for resale homes over 2200 SF is falling. Families are notably smaller on average these days and home prices have gotten expensive making larger homes less attainable for families.   

That said, I find that a 2000 SF two story home is often less expensive than a 1500 SF ranch style home. These small to mid sized ranch homes on a single floor are coveted by both new home buyers and older downsize crowds. The down-sizers typically hold a buying advantage often paying in cash or with huge down payments and the ability to outbid entry level buyers. 

Entry level buyers should not hesitate to look at a bigger 1990s-mid 2000's two story home as pricing is often favorable versus competing against retirees with more money for the 1500 SF ranch homes.

Lower interest rates will attract buyers that have been sitting on the fence for the last couple years waiting for more buying power. These buyers, mostly entry level need to be careful because the window to act is often very tight. Once rates establish themselves at a clearly lower level, the market tends to pickup and prices rise. Even with lower rates a higher home price can thwart buyers just as much as a higher interest rate. Picking up a house today at 6.5% can and will payoff later even if rates drop further. You locked in a lower home price and can refinance later at a lower rate when the time is right. 

People looking for a value for money opportunity should look at 15-30 year old resale homes with two stories and 1800-2200 SF. This is the current sweet spot in real estate for entry level and mid tier buyers with $450-600k in buying power.

I feel like the 2026 has potential to see a small to medium increase in activity which would likely start moving prices up again perhaps as soon as this summer. I do not see a boom on the horizon especially if the legislature decides to add an income tax. Do not be fooled by politicians that say only the "rich" will pay the tax, we all pay the tax if not directly, indirectly. Our strong real estate market is driven by the State of Washingtons booming economy. The tax load is already too high and the economy is going to suffer, greedy politicians with egregious spending habits will slow the economy and ultimately act as a counter to the real estate market. 

My best guess is will should see appreciation in the low single digits this upcoming year. 

Water views dominate desirability, but about City views?

Human beings consistently prefer a view over water, be it the ocean, a lake, or river. Water has a calming effect. The second most "desirable" view tends to be natural landscapes. Views of a prominent mountain or a gorgeous landscape like the Columbia River Gorge. Cityscape views come in third and have the most variability and risk.

Landscape views tend to lose in the night time and sometimes a water view does as well especially in coastal and rural areas. The one view type that tends to shine at night, literally and figuratively, is an urban landscape.

The long standing issue with urban landscapes is the near constant threat of some future urban project rising up to block that city view. Some really high end buildings hyper rich markets have literally bought airspace rights over other structures to create permanent view corridors in dense cities like Hong Kong and NYC. 

Urban landscape views are often at the best at night as bright city lights dance in the windows of urban condos. They are mostly protected from the weather as well. Cloudy days and nights do not ruin the views. About the only natural event that messes with a city view is dense fog.

Vancouver has an interesting trifecta opportunity with many of its urban views. The Downtown area lies on the shores of the mighty Columbia River offering many homeowners a lovely water view that also lights up at night with reflections of the cityscape all through the night. Towering Cascade volcanoes are also visible from many locations as well. Some of Vancouver's waterfront neighborhoods both in the urban core and in the suburbs along the Columbia share this rare trifecta of views.

At the end of the proverbial day, most people will still gravitate towards a water view. This certainly helps explain why waterfront properties tend to sell for substantially more money than other view types or no views at all. City dwellers in Vancouver can enjoy all three view types from the same picture window. You just have to have really deep pockets.