January 27th, 2010
NEW JOB GROWTH IN GRANT COUNTY SHOULD REVIVE EPHRATA AND MOSES LAKE REAL ESTATE MARKET
Owner/Realtor
Windermere/K-2 Realty
he total number of single family homes sold in Grant County declined 29% in 2009 as the local economy reflected the national recession. The median price of single family homes sold in 2009 fell only 4.5%.Graph Source: Realist/ NWMLS
However, two recent announcements should translate to a needed boost in the local real estate market.
The recent news that the BMW/SGL joint venture company is considering building a plant in Moses Lake to manufacture carbon fibers that would ultimately be used in the making of the electric “Megacity Vehicle” in Germany (See Columbia Basin Herald Article Link.) Moses Lake is one of only two sites in the world that is being considered. One of the reasons that Moses Lake is in the final running for this plant is the fact that BMW/SGL wants the production of this next generation vehicle to be a “Green” process including the use of hydro-electric power in the manufacturing process. This plant would eventually provide about 180 jobs when completed and would stimulate the local economy in the interim during construction of the plant.
The Port of Ephrata and a Washington Tire representative announced recently that construction will begin in April of 2010 on the first phase of a tire manufacturing plant on property sold by the Port. An import tax of 35% on tires manufactured in China has made it financially feasible to manufacture in the U.S. This will be one of the first tire manufacturing plants built in the U.S. in the last 25 years. If all goes well they could have the first phase of the project operational by end of 2010. The company representative said that by the end of the third phase of the project (likely in 4 to 5 years) they expect to offer more than 2,000 jobs to the local economy. (See Columbia Basin Herald Article Link)
Like the ongoing REC Silicon project and other completed construction projects, these two projects will provide a significant number of construction jobs which will stimulate the weakening rental housing market. The flow of employment dollars and capital expenditures during construction should shore up the home market and eventually the commercial real estate market.
Other projects like the $100 million bio-oilseed plant in Warden and the startup of the nearly completed Guardian Industries insulation plant in Moses Lake will also contribute to the speedy recovery. Eventually, (maybe as early as 2011) the permanent job hiring will begin on these projects and bring back the severely depressed new housing construction market. Both Moses Lake and Ephrata have new housing subdivision projects that have stalled or been stopped due to the current economic slump.
In my opinion the needed recovery in the local residential real estate market should begin by early 2011. The recovery in the commercial real estate market including expansion of retailing should follow in 2012. This year (2010) will provide a good opportunities for buyers.
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