Real Estate market in crisis

Real Estate market in crisis »Play Video
YAKIMA, Wash.-- A rebound in the housing market around Washington State is not having a local ripple effect. Yakima isn't seeing it. In fact, analysts say it's worse than last year. Some homeowners are dropping their prices to close a deal.

Jeri Martinez has lived in her home for 10 years. When most of her kids left the house, she decided to downsize and put her place up for sale. But, it hasn't been easy.

"They're not selling," she said. "Houses all over the place aren't selling."

"Selling times have increased," Broker John Neidhardt said. "It's taking longer right now."

Some homeowners are doing what they can to speed up the process. That includes dropping their prices.

"If it doesn't sell, it's either that or you have to take it off the market," said Martinez.

Another reason homes aren't selling is that it's harder for buyers. Restrictions like requiring larger down payments make it harder to qualify for a mortgage.

"Right now, it's probably three times as difficult as it was four years ago to get a loan," Neidhardt said. "So that hasn't changed much and it's more requirements every day."

Right now, there are 15% fewer homes on the market compared to this time last year. Realtors say it's normally double what Yakima is seeing now and the average sales price has also dropped.

There might be hope, though. An article in Business Insider ranks Yakima among the 15 housing markets projected to grow the most in the next five years. It projects an almost 8 percent increase in prices.

"There's houses, you know, that we've looked at that we want to buy and stuff," Jeri said. "But we can't until we sell this one."

For now, people like Jeri are eager to go from being a seller to a buyer. In the past, Yakima's real estate market has taken up to two years to follow the trends of bigger cities like Spokane and Seattle.