Here is a link to an article in tonight's local newspaper, The Wenatchee World, citing Wenatchee as having the fastest appreciating home values in the entire United States.

Values have risen at the rate of 25.6% from March 2006 to March 2007.  We have experienced a 6% appreciation factor for the first quarter of 2007. 

This is good for current homeowners, as their nest egg grows fatter and fatter.

This is not such good news for first time home buyers who don't have equity from a previous home.  First time home buyers are having trouble saving enough money to make a decent down payment on these increasingly expensive homes. 

I'm starting to promote a more affordable alternative for the first time home buyers.  This is available through a decent supply of Wenatchee area condos coming onto the market in the $125,000 - $140,000 price range.   In addition, there are several high end condo developments currently under construction. 

There are several reasons why people prefer single family homes over the condo option but, when economics dictate, condos are a good option over continuing to rent.  It's a stepping stone into home ownership.

One objection to the condo option is having to pay the monthly association dues.  The reality is, the association dues are comparable to what a person would spend over time on maintenance of a single family residence.  It's just a forced monthly savings to cover those expenses.  In most cases, the monthly dues also covers some of the utilities for the unit. 

Just some random thoughts about how to deal with the ever increasing prices, burdening the first time home buyers.