Kennewick, Washington is one of the cities in the tri- cities area of Washington
state. The other cities are Pasco and Richland. Kennewick was listed #10 on
the list of top performing cities in 2014 by Forbes magazine. Kennewick is known for its stable economy, thus has a stable housing market.
The Calculation for Kennewick, Washington (Dave Ramsey Misery Index)
The Dave Ramsey Misery Index consists of two numbers made out in the form of money lost due to Dave Ramsey’s advice related to home purchases. (All numbers are based on an after tax calculation) They are as follows:
- Home Price Appreciation (Calculated based on actual data per market) I calculated the actual price difference between the median home sale price in October 2011 (when I read Dave’s advice about home buying) and the median home sale price for March of 2015. This area is represented by Kennewick, Washington. The median home sale price increased 20% for that time period. Using the example of a $166,875 home in that market as of October 2011, the same home would cost $32,755 more or $199,630 as of March 2015. (Information gathered from Zillow Real Estate Research )
- Higher Mortgage Payment. The second number is the difference between what the mortgage payment would have been in 2011 and what the mortgage payment is now, calculated over the life of the loan secured in 2015.
Expressed in numbers the Dave Ramsey Misery Index for Kennewick, Washington would be as follows:
- Home Price Appreciation $32,755
- Increased mortgage payment next 360 months $53,804
TOTAL MISERY $86,559
Each time I post a new misery index it will be for a particular community showing the misery Dave Ramsey has caused his followers
regarding his advice to wait to purchase a home. Back in 2011 I was screaming at the top of my blog posts and videos that it was time to buy a home, an investment property or a primary residence. With interest rates as low as they were and home prices at unbelievable prices it was almost impossible not to see the writing on the wall as to what was going to happen. It has happened. Going forward it appears to me that we are faced with a high probability of increased inflation. With that being said, it is still a good time to buy while interest rates are low and before prices go higher! And, please don’t listen to Dave Ramsey when it comes to buying a home. His advice has created a lot of misery for folks.