Browsing the blog archives for February, 2010

2010 Community Growth Update Meeting

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Gorge Real Estate News

I went to the Annual Growth update meeting to hear what was going on and came away with some good information. I took some notes on what I found interesting so here they are:

First up was Bernard Seegar the planner for the city of Cascade Locks (CL). Having grown up in Stevenson I know Cascade Locks and its history pretty well. That town has been barren for ever! I was impressed though with what they have been up to for a few years. It sounds like they have two large opportunities that may come to fruition? The first being the Bridge of the Gods Resort & Casino and the second being Nestle’ Waters a bottling plant for spring water that happens to be abundant in Cascade Locks.

The Casino has been a hotly debated subject now for a long time. The EIS (environmental impact statement) has been completed but not yet released. The city of Cascade Locks is highly optimistic that the Casino will happen though. It would bring plenty of jobs to the area but at what cost? I am not sure about that but for the most part think it is the first good thing that has happened to Cascade Locks maybe ever? In addition to that the city is courting the Nestle’ company or maybe the Nestle’ company is courting Cascade Locks. Apparently the Nestle’ conglomerate is continually looking for places to get good spring water and also to fill a void in their map of the USA that shows no plants in the northwest? Go figure!! Evidently CL has everything going for it and it may happen. Here are a few things that both sides have had to do so far:

Water well fish test – they need to find out whether fish can live in well (ground) water and to do that the Feds are requiring a 12 month test that will get the fish through the 4 season cycle. If they stay alive and healthy then that part is good. There also needs to be a water rights exchange between the Oxbox National Fish Hatchery and the city of CL which is looking like a great possibility. Nestle’ would be investing $50 million to build the plant! This plant would create about 50 jobs and a projected 25 to 50 spin-off jobs. That is good for the area but with a low impact on the environment which will help us all maintain our lifestyle in the Gorge!

The second speaker was Don Stevens, mayor of North Bonneville (NB). He did not have much time bit he wanted to share some of the things that NB has been up to. The big item was that they will be replacing their water treatment plant. They have their funding and will be breaking ground this coming week with a target completion date on October 2010. This will give them more capacity which means more businesses which means more jobs HOPEFULLY! NB has lots going for it these days and I hope that good things continue to happen for the community!

The Port of Skamania County was up next – the Port General Manager is John McSherry. I have net with John before and think he is a good person and has a great style about him. I think that everyone enjoyed his presentation because of that style. The Port’s focus is to create private investment through infrastructure. That means they have developed land and built buildings to provoke business to get involved. A good indicator of that is the Bingen based company Insitu has leased the largest space in the Tichenor building at Stevenson. The Port also has a focus to create jobs, create a larger tax base, which helps our county be less reliant on those almighty timber dollars and improve the quality of life. A pretty good organization to have in the area! Of course Ports were originally created for these activities but it appears that we have a good group working down there for our benefit.

Skamania County PUD’s Manager Bob Wittenberg spoke next – he explained some interesting facts that we should be aware of and it covers why rates and fees go up. There is a BPA line that comes off the Bonneville dam and splits one going west to Vancouver and one going east. The line going west ends at the White Salmon River, that line and fasteners is old and will need to be replaced someday soon. He mentioned that if it does fail we would be in the dark for 2 to 3 days and that is a long time for today’s residents! He stated that if the Whistling Ridge Wind Farm was operational that we could basically flip a switch and be back on quickly which means very little discomfort for us. Bob also spoke about Carson’s aging water system and recent water rate and hook up increase had to be made to pay for the upgrade of that system. I happen to know a little about that system and he is correct. The folks that are in charge of that system have been doing a bang up job and really know there stuff lucky for all those residents that are able to turn the tap on and have good water come out! One other point to make is the electrical rates we all pay today are very low compared to many other areas not in just our state but the country. So consider ourselves fortunate for that!!

The City of Stevenson gave us information about the aging roads inside the city limits and that a roads life span after paving is approximately 12-15 years. They budget for these things and it obviously take good planning, etc. to get it done. One issue that was lightly touched on is the amount of finished lots that the city of Stevenson has. I am a Realtor with a background in new construction sales, marketing and development which means I know about sales velocity and absorption – this town has too many lots, too close together in an area that historically has low absorption which means considering price point could take many years to take those lots down. It will be interesting to see how the banks and developers price these lots, it should be pretty low or at least when they finally sell those prices will be low. All in all the city of Stevenson people have done a good job and at least for the Washington side of the Gorge seems to be the most popular destination and place to live for outsiders coming in.

The Skamania County Economic Development Council spoke shortly as time was getting late about their agenda which is a very good one in my opinion. Their assistance with grant applications for small businesses, etc. is something that more should take advantage of. Please contact Peggy Bryan at the EDC for more information – 509.427.5110.

Skamania County was up next with District 3 Commissioner Jamie Tolfree giving the presentation. Jamie gave us some numbers for building permits and what areas in the county were those permits being used, locations of new homes and commercial buildings. Also she said that the population of the county in 2009 was 10,800. I always like to know that it is interesting to me. Gosh I think that back in the 1970’s before the second powerhouse construction began I think it was 2,400 +/-? I could be wrong so do not hold me to it. Building permit activity went down in 2009 which of course would have been expected and it should not increase in 2010.

Again I think this was a great event and one that I will attend next year and maybe I will see you there? Take care, Bob

Deeper Columbia River channel reaps early dividends

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Gorge Real Estate News

By Erik Robinson Columbian staff writer Saturday, February 20, 2010

 A sign welcomes Washington State Senator Patty Murray to the Port of Vancouver on Friday. Ports praise development anchored by investors’ certainty about river The economy in Southwest Washington is already benefitting from an as-yet-unfinished project to deepen the Columbia River’s shipping channel, U.S. Sen. Patty Murray heard during a round-table discussion today at the Port of Vancouver. The $190 million project to deepen the channel from 40 feet to 43 feet will be finished by the end of this year. Construction got under way in 2005, following almost two full decades of planning and lobbying by ports, business interests and labor groups along the river. Critics characterized the project as an economic boondoggle that would harm aquatic life in the river, but proponents told Murray today that the investment has already paid dividends. A $230 million grain elevator is under construction in Longview. Related story Time now to make tough decisions on I-5 bridge, Murray says “This project would never have happened without the promise of this channel-deepening project,” said Ken O’Hollaren, executive director of the Port of Longview. The deepening project got a $29.6 million jolt of federal economic stimulus funding to finish the job this year rather than two or three years later. The final piece of funding allowed contractors to use underwater explosives to scour out three feet of hard basalt in the river bottom between Ridgefield and St. Helens, Ore. The blasting occurred in November through February, shattering 600,000 cubic yards of black rock. Murray told local business and labor leaders that the deepening project ensures the river will remain the “lifeblood” of the economy in Southwest Washington. “Clearly, this is going to create economic vitality in the long term,” she said. Eroding jetties Protecting that channel will require a massive new investment by Congress through the Army Corps of Engineers, however. The jetties that protect the mouth of the river, originally constructed between 1885 and 1917, are eroding badly. The corps estimates it will take 18 years and as much as $470 million to rehabilitate them. “All the work that we’ve done to deepen the channel to 43 feet could be undone,” Murray said. The jetties damp down waves from the ocean, while also serving as a barricade against beach sand that would otherwise clog the shipping channel. The Pacific Northwest Waterways Association, an industry group based in Portland, noted that the jetties protect a shipping industry that annually hauls more than 40 million tons of cargo valued at $16 billion. Longshoreman Cager Clabaugh drew chuckles when he noted that the promise of a deeper channel started shortly after he started the job after high school. “I can see the guys starting now are going to hear, ‘We’ve got to get the jetties fixed,’” he said. Turning serious, he added: “If a serious breach were to happen, it’s going to kill the economy up and down the river.” Murray alluded to the expensive and protracted construction schedule. “Realistically, it’s going to take a community working very, very hard and sticking with it over a long period of time,” she said in an interview. “This is something that takes long-term commitment from the leadership on every level.” Contractors conducted $30 million worth of interim repairs between 2005 and 2007. Corps officials believe the interim repairs might have extended the life of the jetties another 10 years, providing time to get the major rehabilitation under way. The phased rehab project will cost close to a half-billion dollars. “It will be hard, it’s a lot of money,” Murray said. “It’s competing with a lot of other projects out there, but I think the economic implications are very clear.”

Erik Robinson: 360-735-4551, or erik.robinson@columbian.com.

Mid-Columbia – January Residential Highlights

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Gorge Real Estate News

 

Some analysis from the Regional Multiple Listing Association tells us that the market has been up and down without too many highs and lows. That means things were steady not too fast and not too slow, however living the market you know that it has been slower than fast.

 

The inventory is what I have been keeping an eye on and not just all inventory but quality inventory. In the heart of the Gorge it is low and we just do not have that much to choose from. That makes what we do have a good value at current prices. Bob Anderson

Closed and pending sales

increased dramatically when

comparing January 2010 with the

same month in 2009. Pending sales

increased 38.5%, while closed sales

jumped 73.7%. On the other hand,

new listings fell 12%.

Pending sales also increased 16.1%

(36 v. 31) when comparing January

2010 with December 2009. However,

closed sales fell 13.2% (33 v. 38) and

new listings increased 58.7% (73 v.

46) driving inventory to the highest

it’s been since April 2009.

At the month’s rate of sales, the

627 active residential listings would

last approximately 19 months.

Sale Prices

The average sale price for January

2010 was up 5.7% compared to

January 2009, and the median sale

price increased 18.9%. Compared with December 2009,

average sale price increased 24.7%

($263,900 v. $211,600) and the median

sale price was exactly the same

($220,000).

Courtesy RMLS

Clark County – January’s Residential Highlights

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Gorge Real Estate News, Uncategorized

Sales activity continued to grow

in Clark County when comparing

January 2010 to the same time

last year, though not quite as

dramatically as last month.

Compared to January 2009, closed

sales increased 34.8% and pending

sales were up 20.2%. However, new

listings fell 3.1%.

Pending sales were also up 18.5%

(422 v. 356) when comparing January

2010 and December 2009. However,

closed sales fell 38.4% (275 v. 422).

and new listings grew 80.1% (942

v. 523) driving inventory to double

digits for the first time since May

2009.

At the month’s rate of sales the

3,407 active residential listings in

RMLSweb at the end of January

2010 would last approximately 12.4

months.

Sale Prices

Contrary to the trend over the

last few months in 2009, the average

sale price for January 2010 actually

increased 4.2% compared to January

2009. In addition, the median sale

price rose 5.5. Furthermore, comparing January

2010 with December 2009, the

average sale price increased a

slight 0.3% ($245,100 v. 244,400)

and median sale price was up 3.9%

($219,900 v. $211,600).

Courtesy RMLS

Excerpt from an Executive Summary of a Recent Market Analysis

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Real estate News

This is somewhat interesting as my analysis of a homes position in the Gorge. This home has been marketed by the owners for quite sometime with no results. They asked me to perform an analysis which I happily did and I thought that I would share my thought process in this paper. What you see below is a step by step answer to the questions that the seller/owner wanted to know:

 1. The price range would be $180k to $190k – I say this because I may have a buyer that might pay $190k and if he is not interested anymore it would be less. The market information in the packet tells us that the market has disintegrated dramatically mainly from the CAM homes on Island Way going back to the banks and the banks having a “Fire” sale. You are and have been competing with larger square footage homes with more baths, bedrooms and much newer. This has affected your marketability immensely and continues to do so. Even more recently there were two homes one on Amber Way the other on Aria Way that went almost as they hit the multiple listing service and with multiple offers. This was due to nothing more than price and that price being very low for the product.

2. The fee for services would be 7% because you want all the other agents out there to pay attention to your product and with others paying 6% or even 5% this is one competitive advantage that you desperately need. In addition I will get your property exposed to all the major real estate search sites and search engines such as Windermere.com, Trulia, Zillow, Yahoo, Craigslist and Google.

 3. The listing agreement duration can be anything that you want. I typically list for six months, but sometimes will go ninety days. If you wanted to get out of the agreement early my policy is to grant your wish.

 4. The properties that I personally sold in North Bonneville were the following: a. 620 E Shahala – 3 bedroom, 2.1 bath with 2096 square feet at $282,000. b. 1229 Island Way – 4 bedroom, 2.1 bath with 2156 square feet at $195,000. 5. Other data would include out of the comps listed I broke out the one levels which there were four:

 108 Aria WAY, North Bonneville 98639 S 3 / 2 1651 2006 8055748 $209,000 [Detail] [Photos] [Map] Status: Sold Lot Size: 5,663 Sq Ft Views: MNTAIN Garage: 2 Ref#: 1 Sold Price: $205,000 Sale Date: 05/27/2009 DOM-Closed: 357 Community: Skamania Co: North Bonneville Project: Aria Oaks MLS Area: 112 Remarks: Huge $20K Reduction! Like New Built in 2006,Vaulted Living Rm,Upgraded Whirlpool Appliances – FS Fridge, Dishwasher, Built-In Oven,Microwave & Range w…

1204 ISLAND WAY, North Bonneville 98639 S 3 / 2.1 1663 2007 9020799 $199,000 [Detail] [Map] Status: Sold Lot Size: 4,356 Sq Ft Garage: 2 Ref#: 2 Sold Price: $183,000 Sale Date: 04/20/2009 cDOM: 6 Community: Skamania Co: North Bonneville Project: North Bonneville MLS Area: 112 Remarks: The look and feel of a tight knit community; the only thing missing is YOU. North Bonneville with its green space, parks, ball fields, tennis courts, …

610 SHAHALA, North Bonneville 98639 A 4 / 2 1456 1979 9019388 $195,000 [Detail] [Photos] [Map] Status: Active Lot Size: 8,712 Sq Ft Views: MNTAIN Garage: 0 Ref#: 3 DOM-Active: 337 Community: Skamania Co: North Bonneville MLS Area: 112 Remarks: Cute, well maintained rancher on a large lot which backs up to designated park. Panoramic views of Oregon & Washington hills abound from everywhere, i…

105 AMBER WAY, North Bonneville 98648 P 2 / 2 2320 2006 9075295 $195,000

This tells us that the one level homes went for a higher price but most of them were of a newer age. Please look for the reports coming your way that present more detail for your study and discussion. I would love to come and visit to discuss the data if you would like. Just email me or give me a call.

Thanks again for the opportunity, Bob

Bob Anderson Windermere GTRE

www.Anderson.MyWindermere.com

boba@windermere.com

509.427.7043 – Direct 509-427-2770 – Fax 360.440.9185 – Cell

Saints WIN Super Bowl 44!!!

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National News

Can you believe it? The New Orleans Saints have finally shocked the world and won their first ever Super Bowl Title!! They aint the aint’s no more one has to say about what the Saint’s faithful were called back in the 1970’s, it was so bad that they wore brown paper bags over their heads to hide the shame. Now that has all change with Sunday’s besting of the Peyton Manning lead Indianapolis Colts. The Colts just three years removed from their last title were coming in as the favorites but New Orleans had destiny on their side and it made the difference. Bourbon Street must have been alive and kicking wildly after the event which has been over 40 years in the making.

The Saints played all out with even going for it on the 2 yard line which failed but then got the ball back and kicked a field goal. Then after half-time they kicked off and played an on side kick and got it! They eventually outscored the Colts 31 to 17. But what iced it for them was when four time NFL MVP Peyton Manning driving down the field for what looked like a score threw an interception and the Saint’s defensive back took it to the house for a touch down. The stadium went wild as I am sure the state of Louisiana did!! Congratulations to owner Tom Benson, the Saint’s organization and all those fans who have hung in there for so very long!

Inventory in the Gorge Could be Better?

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Gorge Real Estate News, Real estate News

We have been waiting for the market to pick up which is what we think is happening now what with more and more people looking around for properties. That is exciting and all but in reality we do not have that much quality inventory to sell them. Pricing has adjusted nicely on most of what was offered but we are still in need of better perceived value product to sell. One segment that has been HOT is the Repo market. Banks are getting properties back and are getting those on the market at under market value and they are getting multiple offers in most cases. It is difficult to discover a property, let your buyers know about it, get prepared and write the offer before someone else does. I lost out on one just last week and I do not like to lose out!!! Tough for me huh and my clients as that would have been a smashing deal!! The industry itself is not helping matters as the lending industry is a mess right now. Money is difficult to get because lenders appear to be sitting back waiting out this recession fat from the Tarp/stimulus checks from Obama and not caring about doing business. What is bad about that is we on “Main” Street are the ones who can pull the country out of this recession but we are being restricted from doing so by a lack of We have been waiting for the market to pick up which is what we think is happening now what with more and more people looking around for properties. That is exciting and all but in reality we do not have that much quality inventory to sell them. Pricing has adjusted nicely on most of what was offered but we are still in need of better perceived value product to sell. One segment that has been HOT is the Repo market. Banks are getting properties back and are getting those on the market at under market value and they are getting multiple offers in most cases. It is difficult to discover a property, let your buyers know about it, get prepared and write the offer before someone else does. I lost out on one just last week and I do not like to lose out!!! Tough for me huh and my clients as that would have been a smashing deal!! The industry itself is not helping matters as the lending industry is a mess right now. Money is difficult to get because lenders appear to be sitting back waiting out this recession fat from the Tarp/stimulus checks from Obama and not caring about doing business. What is bad about that is we on “Main” Street are the ones who can pull the country out of this recession but we are being restricted from doing so by a lack of money available to buyers. A very hard hit part has been manufactured home (MF) lenders; they have all but gotten out of lending on MF homes at this time. Trouble is that there are many MF homes up and down the Columbia River Gorge and we are listing them for sale and will sell them if we can find a money source. I do see the market getting better and consumer confidence building but this is an up and down struggle. There are some good buys out there today and people are always looking to better their lifestyle which a new living environment is the greatest impact on that. I would be happy to discuss any thoughts that you may have on this subject as it definitely is the big subject these days. Please just contact me. Thanks, Bob money available to buyers. A very hard hit part has been manufactured home (MF) lenders; they have all but gotten out of lending on MF homes at this time. Trouble is that there are many MF homes up and down the Columbia River Gorge and we are listing them for sale and will sell them if we can find a money source. I do see the market getting better and consumer confidence building but this is an up and down struggle. There are some good buys out there today and people are always looking to better their lifestyle which a new living environment is the greatest impact on that. I would be happy to discuss any thoughts that you may have on this subject as it definitely is the big subject these days. Please just contact me. Thanks, Bob

FHA’s 203k Loan is Great for Consumer’s

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Real estate News

Dealing with today’s Real Estate inventory can be challenging what with quite a few more bank repo’s out there. Some of these properties are in dire need of remodeling but are great deals. Most consumers do not have extra cash though to “rehab” these properties and some will not even finance at the state they are in. This is where the 203k loan comes into play. You can purchase a home close on it then get the money needed to fix it up all from the original loan. There are basically a couple of different kinds of 203k loans one for “minor’ or non-structural  repairs and one for more “heavier” repairs like fixing foundations, moving wall, etc.

With the “minor” repair loan you can receive up to $35,000.00 above the purchase price to improve the property which in some cases gets the house up to a “livable” state. We are seeing more and more properties that are in need of these types of repairs and is really the only way to get these properties sold.

The process is fairly simple but you will want to find a lender that knows what they are doing. After you locate a property and go through the paperwork process between you and the bank you then go through the loan application process beginning that process. Then you will need to get your contractor out to the property to go over the items that need fixing and get an estimate for these repairs. Then submit that to your lender which in tune will review and use that list to get the appraiser to review and inspect for the bank. After that is complete the loan package can be submitted, approved (hopefully) and then onto closing. After the property is in your name the repairs can begin and you will get the additional funds from the lender to pay for them. After that move in!

To take advantage of this lending product give me  a call and we can review your goals and look for that special property that fits your needs. I look forward to talking with you soon. Bob

Toyota CEO “I am Deeply Sorry”

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National News

Can you believe this one? It is estimated that the Toyota recall has risen to nine million vehicles world-wide, WOW! The once known for quality automobile maker is now struggling to save any resemblance of that label. Akio Toyoda, grandson of the founder was interviewed by the Japanese   network NHT as he was coming out of his hotel in Davos Switzerland and he apologized to their customers for this huge problem. After the interview he was seen leaving in a black Audi, which is always the case it seems isn’t it?

The issue now is that Toyota is getting back press from both customers and dealers for them not getting parts to those dealers so that they can fix the cars that customers are flooding the dealerships with. I imagine that is creating quite a problem for everyone! Toyota wants to get them to the factory that makes the gas pedal systems so that they can get new cars off the line with the safe pedal systems and then I guess get the parts to the dealers.

The company is awaiting federal government approval of a redesigned accelerator pedal that is being produced by its supplier, CTS, and has already been shipped to some of its factories, according to CTS.

I can also imagine that for Toyota it is an extremely complex issue to solve not to mention a costly one! For those of you who own the vehicles in question please be careful out there!!

Economy May be Humming, But Can it Last?

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National News, National Politics

Despite Predicted 4.5% Growth at End of 2009, Analysts Worry Forward Momentum May Fade with Gov’t Stimulus

 In a CBS news article they are saying that the economy may have grown at the end of last year for maybe the second straight quarter and possibly at the fastest pace in nearly four years?

 They ask the question has the recession ended. Some economists are saying yes but the ones that count officially are staying quiet.

We know that the economy has been “juiced” by the stimulus money so when that dries up where will we be? In fact will we even fell the effects of that when it happens or a few months later when we are behind the curve yet again?

They say that the housing market is creeping back and that was the cause of the recession in the first place. I have heard from some new home sales leaders in the Northwest that sales have picked up. Is that due to the spring market springing early this year or the fact that people are really out there ready to buy? I think a little of both which is easy to say but I have seen this type of behavior before. The buying cycles are real and affect the market and the economy.

In addition some markets like the Columbia River Gorge have too many home sites developed for the market to adequately absorb them in a timely manner. That creates stalling in the minds of buyers as they have no urgency to purchase, no fear of losing that “home site” to another.

It will take quite some time for this economy to crawl out of the hole it is in and that may be a few years? We need to be prepared for that and if you are in the market to buy  most anything you may find many compelling “deals” out there that you just can’t  pass up!