Going Back To Nature
The Wyoming Business Report. “Residential sales are relatively static or down in most of Wyoming, but the markets in Cheyenne and Gillette are full-speed ahead, as energy-related industries are coming in. Despite the increased workforce, there is not a shortage of housing in Cheyenne yet. The average turnaround time from listing to selling a home is 90 days, and sellers are getting about 97 percent of their asking price, noted Patrick Graham, sales manager for Coldwell Banker Property Exchange in Cheyenne.”
“The Jackson area has had some high-priced luxury properties for sale recently. The Rubber Snake Ranch sold at a live auction for $3.7 million. It originally was listed for $6.85 million. Two other big ticket properties are still on the market: one on Spring Gulch that is listed at $175 million, and the Walton Ranch that is on the market for the first time at $100 million.”
“In Gillette, Harry Kimbrough, broker with ReMax, said foreclosures there are ‘nothing close to the national scale; not as prolific as in the Midwest.’ And Kimbrough thinks things are only going to get better. ‘Based on current indicators, things look really rosy here for the next 20-30 years.’”
The Jackson Hole News & Guide in Wyoming. “The situation for residents struggling to maintain their hold in Jackson Hole during the tough economic times is going to get worse before it gets better, according to an assessment of Teton County’s human services needs. Some of them may have held some of the more than 2,000 jobs Teton County has lost between 2008 and 2011. The construction industry has been the hardest hit since the recession began. ‘You look at the foreclosure list, and we all recognize names,’ said Susan Eriksen-Meier, a consultant who compiled the assessment for the county.
“Disabled residents face similar problems. ‘Our local service providers work hard, but the cost of land and housing makes acquiring any kind of institutional housing almost impossible,’ the summary says. ‘The few smaller, low-rent housing developments that have been used as stop-gaps in the past have been converted to condominiums or upgraded to justify higher rents.’”
The Highline Times on Washington. “Mike Gain, CEO of Prudential Northwest Realty Associates, is reporting that the pending sales of homes are picking up in Highline and West Seattle. ‘A lot of people who have been sitting on the sidelines are starting to get into the market. They are feeling that prices have finally hit the bottom and are actually beginning to rise again in some areas,’ Gain declared. ‘If you take the price of homes for sale, historically low interest rates and typical household income, buying a home today in our area hasn’t been this affordable since 1944. Our homes have reached record affordability.’”
The Seattle PI in Washington. “For years, Gary Eyring and his wife have lived and worked in a one-bedroom Seattle condo with tight quarters. But what’s made the space worth it is the stunning views. ‘We just love it,’ Eyring said. That love may not last, since the city has approved a proposed 400-foot-high tower that would block their view, change Seattle’s skyline and cast a long shadow over a nearby park.”
“The building, if it goes up, would come after another skyscraper aggrieved condo owners in Eyring’s building, the Cosmopolitan, several years ago. ‘It will block us out completely. It will completely take out all our views,’ said Eyrin.”
The Olympian in Washington. “A slow real estate market is being blamed for a $1.38 billion drop in countywide property assessments for 2011, to $24.74 billion, according to the Thurston County Assessor’s Office. Assessor Steven Drew said that a down economy and uncertainty at the state level have hit Thurston County especially hard. Drew said that job uncertainty at the state level make it less likely those workers are in the market to buy a bigger house to accommodate their families, and in some cases may be selling houses and becoming renters.”
“Drew said that until financing – particularly on higher-end homes – is more available, those properties will not sell and new construction will suffer. New construction accounted for about $301 million of the valuations, down $35 million from last year. ‘We’re seeing a continuing downturn,’ he said, ‘and our housing market and values are declining at a greater rate and will continue to do so because of that unique local effect.’”
The Columbian in Washington. “Home sales were on the upswing in August for the second month in a row as first-time buyers rushed to lock in low mortgage loan rates and take advantage of shrinking prices. Local experts aren’t ready to declare that the battered housing market has hit bottom. Tracie DeMars, an agent with Re/Max Equity Group in Vancouver, said local real estate agents don’t expect the pace of home sales to pick up speed until Clark County’s large inventory of distressed properties, primarily bank-owned properties, works its way through the system.”
“‘I pulled up 136 listings for a client and only eight of them weren’t short sales,’ she said. ‘I think we’re going to see foreclosures coming through for at least the next couple of years because there are still so many short sale’ listings, she said.”
The News Tribune in Washington. “A California real estate company has purchased Tumwater’s Sagewood subdivision, a 599-lot residential development that fell into foreclosure and has largely remained undeveloped since about 2006. Union Community Partners paid $6.4 million for the nearly 600-lot development, or roughly $10,000 per lot, a steep discount compared with lot prices during the housing boom, Tumwater permit manager Chris Carlson said.”
“During the boom, residential building lots sold for $90,000 to $110,000 each, he said. ‘It’s the largest subdivision I’ve ever processed,’ Carlson said about the site.”
“The Sagewood property has become overgrown with grass and Scotch broom, so the next step is to clean it up and market finished lots to public and private builders, said Kelly Foster, VP of land acquisitions for Union Community. Still, he called it a beautiful piece of property that unfortunately came to market at the ‘crescendo of the bubble.’”
“The site originally was developed by a Pierce County home builder called SoundBuilt. The city issued about a half-dozen building permits for the site in 2006 before work ceased because of the downturn in the housing market. Carlson said there are other subdivisions in the county, that also have been halted by the downturn in housing and are ‘going back to nature.’”
The Yakima Herald in Washington. “A large tract of land for a planned $100 million wine-themed destination resort and golf course northwest of Zillah that collapsed amid financial problems is back on the market. The 490-acre property along Nightingale Road is being offered for $6.4 million, according to a listing on the Commercial Brokers Association Internet site.”
“As conceived, the Vineyards included 230 single-family home sites, numerous rental units, a hotel and retail center, and an 18-hole golf course. But the Vineyards never got farther than a 2008 groundbreaking. The owner of the Nightingale Road site, a subsidiary of the Wisconsin private equity firm, Stark Onshore Master Holdings, wants to sell the vacant property as is and has no interest in completing the project, said Dave Smith of Bellevue, the listing agent. Stark Onshore Master Holdings foreclosed on the property last month. The foreclosure asking price was $3.5 million. There were no takers.”
“Doug Picatti of Yakima, one of the original investors who paid $250,000 for rights to a building lot, said he believes the project is viable with the right developer. ‘I believe there continues to be a tremendous amount of interest in having that type of property available in the marketplace,’ Picatti said. ‘The question is, from a market viability standpoint, can you pencil out the investment and a return on that investment given the state of residential development?’”
From News 1130 in Canada. “BC economists predict the province’s final home-sales number for this year will be slightly lower than last year, but prices will be at a record high. Economist Brian Yu says there is no housing bubble in the city and notes there is little evidence speculators are overly busy. ‘So, we don’t see that there are a lot of investors that are going to divesting of assets if the market turns lower. In fact, a lot of them are owner-occupiers and [they'll] sit tight.’”
“‘And as a result, I think on the listing side, on the supply side, we’re not going to see too much movement of an increase in supply that would flood the market,’ he adds.”
“But Yu does note the Chinese economy could be a wildcard, saying an economic slowdown in China could keep overseas investors from buying property here. ‘We definitely saw the increased demand and increased pricing primarily in areas like Richmond and the west side of Vancouver, while other areas were a little bit more tame,’ he says. ‘If there was a cooling [in China] and it does impact immigration levels those, of course, would be a negative for the demand for housing in the short run.’”
September 2006: ‘From Planet Jackson Hole in Wyoming. “For (Broker) Ron Miller, and many like him, the Jackson Hole real estate market is a cash cow, a golden goose, with an unlimited future. ‘In Jackson, the market doesn’t really go down,’ said (realtor) Linda Walker. Broker Ryan Olsen agrees. ‘We are immune to the up and down treads that plague many real estate markets,’ he says. ‘Our real estate market is essentially quite ‘bullet proof!’
‘I’ve always been amazed with this market,’ David Viehman says. Viehman compiles an in-depth look at real estate trends in the Jackson Hole area. ‘I’ve been in real estate for 25 years and I still think, ‘This is crazy. Why would anybody pay these kinds of prices?’ To make ‘those’ kinds of profit, would be the pat answer.’
‘This is a real active market now,’ Walker says. ‘With low inventories, buyers are getting off the fence,’ Viehman says. ‘Maybe their spouses are elbowing them and saying ‘we better get on this before it takes off.’ That feeds an urgency.’
‘Available property may be at an all-time low but ‘dirt pimps’ are flocking to real estate courses like ravens to an elk kill. ‘There are almost 700 realtors in Jackson Hole,’ Walker says. ‘That’s a lot. A lot of real estate agents have a main job because they are not selling.’ Miller wonders. “There’s only about 40 of us who do any volume. The rest of them, I don’t know how they’re making a living.’
‘Indications are a growing number of high-end properties in Jackson Hole are no longer vacation or second homes, but purely financial investments that sit empty. It is a trend noticed by one agent, Ray Elser, when he sees a ’spec home’ change hands ‘three, four, and five times before construction is ever completed.’
‘Sure, property taxes soar with each reassessment but banks keep homeowners ahead by refinancing Jacksonites into their neo-wealth status. ‘You don’t have to sell a property to realize gain,’ Miller says. ‘You can get a new appraisal and borrow against the property and then go buy more properties. And when you borrow the money back, a lot of people don’t realize when you go get an equity loan it is not a taxable event. So you’re better off pulling a million dollars out of a property, tax-free, and buying more with that.’
“‘Real estate values will continue to increase,’ Elser says. ‘My crystal ball can only see so far,” Viehman says, “it’s a little foggy, but there doesn’t seem to be anything that’s going to change the course.’”
‘There are almost 700 realtors in Jackson Hole,’
Ah, Jackson, my paradise lost…it was awesome in the early 70s.
Sounds like a hole to me….. a hole to bury housing crime syndicate operators in.
Best article in a while. I love Elser’s crystal ball that can only see so far. “it’s a little foggy”
And the condo that will not have a view once they build the tower next door? What were they thinking? What were they drinking?
‘If you‘re considering moving into a high-rise condo or apartment in Seattle for the views of Puget Sound, the Space Needle or mountain ranges, you might want to keep this in mind: City regulations do not protect private views, only public views. This is a lesson being learned the hard way by residents of the Cosmopolitan high-rise in the Denny Triangle, according to a story in Seattlepi.com. Residents there have already had one building go up a mere 18 feet from them and now another tower has been approved for construction.’
‘The price of developing urban density: Looking at each other 300 feet in the sky.’
This applies anywhere. I see 2-story condo bldgs going up here, and they do sell at the right price point, but the view they have now of the sunset or sunrise or ??? how long will it last? With so much undeveloped land around for sale, not long. I’m lucky we found a place with common area around it, now dedicated to flood control.
Super post Ben….I wonder if we can send a copy of the current Jackson Hole News to Mr. Viehman & Mr. Walker…How does the Crow taste guys….
“Mike Gain, CEO of Prudential Northwest Realty Associates, is reporting that the pending sales of homes are picking up in Highline and West Seattle. ‘A lot of people who have been sitting on the sidelines are starting to get into the market. They are feeling that prices have finally hit the bottom and are actually beginning to rise again in some areas,’ Gain declared.
For those of you outside of Seattle, Highline is not a place anyone would aspire to live, with a horrid school district. West Seattle is nice, but it’s schools are not much better, with its high schools being very poor. I’ve met a number of people from West Seattle who don’t know what to do now that their kids are about to enter high school. Remember, that 25K in private school tuition is not tax deductible.
“Mike Gain, CEO of Prudential Northwest Realty Associates, is reporting that the pending sales of homes are picking up in Highline and West Seattle. ‘A lot of people who have been sitting on the sidelines are starting to get into the market. They are feeling that prices have finally hit the bottom and are actually beginning to rise again in some areas,’ Gain declared.”
I’m pretty sure Mike just made this up, to fit his own personal fantasy.
Cause people with beachfront property DESERVE low cost flood insurance…
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Expiring flood insurance threatens housing market
Southern Maryland Newspapers | 16 Sept 2011 | Jeff Newman
Real estate industry warns of consequences
Fearing another blow to a still-fragile housing market, real estate agents are pushing Congress to grant a long-term extension to the National Flood Insurance Program, which is set to expire this month for the 10th time in two years.
Established by Congress in 1968, the program provides coverage to more than 5.6 million home and business owners in more than 21,000 communities nationwide that have adopted floodplain management plans in an effort to mitigate flood damage.
Though private insurers sell the policies and administer claims, the federal government sets rates and assumes liability for coverage.
The program has bipartisan support — the Senate Committee on Banking passed a bill last week that would grant a five-year extension. But the program fell into heavy debt after Hurricane Katrina and disagreements over how to reform it have stalled a long-term solution, leading to nine short-term extensions and five lapses since September 2008.
Many mortgage lenders require flood insurance for homes inside the floodplain. Private flood insurance is too expensive for most homebuyers, so floodplain homes have a hard time selling during lapses in the federal program, said Paula Martino, government affairs director for the Southern Maryland Association of Realtors.
During a June 2010 lapse, 47,000 home sales were delayed or canceled, according to the National Association of Realtors.
“Americans deserve access to affordable flood insurance, and the current uncertainty surrounding the program is already hurting many housing markets,” SMAR President Paul Fenton said in a news release.
“Americans deserve access to affordable flood insurance, and the current uncertainty surrounding the program is already hurting many housing markets,” SMAR President Paul Fenton said in a news release.
I have relatives living in Waterbury, VT. You’ve probably heard about the damage that Irene did to that town.
However, I’m pleased to report that everyone in my family lives on high ground. So, no flood insurance for the Slims, TYVM.
As an American I just want everyone to know…I don’t “deserve” a damn thing.
besides my inalienable rights that is.
“Americans deserve access to affordable flood insurance”
we’re so fubared.
People always seem to buy in flood zones without needing to do so. Here in the Boise metro area, the local town of Eagle is condidered the tony suburb. Much of Eagle is on a “bench” (bluff) above the Boise River. But quite a few suburbs are down on the flood plain, BETWEEN two branches of the Boise River. That’s right - they are on a SAND BAR between two branches of a sometimes very active river. Two years ago some demented doctor put in $1 million worth of expensive landscaping on his riverfront lot. Every last twig and pebble was washed away over the winter. He sued the Army Corps of Engineers but the suit was dismissed. IIRC the judge laughed him out of court.
Land prices are cheaper in the flood zone for obvious reasons. But this fact inevitably tempts a certain class of individual into buying (we called them “river rats” in the Midwest where I grew up).
No, these houses on the sand bar are among the most expensive in the entire metro Boise area.
See for example http://www.buyidahorealestate.com/Two-Rivers-Homes-for-Sale.php
Two Rivers is located between the north and south channels of the Boise River
They even put that in the ad! LOL
‘Available property may be at an all-time low but ‘dirt pimps’ are flocking to real estate courses like ravens to an elk kill. ‘There are almost 700 realtors in Jackson Hole,’ Walker says. ‘That’s a lot. A lot of real estate agents have a main job because they are not selling.’ Miller wonders. “There’s only about 40 of us who do any volume. The rest of them, I don’t know how they’re making a living.’
Uhm, well, they’re hiring out to be pole dancers and clowns at Birthday parties,in the winter time they teach skiing and “how to be a snow bunny” classes at the local ski resorts. ‘Cause tourists can be influenced to buy anything, any time, any where; their brain cells go on vacation, hibernate or something.
Drip, drip, drip…
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Solyndra execs will decline to testify at hearing
Solyndra LLC’s chief executive and chief financial officer will invoke their Fifth Amendment rights and decline to answer any questions put to them at a Congressional hearing on Friday, according to letters from their attorneys obtained by Reuters.
In the letters sent to the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations, attorneys for Solyndra CEO Brian Harrison and CFO W. G. Stover said they advised their clients not to provide testimony during the hearings.
The bankrupt company’s $535 million federal loan guarantee is being investigated by the House Energy and Commerce Committee.
Solyndra’s offices were raided by the FBI two days after the company filed for bankruptcy, although the FBI did not say what prompted the raid.
www DOT reuters.com/article/2011/09/20/us-solyndra-idUSTRE78J5RE20110920
HAINING, China (AFP)–Residents have called for authorities to move a solar panel factory in eastern China, locals and media said Tuesday as anger simmered after days of violent environmental protests.
Authorities shut down the plant–found to be emitting excessive levels of potentially toxic fluoride–Monday after hundreds protested in Zhejiang province’s Haining city, but locals are still concerned about their health.
“The plant should be knocked down. That’s the only way to solve the problem,” a young man living near the factory, who declined to be named, said.
Zhou Jiuguan, who grew up in the area, also called for the plant to be relocated. “But with the money involved, it’s impossible,” he said.
State media reported that the 500 protesters who stormed the factory–operated by the U.S.-listed company Jinko Solar Holding Co. (JKS)–last week were demanding an explanation for the deaths of large numbers of fish in a nearby river.
On Monday, Haining’s city government announced the temporary shut-down of the factory after tests showed it was emitting excessive levels of fluoride, which can be toxic in high doses.
The incident came just one month after authorities in the northeastern port city of Dalian agreed to relocate a chemical plant following similar protests, underscoring official concern over mounting public anger about pollution.
On Tuesday, the area around the plant in Haining appeared quiet, bar a single police road block leading up to the factory.
“Everything is toxic with regards to producing (solar) cells. It stinks whenever I pass by,” the Oriental Morning Post cited a resident surnamed Wang as saying, adding that many locals were hoping the plant would be moved.
A spokeswoman for Jinko Solar–quoting chief financial officer Zhang Longgen–said Tuesday that the firm “is not in the position to make the decision” on whether the factory should be relocated, without elaborating.
She insisted that facilities at the plant met environmental standards.
Jinko apologized Monday for what it said had been a leak. Waste containing fluoride had been stored outside the factory, it said, but polluted a nearby river after heavy rains in late August.
The Rubber Snake Ranch sold at a live auction for $3.7 million.
Is that next to the Trouser Trout Ranch?