Tri-Cities comes in second for housing market recovery

By Kristi Pihl, Herald staff writer

Tri-City home prices are expected to grow by 3.4 percent this year, ranking the area second in the nation for best recovery in the housing market.

The recent rating by the Housing Predictor, an independent real estate market forecaster, is more evidence of how well the Tri-City economy is doing, said Rene Dahlgren, Home Builders Association of Tri-Cities director of government affairs.

Housing Predictor said the only housing market expected to see more growth in home prices is El Paso, Texas, which is expected to see a 3.7 price increase.

It's hardly the first time the Tri-Cities has made lists of best housing markets, Dahlgren said.

In February, the Tri-Cities was named the fifth best housing market, according to Builder Magazine. In 2010, the Tri-Cities was fifth on the list of best performing large cities based on job and salary growth as rated by the Milken Institute, and ranked first out of 372 areas for employment growth in the last five years by Garner Economics.

And despite looming layoffs at Hanford, Dahlgren said they hope the market will remain strong and that the economic slump will be less than in the past.

"We've definitely come a long ways in diversifying our economy," she said.

Having a strong housing market is a good indicator of whether the economy is going well because that means people are willing and able to invest in real estate, Dahlgren said.

In 2011, 890 single-family homes received building permits as of July, according to the Home Builders Association of Tri-Cities. Pasco had the most new home permits, at 321, while Kennewick had 192 and Richland 175. West Richland issued permits for 80 new homes.

Read more: http://www.tri-cityherald.com/2011/09/10/1637924/tri-cities-comes-in-second-for.html#storylink=mirelated#ixzz1cz9A69qE

Tri-City housing market rated at No. 17 by magazine

By Kristi Pihl, Tri-City Herald

The Tri-Cities is expected to have one of the top 20 healthiest housing markets in the nation next year.

The Tri-Cities, at No. 17, was the only metropolitan area in the Northwest to make the list created by Builder Magazine and Hanley Wood Market Intelligence.

The healthiest of the 100 largest markets nationwide were determined using home prices, employment, population projections, unemployment rates and median household incomes, said Jonathan Smoke, executive director of research for the real estate research firm.

The Tri-Cities does well in all categories, and each is expected to improve in 2012, he said. For example, the area's home prices are expected to grow by about 3.8 percent next year.

The Tri-Cities might be one of the smaller markets to make the top 20 list, but the area's economy has been relatively strong during the national housing downturn and recession, Smoke said.

Already, construction permits in the Tri-Cities have been rebounding for more than a year.

The area also has an above-average number of high paying jobs, combined with relatively affordable housing, Smoke said.

And the Tri-City home ownership rate is higher than the national average, he said. It increased to 69.5 percent in July, while nationally the rate is 66 percent and has been declining each year.

The Tri-Cities is the most affordable metropolitan area in the state, said Paul Roy, president of the Tri-City Association of Realtors.

Housing affordability means it has made more sense for families moving to the Tri-Cities in the past decade to buy homes rather than to rent, he said.

An increasing home ownership rate combined with a growing number of households creates a demand for homes, Storm said.

Roy said August and September were disappointing in terms of home sales in the Tri-Cities. Consumer confidence is low, but he expects that confidence to improve.

Through September this year, 2,145 homes were sold in the Tri-Cities, according to a report by Coldwell Banker Tomlinson Associated Brokers of Kennewick.

An average of almost eight homes were sold each day so far in 2011, compared with about nine homes sold a day on average in 2009 and 2010, according to the report.

Roy said October sales should end up better than the same month last year.

There is about eight months of inventory for sale because of fewer sales and more listings, he said. But he expects that anomaly will correct itself after winter.

Inventory is based on the sales pace in the past, he said. And if things pick up to 2008, 2009 or 2010 levels, the housing inventory will be just right.

The Tri-Cities is estimated to have 1,244 new homes issued building permits this year and 1,099 in 2012, according to Builder Magazine's report.

Rene Dahlgren, director of government affairs for the Home Builders Association of Tri-Cities, said builders expect to see a similar number of permits for new single-family homes next year as this year.

As of September, 1,089 permits for new single-family homes were issued in the Tri-Cities, and about 1,300 total are expected by the end of the year, according to the association.

Dahlgren said that is sustainable and keeps builders relatively busy. But they would like to see some growth.

Unlike the rest of the state, the Tri-City home market has maintained its stability, she said.

-- Kristi Pihl: 582-1512; kpihl@tricityherald.com

Read more: http://www.tri-cityherald.com/2011/10/28/1696277/tri-city-housing-market-rated.html#storylink=mirelated#ixzz1cz7vRtUZ

Housing market does well, despite Hanford layoffs

By Kristi Pihl, Tri-City Herald

Thomas Masterson, owner of T.R. Masterson Construction of Washington, stands in front of his latest project, the Canyon Crest Apartments in Richland. He doesn’t expect the recent layoffs at Hanford to affect the demand for Tri-City apartments. See story below.

RICHLAND — Richland's Canyon Crest Apartments are starting to fill with residents, even though the 30-unit complex isn't expected to open until the end of November.

Thomas Masterson of T.R. Masterson Construction doesn't expect the recent Hanford layoffs to slow demand for his new apartments.

"We couldn't be happier," said Masterson.

The $1.96 billion in stimulus money from the American Recovery and Reinvestment Act, which pumped up jobs at the Hanford nuclear reservation in the past two and a half years, is mostly spent now.

But despite almost 2,000 layoffs so far at Hanford and up to another 1,060 possible by fall, many apartment owners and homebuilders remain optimistic about the Tri-City housing market.

"People have to live someplace," said Masterson, a builder for 35 years.

Hanford helped keep the Tri-City housing market healthy while the recession beat up housing markets in many other parts of the nation.

Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University, said he doesn't see the same thing happening here.

With the stimulus money spent, Crellin said he expects some softening, with fewer home sales and some declines in prices. But there isn't likely to be the plummeting prices other regions have seen.

The Tri-Cities is on a different cycle than the rest of the state, he said.

Rick White, Pasco's economic and community development director, agreed, saying he expects to see a minor dip in the housing market that will even out over time.

Interest rates are at record lows, possibly helping to counteract the impact of the Hanford cuts, he said.

Pasco isn't seeing much of a slowdown in home construction. The city ended September with 402 new permits for single-family homes -- just 41 fewer than at the same time last year.

Katie Wilson, assistant manager at The Crossings at Chapel Hill in Pasco, said they expect the Hanford layoffs will mean more of their 228 apartments will soon be available. But the demand for apartments remains high.

The Tri-Cities' apartment market has been operating at an almost unprecedented vacancy rate of 1 percent to 2 percent for a couple of years, said Crellin.

Last month in Kennewick and Pasco, 97 percent of apartments were occupied, while in Richland, there was 95 percent occupancy, according to the survey completed by Kennewick's Crown Property Management.

The layoffs could help the market return to a more sustainable 5 percent vacancy rate as workers who came specifically for stimulus-funded jobs move, Crellin said.

Most property managers consider a 5 percent vacancy rate ideal because it gives managers a chance to keep up on maintenance, he said.

Typically, new apartment construction eases rental shortages, but tight lending because of the national economy means that hasn't happened in the Tri-Cities, he said.

Even in the early '80s, when about 10,400 people lost their jobs, Masterson said his Kennewick company kept going for several years building custom homes. Although the volume was down, homes still were needed.

Similarly, just this month ground was broken on a new 5,000-home planned community called Badger Mountain South.

Paul Roy, president of the Tri-City Association of Realtors, said he is more worried about "perceptions" than the actual economy.

If consumer confidence is low, people are more hesitant to make financial commitments, he said. And because consumers are responsible for about 70 percent of the economy, he said it's a self-fulfilling prophecy if they stop spending.

Still, Roy said believes the Tri-Cities will end the year with a similar number of home sales to last year.

During the last major round of Hanford layoffs in 1995, when about 5,400 jobs were cut, people still were buying homes, he said. Sales took a temporary dip before picking up again.

And the Tri-City population is continuing to grow, Roy said.

Contributing to that growth are retirees moving here from other areas because of the affordable cost of living, mild weather and good services, he said.

"What we can't lose track of is that we are selling houses every day in the Tri-Cities," Roy said.

-- Kristi Pihl: 509-582-1512; kpihl@tricityherald.com

Read more: http://www.tri-cityherald.com/2011/10/18/1683490/housing-market-does-well-despite.html#ixzz1cz6Jnh2e

6 tips for a better outdoor deck

By Paul Bianchina
Inman News™

July 27, 2011

Few projects are as enjoyable as building a new outdoor deck. They're fun to design and build; they look great; and they enhance both the enjoyment of your home and its resale value. Decks are also a great do-it-yourself project, and there are lots of products on the market that can help you get the job done faster, safer and with better results.

Wander the aisles of your local home center or hardware store or do an online search, and you'll find more than enough inspiration to get you itching to grab a hammer!

Deck design:
Let's start at the beginning -- with a great design. If you have something in your head in the way of a perfect deck but you're not sure how to turn it into reality, start with a simple computerized drawing program. You can pick them up inexpensively at a number of retailers, and they're pretty intuitive to learn. Most not only help you design the deck in 2-D, but also do 3-D modeling, structural details, and even material lists.

If you'd prefer to have someone else tap the mouse, check with your local lumberyard. Many of them offer computerized deck design services that can save you hours of planning. The design consultant will walk you through several basic designs, and help you customize them to your exact size and layout requirements.

Structural hardware:
When it comes time to do the actual framing, companies like Simpson Strong-Tie offer an incredible selection of steel framing hardware that greatly simplifies all those connections. For example, there are simple joist hangers that support and connect the joists where they attach to the ledger or rim joist, and inside angle connectors to strengthen a variety of framing joints.

Where a beam sits on top of a post, there are post cap connectors, as well as post base anchors to connect the post to the patio or pier block. There are even specialty connectors specifically designed for attaching deck railing posts to deck framing quickly and with much greater strength than simply nailing or bolting alone. Simpson's decking site is worth a visit:www.strongtie.com/deckcenter.

Duo-Fast DF150S-TC TICO Nailer:
All that helpful structural hardware also means driving a whole lot of nails to make the connections work properly. So if you've got a big deck project in the works, or you're a pro who does a lot of decks, you might want to consider a pneumatic nailer to help you out.

Duo-Fast's TICO Nailer is designed specifically to drive the 1 1/2-inch, .148-shank nails required by most building codes for use with structural hangers. It's compact to get into tight spots, has a convenient rafter hook, and has an adjustable exhaust to keep the air out of your face.

Best of all is the unique "probing tip," which accurately locates the hole in the hanger before you shoot the nail. Check it out at www.duo-fastconstruction.com.

Bench brackets:
Want to add a bench to your deck? Bench brackets make it easy. Made of steel or a durable resin, they bolt to both the decking and the deck framing for stability, then you add your own decking material to the top and back to form a seat and backrest.

The brackets are angled to form a comfortable backrest while eliminating all those difficult angle calculations. You can see a couple of different styles at www.rockler.com.

Precut stair stringers:
If your deck design calls for steps, don't despair over how to cut the stringers. Many lumberyards and home centers carry or can order precut stringers in different lengths. They're made of pressure-treated lumber so they're safe for ground contact, and all the hard layout and cutting has been done for you.

Just select the number of steps you need based on how high the deck is, secure them to the deck and to the ground using the appropriate hardware connectors, and you're all set. Finish off the installation with treads that match your decking boards.

Railings:
A deck railing adds a lot of visual interest to a deck, and it's also a code requirement if the deck will be more than 30 inches above the ground. Thanks to the tremendous interest in decks and the number of do-it-yourself deck builders, there are lots of different railing ideas that you can choose from, as well as the parts to build them with.

You can go with simple wooden pickets, which your local lumberyard will have in stock. Or you can step it up a bit with metal pickets, which are available in different colors and styles at places like www.stair-parts.com or www.deckdepot.com, or from many local welding shops. For a more open look, consider steel cables instead -- you can check out some examples at www.cablerail.com.

Remember that your new deck and railing will almost certainly require a building permit, and that certain construction standards must be adhered to for safety. Check with your local building department before you get going on any deck design or construction project.

Remodeling and repair questions? Email Paul at paulbianchina@inman.com. All product reviews are based on the author's actual testing of free review samples provided by the manufacturers.

Copyright 2011 Paul Bianchina

An economical kitchen, bath remodel

By Bill and Kevin Burnett
Inman News™

July 27, 2011

Editor's note: This is the second of two parts.


Last week we answered a question from an empty-nest couple who had just paid off the mortgage on their 1980s-era rancher in Pleasanton, Calif. Rather than sell and downsize, they decided to stay put. Trouble was, they were getting tired of their home's tired look. How, they wanted to know, should they go about updating?

We tackled walls, floors, doors and trim, suggesting new paint, some hardwood flooring, new molding and baseboard, and new interior doors. Today we'll discuss the "wet" rooms -- kitchen and baths.

Kitchens
Any way you crunch the numbers, a kitchen update is going to be expensive. But, assuming you don't have to open too many walls, reroute plumbing or add electrical circuits, it won't break the bank. If you have a workable footprint, cabinets, countertops and appliances are all you need to transform a 1980s kitchen into a 2011 model.
Whether custom-made or modular, new high-quality cabinets will cost thousands of dollars -- sometimes tens of thousands. For that you get silky-smooth sliding drawers, Lazy Susans and other fancy accoutrements that will never be seen from the outside.

If you can continue to live with the existing interiors, you can save fully 75 percent of the cost of new cabinets by refacing the fronts and adding new, custom-made doors and drawer fronts. You'll save even more if you use a paint finish, rather than stain and polyurethane, because you won't have to replace the cabinet faces.

Choose some nice, modern knobs and pulls, or go with a minimalist look and have your door and drawer maker include a routed finger pull.

Chances are your 1980s countertops are either a laminate such as Formica or Wilsonart, or tile and grout. You're going to want to ditch this for something more modern. While granite is still the darling, you have a bunch of other good choices, including marble, soapstone, crushed quartz or concrete. We've even seen countertops jacketed in pewter.

For a good primer on countertop choices, including pros and cons, check out http://interiordec.about.com/od/kitchencounters/tp/tp_countertops.htm.

Bottom line: It's up to you and your budget, but figure on spending at the minimum $150 per linear foot.

Appliances are also a personal choice between you and your budget. Figure on spending at least $6,000 -- and easily double or triple that -- for a classy refrigerator, oven, range and dishwasher. Bill loves his Electrolux induction range and Fisher & Paykel drawer dishwasher. Kevin wouldn't trade the Garland commercial range and oven he's been using for years.

Finish with a good sink and faucet. For the sink, deeper is better, and we like 16-gauge stainless steel. For your faucet, do your shopping on the Web and then buy at a plumbing supply house. Or do what Bill did -- buy $7,000 worth of appliances at a discount store and get them to throw in a $600 faucet for free.

Finally, consider adding some under-counter lighting. Kitchen designers call it "task" lighting, but if your kitchen is open to other rooms, add a dimmer switch and make it mood lighting as well.

Bathrooms
The standard 1980s bathroom has a tile shower or tub surround, vinyl floors, wood vanity, and an onyx or faux marble countertop.

Because tearing out tile and replacing it is a big, expensive job, we recommend that you keep the tile and spruce it up with a new grout job.

If your vanity has seen better days, we recommend that you replace it. There's a whole aisle of styles at the big-box home improvement stores. Find one that you like but forgo the faux stone countertops with the recessed sink.
Find a good stone dealer and have the real thing made to order. Bill went that route, choosing Jerusalem Gold limestone. The fabrication and installation set him back about $800, but every time he looks at it he thinks it's money well spent. For a more rustic look, consider a soapstone counter with matching sink.

Your flooring choices include tile, wood and vinyl. We would steer clear of tile, as it can be cold and hard underfoot. And, although we love wood everywhere else, we think it just doesn't look that good in the bathroom. Also, you're one leaky toilet away from costly repairs.

That leaves vinyl. We strongly recommend single sheets (no seams) of top-quality linoleum. We're especially partial to a product called Marmoleum.

Finish off your bathroom rejuvenation with a new shower door, faucet, towel racks, mirrors and light fixtures.

Copyright 2011 Bill and Kevin Burnett

Growth in Tri-Cities Not Without Challenges

By John Collett                           Story Published: Jul 1, 2011 at 6:11 PM PDT


TRI-CITIES -- The Tri-Cities community has grown significantly in the past decade and experts say that will continue strong for another ten years. In fact, a new report KEPR first told you about last week has our community getting bigger by about 35 percent in less than ten years.

Thought of more growth are astounding to Tri-Cities local Barb Maheu, who has already seen major changes in her day.

“They have all that new housing in west Pasco and really it expanded, Kennewick is more crowded cause they didn't have that mall at all,” said Maheu. “I mean when I was born here like 60 years ago, they didn't have any of that.”

The 35 percent prediction is going to need some help according to TRIDEC President Carl Adrian.

“This dream will only come true if there are jobs in the community and there's a reason for people to come in,” said Adrian.

Even if the jobs come, the idea of all that growth may be a double-edged sword, that could affect the quality of life that people here enjoy. One of the major areas of concern is how the schools would handle growth since they’re already filled to the max.

“It's harder for them to finance new buildings and that sort of thing,” added Adrian. “So that kind of growth would be a concern.”

Real estate agent Paul Roy is well aware of the growth and what can happen when it’s not handled correctly.

“Not all growth is good growth, and most people you talk to are pro smart growth,” said Roy. “What we look at that is having the infrastructure in place, having the services to service that growth and not just grow for the sake of growing.”

A bonus would likely come to homes though as they expect an increase in housing prices for homeowners, and bring an overall boom to the market.

“Right now there's some issues there,” said Roy. “Especially in what we call affordable housing under 200 it's very tight, very slow.”

TRIDEC explained they don't expect growth to be an issue on healthcare since Kadlec and KGH both plan to expand. Traffic may be an issue, but it's all relative.

For Maheu though, some things will never change.

“It still feels like it’s kind of an ideal town,” said Maheu.

TRIDEC also tells Action News the 35 percent estimate seems a bit high, and guesses it will be more like 20 percent. That would still mean an additional 50,000 people in our community over the next ten years.

Stay Warm from the Ground Up: The Basics of Basement Insulation

By Charles Furlough

RISMEDIA, February 23, 2011—If heat is escaping your home, this is the time of year when you’ll feel it—in most areas of the country anyway—not just physically, but in your wallet. Too many people spend way more than they should on heating a home due to heat escape. Your first instinct, if you’re spinning your wheels trying to heat your home, is that the culprits are things you see every day, from picture windows in the living room to your bathroom skylight. And those very well might be part of the problem. But you may not know that a huge potential source of heat loss is the basement. In fact, basements can account for over one-third of a home’s heat loss.

A major reason for this is incorrect insulation in basements. There are many types of insulation and the best choice for your basement is based on the area where you live and the age of your home: fiberglass, mineral wool blanketing, loose fill (cellulose, fiberglass or vermiculite) and spray foam. One of the most effective types, however, is rigid board insulation (typically either fiberglass boards or foam polystyrene boards). This type is typically the most expensive and tough to fit into irregular spaces, but many find the initial cost and effort well worth it in energy savings.

Even if the basement walls are well insulated, there’s another consideration: the foundation. Older foundations (like rubble, stone and brick) often suffer from moisture problems and should generally be insulated from the outside. Concrete foundations can be insulated from either the inside or outside if they’re structurally sound. Preserved-wood foundations generally must be fully insulated.

Crawl spaces should generally be insulated, as well, but must follow proper ventilation codes and guidelines (1 to 500, vent area to floor area) and the floor must be covered with a polyethylene moisture barrier.

You might be reading this feeling slightly helpless, thinking: How do I know if I’ve got a 1 to 500 ratio and how do I know what kind of insulation, if any, my foundation has? If you’ve recently moved and got a thorough, well-documented home inspection at closing—or if you’re in a new home and can contact the builder—you might already have records of this information. But in the absence of such records—or if you’re in an older home and feel that time and age has lowered your quality of insulation—call in a certified home inspector. Insulation quality isn’t something that you can check yourself, if you’re untrained; especially in older homes, to do so can be dangerous. A certified, professional home inspector can check your insulation and let you know where it’s lacking and how it can be improved or made more energy-efficient.

In addition to efficiency in energy use, safety is a concern too: When upgrading existing insulation to improve efficiency, it’s essential to follow local codes and laws. That’s where a local, certified professional home inspector can help as he or she will know what your area’s laws are. For instance, in many areas it’s necessary to place a fire-resistant gypsum board layer over existing insulation to reduce the emission of harmful gases in the event of a fire. In many cases, a home inspection reveals safety lapses, like the lack of such a safety measure. The result: suggested fixes that make your home not only warmer, but safer too.

Charles Furlough is vice president of Pillar To Post Professional Home Inspections.

For more information, visit www.pillartopost.com.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.