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Missoula Independent
Homesteader 2010
Mailing address: P.O. Box 8275 Missoula, MT 59807 Street address: 317 S. Orange St. Missoula, MT 59801
Photo by Cathrine L. Walters
Phone number: 406-543-6609
Table of Contents
Fax number: 406-543-4367 E-mail address: independent@missoulanews.com
A floor-to-ceiling blueprint for a more energy efficient home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Charles Finn makes a case for living little over building big . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Jennifer Savage looks to grow roots—and a garden—in the city . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Experts reveal their top low-cost, high-reward home projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Cover photo by Cathrine L. Walters
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Photo by Cathrine L. Walters
Mark Noon shows off part of the I-Pad’s “four-sided, insulated down coat.”
Greening the suburbs A floor-to-ceiling blueprint for making your home more energy efficient by Kyle Lehman • photos by Cathrine L. Walters At first glance, Missoula’s 44 Ranch development looks like any American suburb, with children’s bicycles in the lawns and SUVs parked in the driveways. But according to the builders of the small green home on Horn Lane, their project could be a model for future residential construction across the country. Known as the “I-Pad” (developer Glen Moyer jokes that he plans on having a talk with Steve Jobs), this home features special green-building technologies that can be applied to new construction projects or retrofitted into existing homes to cut energy bills and increase comfort. 4
Missoula Independent
“Americans are realizing they don’t need big, bloated cars and they don’t need big, bloated houses.” —Glen Moyer, developer During the construction and design process, Mark Noon of Missoula’s Kingdom Ventures says the team tried to stay away from what he calls the “emotional” side of green building: Things that may give the builder a rosy feeling but Homesteader 2010
will need to be replaced a few years down the road. “Most of the interior finishes are standard finishes,” he says. “We just looked at energy efficiency and durability—those are the nuts and bolts of green building.”
Products such as wood vinyl flooring, dry wall and a concrete porch are common construction products that Noon says allowed the team to spend more on special energy-saving technologies. He also says that once all of the construction was done, the home cost was around 3 to 5 percent higher than a comparable home, but exceeds energy regulations by about 60 percent. What’s that mean? Moyer estimates that the 1,288-square foot, three-bedroom house will average $25 monthly heating bills and likens the home’s small size and efficiency to a hybrid car. Continued on page 6
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home from the ground up, the cost of an additional wall can be prohibitive.
“Americans are realizing they don’t need big, bloated cars and they don’t need big, bloated houses,” he says. By breaking the I-Pad down into several distinct systems, from the walls and insulation to the light bulbs and appliances, builders and homeowners can glean ideas for a variety of projects both large and small.
Under the floor
Walls
Photo by Cathrine L. Walters
Rather than the traditional The I-Pad’s Heat Recovery Ventilator maintains a consistent 2x6 walls used in most new climate and moisture content inside the house. construction, the I-Pad has two 2x4 walls separated by a space to creating cold air pockets like tradi- Noon adds that when third party retain heat. Noon calls this the tional fiberglass insulation. inspectors checked out the home, “building envelope” and says it’s “We have this four-sided, insu- it more than doubled the R rating one of the most important features lated down coat of a house,” Noon mandated for energy efficiency. of the home. Celluloid insulation says, adding that both the attic and Noon says homeowners can is sprayed in between the two crawl space are sealed off to pre- install Celluloid insulation in an walls, bonding to studs and wires vent heat from the living area existing wall for a better R rating, rather than bending around it and being wasted on storage space. but unless they are planning a
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Missoula Independent
Homesteader 2010
Hidden beneath a sealed access panel in the I-Pad’s floor are several features that protect the home’s longevity. The details start with plastic sheeting on the floor to keep naturally occurring argon gas from leaching into the structure and prevent moisture from damaging exposed framing products. Noon says that labor-intensive foam sealing around the rim of the foundation helps prevent cold air passage into the home. “If you roll into a crawl space on a standard built house you won’t see these details,” Noon says, adding that both the plastic Continued on page 8
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Photo by Cathrine L. Walters
Developer Glen Moyer likens the home’s modest size and efficiency to a hybrid car.
sheeting and foam insulation could be added to an older home but would require more effort than adding them during the construction process.
Air flow Because the walls of the I-Pad are so airtight and heavily insulated, Noon says there is a risk it could become like a plastic bag, trapping steam from the shower or smoke from the kitchen inside the home. To fight this, the builders installed a Heat Recovery Ventilator (HRV ), a $900 dollar system—around $3,000 installed— that maintains a consistent climate and moisture content inside the home. “It’s extracting the stale, warm and moist air from the house and bringing in fresh air,” he says.
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Missoula Independent
This fresh air is heated and then re-circulated into the bedrooms and living areas, keeping the interior temperature of the home consistent. Noon says that homeowners thinking about retrofitting a home with additional insulation and sealing would be well served to consider such a system.
Windows/appliances To heat the home, the builders installed an electric fireplace with backup radiant heaters, which are more efficient and eliminate the risk of gas leaks into the home. To further energy savings the team went with Energy Star appliances and screwed in fluorescent light bulbs throughout the home. Noon says they tried to reduce the number of windows because even
Homesteader 2010
though they are energy efficiency rated, they cannot compete with a wall for heat retention. Adding double-paned, energy efficient windows and sealing around cracks and gaps are two ways that a homeowner can reduce their energy bill. Despite the relative ease of these retrofits, Noon warns against going overboard without installing an HRV to reduce condensation and stagnant air. “If you do too much to a house without taking into account what you’ve done, you can get into problems,” he says. Overall, Noon urges homeowners to think about their house as a whole, and consider how each new addition could change the overall functionality of the home. The builders took a similar
approach to this home, spending more on thick walls and insulation, but saving money by not having to install a furnace for heating. Moyer says that every inch of the house was planned out to maximize space and create a comfortable living area—and part of that extends beyond the house itself. For instance, instead of using traditional Kentucky Bluegrass for the lawn, Moyer says that they planted a Rye grass mix that uses 60 to 70 percent less water. It’s this sort of attention that Moyer hopes other builders take toward their products. “[It] has been a passion of ours for years to see the building environment change,” Moyer says. “This is the future of construction, and it should have happened a long time ago.”
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Not enough love Why living little makes more sense than building big by Charles Finn There’s a story, apocryphal no doubt, that I heard years ago and, in light of the recent boom in socalled “green building” and watching one’s “environmental footprint,” it’s worth repeating. I think of it time and time again, even as the housing industry struggles to regain its footing. It’s a story that, at least in my mind, grows ever more poignant and meaning10
Missoula Independent
ful, like a myth or fairytale, as time goes on. The way I heard it, the story takes place in the mid-1800s as an American Indian is being given a tour of a large modern home. The white homeowner is obviously proud, espousing on the house’s many virtues, not the least of which is its grandiose size. Coming to the end of his tour and waving Homesteader 2010
his hand magisterially, the owner asks his visitor if he wouldn’t “like something like this.” His guest pauses, studying the ground, then lifts his face and looks the homeowner straight in the eye. “I wouldn’t have enough love to fill it up,” he says. I’ve long been a proponent of “living little,” the idea that having less, paradoxically, can often mean
having more—more money, more time, more peace of mind and heart. What I see most often in new-home construction is that the idea of size (not to mention the wholly intangible idea of the love needed to fill it up) is woefully missing in today’s conversation about sustainable housing and green building. Green building, Continued on page 12
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as defined by the Environmental Protection Agency (EPA), is “the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s life-cycle from siting to design, construction, operation, maintenance, renovation and deconstruction.” This is all well and good, commendable, but the question arises: How green, no matter what resource-efficient materials and methods went into its construction, is a home or building if it is more than what’s needed? The National Association of Home Builders recently reported that the average size of a new single-family home built in 1950 was 923 square feet. By the year 2000 this number jumped to 2,265. Apparently in just 50 years American’s ability to love has more than doubled. 12
Missoula Independent
Honey, I shrunk the house It only goes to reason that the single most “green” thing a person
household spent at least $2,000 on energy, according to EPA estimates, and over half of that went into heating and cooling. Shrink
“The National Association of Home Builders recently reported that the average size of a new single-family home built in 1950 was 923 square feet. By the year 2000 this number jumped up to 2,265.” can do when building a new home is to build it small. All construction techniques and new materials aside, building a smaller house will be more energy efficient and cost less to heat, maintain and take care of over time. Last year the average Homesteader 2010
the house, and that number will shrink too. The problem is, with the exception of hand-held electronics, we don’t shrink anything. Americans’ love affair with the big pushes its way into nearly all
aspects of our culture—from fast food to cars to the size of our televisions. Our homes are the most obvious (and ostentatious) examples of this. Even as the average size of our households has grown, the number of people living in them has dropped from 3.4 people per household in 1950 to 2.6 people today. Ironically, for fewer people, we’ve added bathrooms and bedrooms, doubled the size of our kitchens, tacked on laundry rooms, and created media rooms. And although much of this is convenient, even practical, there’s something indefinable that if not paid attention to is often sacrificed. You feel it—experience it— when you enter someone’s snug, cozy, lived-in home. By way of example, (an extreme example to be sure) for four years I lived in a “home” 12 Continued on page 14
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feet long by eight feet wide. It came with hardships, but I worked around them. I held dinner parties there for up to six people. We sat on the bed with our plates on our knees and made due. I’m told they were some of the best gatherings my friends had ever been to—and I believed them. The small space fostered intimacy and closeness, things not often found these days. This isn’t to say you need a small house to have an intimate dinner party. But you don’t need a large one either. Quite recently I had nearly the exact opposite experience, one very similar to the American Indian story. I was invited to a new acquaintance’s house and given a tour. It came complete with a litany of “green” elements and materials—solar panels, energy efficient doors and 14
Missoula Independent
windows, reclaimed lumber accents. Quite nice, really. I nod-
“Oh, you mean sunshine,” I said.
“What I see most often in new home construction is that the idea of size (not to mention the wholly intangible idea of the love needed to fill it up) is woefully missing in today’s conversation about sustainable housing and green building.” ded politely to each point of interest, including the square of yellow “passive solar” splashed in the floor. Homesteader 2010
When I excused myself to use the bathroom I was given a set of verbal instructions on how to get there, and I wondered if I’d be
able to MapQuest my way back if needed. It was eerie, too, how our footsteps got lost in the sub-ether of the ceiling, and how our voices went astray, sounding hollow and tinny in the vacuous spaces. “It’s just me and my wife,” my friend said at one point as if responding to what must have been my raised eyebrows. Then he picked up his cell phone to call her. He thought she was home and it was easier to call than trying to track her down through the puzzle of rooms. I stirred my drink with a finger and pretended to study the bookshelf. It was a lovely house, I had to admit, and I told his spouse that when she arrived a few minutes later. “But a lousy home,” is the thought I kept to myself. Then for the rest of the evening we rattled around inside it like dice in a shoebox. I couldn’t feel the love.
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Photo by Cathrine L. Walters
Country comes home A farmer looks to grow roots— and a garden—on Missoula’s Northside by Jennifer Savage
As the grass starts to turn the slightest hint of spring green and the ground softens a little more each day under the weight of my boots, I fight the urge to dig. Something primal in me wants to drop my bags to the ground on my way out the door, get down to my knees and, with bare hand, start turning up dirt. I want to smell it, to see it in the rough grooves of my fingers and in streaks down the sides of my pants. And if I still lived in the country I just might start my day in exactly this way. But, I don’t. Last summer, for a host of reasons we try to remind ourselves of 16
Missoula Independent
Photo courtesy Seth Quackenbush
every day, my family left the country and moved to town. We lived in Arlee, 25 miles north of Missoula, for eight years, during which time we grew an expansive garden, created mounds of compost and had a burn pile the size of a small pond. But we traded those five acres of tall grasses and falling down fences for Missoula’s Northside, a neighborhood with a park and children for our daughters to play with. Now, we live on a city block with sidewalks to scrape and a slim slice of green we call a backyard. The gardener in me is trying to recalibrate. Continued on page 21
Homesteader 2010
Two Days 150 Vendors Everything for your home and garden under one roof
30th annual
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Main Floor
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A ABC Seamless • Booth 263 (406) 721-8649 abcseamless.com Accent Green • Outside (406) 728-1188 ACE Hardware • Booth 234 (406) 728-3030 montanaace.com Alpine Granite Accents • Booth 229-230 (406) 375-8406 alpinegranite.com Alltel • Velocity Wireless • Booth 255 (406) 454-2355 buyvelocity.com Anderson HVAC & Plumbing • Booth 201 (406) 728-8048 andersonshcc.com Anderson’s Masonry • Booth 311 (406) 728-6790 andersonsmasonry.com Arbonne International • Booth 127 (406) 825-0222 arbonne.com Axmen • Booth 225-227 (406) 728-7020 axmen.com
Black Mtn Marble/Clarkfork Rental • Booth 249 (406) 728-3596 blackmountainmarble.com
CDA Structures • Booth 290 (208) 772-5588 cdastructures.com
Designer Closets • Booth 114 (406) 777-1093 designerclosetsinc.com
Blackjack Log Homes • Booth 266-267 (406) 827-5647 mtblackjack.com
Ceiling Solutions • Booth 278 (406) 370-8022
Diversified Materials & Construction • Booth 244 (406) 253-7429 riverrocks.com
The Blind Guy • Booth 233 (406) 543-9990 blindguy.com Block Mtn Slate & Stone, Inc • Booth 258-259 (406) 826-4025 blockmountainstone.com Boulder Designs by Sibra Farms • Booth 272 (406) 378-2490 Buckskin Creations • Booth 412 (406) 871-1568 buckskincreations.com Budget Blinds • Booth 216 (406) 542-8282 budgetblinds.com/missoula Bullfrog Spas • Booth 279-282, 300 (406) 251-1340 bullfrogspas.com
C Caldarone Concrete • Booth 416 (406) 370-7504
B
Capital Family Mortgage • Booth 211 (406) 549-1940 capitalfamily.com
Best Buy • Booth 252 (406) 829-0409 bestbuy.com
Carpet Direct • Booth 236-237 (406) 240-2958 carpetdirectcorp.com
Big Sky Windows • Booth 313 (406) 251-6559
Casa Bella Montana • Booth 204 (406) 274-0772 casabellamontana.com
Bitterroot Turf Farm • Booth 286 (406) 961-1184 turfmontana.com
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Clean Green • Outside (406) 396-0438 Cleary Building Corp. • Booth 205 (406) 961-5333 clearybuilding.com College Pro Painters • Booth 108 (800) 327-2468 collegepro.com Conklin Coating Systems • Booth 126 (406) 531-6620 conklin.com Construction Building Services • Booth 304 (406) 546-8468 Cornerstone Tile & Marble • Booth 243 (406) 726-3278 setinstonemt.com Culligan Water Conditioning • Booth 214 (406) 721-1991 mtculligan.com Cummins Northwest • Booth 220-222 (406) 728-1300 northwest.cummins.com
D D & N Siding • Booth 231-232 (406) 360-0118 Dara Home Design • Booth 116 (406) 370-5557 darashomedesign.com Dayspring Restoration • Booth 297-298 (406) 543-6070 dayspringrestoration.com
DoTERRA • Booth 413 (406) 549-0259 doterra.com DS Johnson Enterprises • Booth 418 (503) 857-7735
E Earth & Wood • Booth 305 (406) 642-3415 earthandwood.com EKO Compost • Booth 417 (406) 721-1423 ekocompost.com Erhart Construction • Booth 273 (406) 375-5487 Eric Reese Photography • Booth 408 (406) 212-0382 ethomasreese.com
F Fence Crafters • Booth 106 (406) 251-2406 fencecrafters.net Fill the Gap, Inc • Booth 250 (406) 542-0500 • fillthegapmt.com Flint Creek Custom Doors • Booth 123 (406) 544-2473 Florian Tools • Booth 235 (860) 628-9643 • floriantools.com Function First Home Planning • Booth 132 (406) 546-7287
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Garden City Plumbing & Heating Booth 104-105 (406) 728-5550 gardencityplumbing.com Geppetto’s Cabinets • Booth 125 (406) 825-3700 geppettoscabinets.com Gorgeous Garages/Monkey Bars Booth 119-120 gorgeousgarage.com Griffin Hollow • Outside (406) 288-7654 Grizzly Cabinets & Counters • Booth 202 (406) 626-0840 grizzlycabinets.com Grizzly Seal • Booth 410 (406) 207-6895 Grout Rite • Booth 411 (406) 273-9938 groutrite.com
H Hearing Aid Institute • Booth 117 (406) 543-5025 hearingaidinstitute.com Heirloom Woodworking • Booth 271 (406) 240-2782 Hollywood Sheds • Outside (406) 273-0891 hollywoodsheds.com Home Depot • Booth 262 (406) 523-0901 homedepot.com
I Ibey Nursery & Garden Center • Booth 316-318 (406) 721-5054 ibeynursery.com Invisible Fence of Western Montana • Booth 224 (406) 552-4436 westernmontana.invisiblefence.com
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Lander’s Lawn Service • Booth 131 (406) 239-6358
Nature’s Best • Booth 251 (406) 544-4754 naturesbestinc.com
Larry’s Tractor • Booth 299 (406) 381-3597 larrystractorstrailersandmore.com Lincoln Water Jet/ Mountainman Forge • Booth 208 (406) 362-3262 Live Well, International/Nikken • Booth 128 (406) 550-4355 Loren’s Carpet One • Booth 110-111 (406) 251-2700 lorenscarpetonemissoula.com Loyall Pet Food • Booth 419 (406) 240-7343 loyallpetfood.com
M MacArthur Co. • Booth 109 (406) 327-9250 macarthurco.com
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Sustainable Building Systems • Booth 246 (406) 541-8410 sustainablebuildingsystems.com
Perry Wood Floors • Booth 118 (406) 642-6248 Premier Awning & Solar Screen • Booth 107 (406) 541-7736
Professional Pasture Services • Booth 212 406-370-8178 pastureservices.com
Meadow Lake Resort • Booth 257 (406) 892-8700 meadowlake.com
PS Designs • Booth 275-276 (406) 240-3927 pamschultze.com
Michebag • Booth 203 (406) 431-9624 michebag.com
Q
Mission Timbers • Booth 115 (406) 745-0083
K
Montana Deck Company • Booth 228 (406) 544-6264 montanadeckandremodel.com Montana Silhouettes/Sunrider • Booth 136 (406) 327-8593
Kinetico Water • Booth 238 (406) 363-1782 bitterroot.kinetico.com
Morgenroth Music • Booth 113 (406) 549-0013 montanamusic.com
Kirby Vacuums • Main Entrance (406) 543-8201 kirby.com
Mountain West Cooperative • Booth 213 (406) 543-8383 cenexmt.com
Kitchen Craft • Booth 247-248 (352) 483-7600 kitchencraft.com
MT Bird & Garden Products • Outside (406) 745-5115
Krieg Chiropractics • Booth 241 (406) 541-8888 kriegchiropractic.com
Sunelco • Booth 260 (406) 642-6422 sunelco.com
McGowan Water • Booth 264 (406) 728-3590 mcgh2o.com
Miracle Method • Booth 215 (406) 543-4383 miraclemethod.com
MT Department of Labor • Booth 269-270 (406) 444-2840 dli.mt.gov MT Ecosafe Foam Insulation • Booth 261 (406) 626-0702 MT Initiative to Limit Property Tax • Booth 133 (406) 690-3572
Steel Structures America • Booth 268 (208) 777-7290
Norwex • Booth 409 (406) 240-0877 norwex.com
Private Quarters • Booth 253 (406) 861-1123 myprivatequarters.com
Miller Barns • Outside (406) 745-3207
State Farm Insurance • Booth 415 (406) 868-9993 statefarm.com
Summit Roofing • Booth 217 (406) 829-9100 summitroofing.info
Matz Chiropractic Center • Booth 207 (406) 549-2006 matzfamilychiropractic.com
Mill Canyon Log Homes • Booth 287 (406) 745-2414
Stafford Home Fitness • Booth 277 (406) 549-2832 staffordfitness.net
NorthWestern Energy • Booth 314-315 (888) 467-2669 northwesternenergy.com
Premium Coatings • Booth 288-289 (208) 267-3276
JG Construction • Booth 256 (406) 396-9631
Kitchen Solvers • Booth 209 (406) 251-6300 kitchensolvers.com
New Era Plumbing & Heating • Booth 130 (406) 543-6465 newerapandh.com
Mark’s Resurface-All • Booth 124 (406) 363-0972
Missoulian • Booth 129 (406) 523-5200 missoulian.com
K Design • Booth 283 (406) 273-6193 kdesignmarketing.com
Nature’s Enhancement • Booth 284 (406) 777-3560 naturesenhancementinc.com
Showcase Pet Grooming & Supply • Booth 310 (406) 543-1211 showcasepet.com
Quality Seamless Gutters • Booth 312 (406) 728-4002 qualityseamlessguttersofmt.com
Sweet Pea Sewer & Septic • Booth 245 (406) 728-3533 sweetpea-site.com
T T&C Fence • Booth 206 (406) 793-5690 Tabish Siding, Inc • Booth 285 (406) 543-5840 tabishseamlesssiding.com Temp-Right • Booth 218-219 (406) 728-1111 tempright.com Time Rental • Booth 102-103; Outside (406) 543-7136 timerentalmt.com Timeless Quilts/Bernina • Booth 134 (406) 542-6566 tqandf.com
Quarry Works, Inc • Booth 242 (406) 763-3028
TruGreen • Booth 210 (406) 829-8784 trugreen.com
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Turner Paint • Booth 135 (406) 549-7802 turnerspaintstore.com
Rockin’ B Storage • Outside (406) 240-8979 rockinbstorage.com
V Vern’s Landscaping • Booth 112 (406) 360-0170
S Scentsy • Booth 407 (406) 550-2440 scentsy.net Shrock Construction • Booth 223 (406) 961-6808 schrockconstructioninc.com Scott’s Lawn Service • Booth 414 (406) 251-5351 scottslawnservice.com Select Comfort • Booth 265 (406) 549-8834 selectcomfort.com Serendipity (406) 240-9371 ServPro • Booth 301 (406) 327-9500 servproofmissoula.com Shadow Asphalt • Booth 239 (406) 239-7325 shadowasphalt.com
Homesteader 2010
W W Chiropractic Inc. • Booth 420 (406) 549-9100 wchiropractic.com Wagner Nursery & Landscape • Booth 274 (406) 287-7989 wagnernursery.net Western Montana New Holland Tractor • Booth 101 (406) 728-1996 bluetractorcrew.com Winnwood Floors • Booth 254 (406) 207-5331 winnwoodflooring.com Wireless Connection • Booth 240 (406) 728-2206 gowirelessconnection.com Wolverine Ranch Mulch • Booth 291
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I should probably say that I in the garden in winter. I let our heart that I look out at the flat, sodhave always been a bit of a guerilla chickens scrape and scratch in covered backyard of our house in gardener. I’m a touch distractible spring, turning the soil into a rich Missoula. I wonder here, on the and, even though I don’t like to blackness that stained the soles of brink of spring, if I will ever turn it admit it, downright stubborn. into something resembling our I’ve never taken a class, studied garden in Arlee—not in sheer the composition of dirt or size or scale, but in feeling. How measured how much I water. will I transform this icy rectanI’ve always grown by instinct, gle of yard into something doing what felt right. This whimsical and productive? How approach doesn’t always mean I will I make something so unihave the most fruitful garden, form look creative and passionbut that’s never mattered much. ate? How will I make it look like Gardening has always been for us? me less about the harvest and more about the digging, the Letting loose tending. In our eight months of “city When I lived in the South I, living” I’ve felt tamed, and in so like my neighbors, grew tomamany ways. I suppose this is toes the size of a baby’s head. what happens when country Photo courtesy Seth Quackenbush When I lived in Oregon’s comes to town. Our children Willamette Valley, I grew, well, have had to put on clothes anything—and without really when they go outside. Our dogs trying. I moved to Montana eight my feet by summer. years ago on a snowy November Over the years there, I learned now have leashes and rules about day. That spring I started peas in where to plant the carrots, how to where they can and cannot go. small trays on the porch of our rotate what I planted each year, We’ve had to lower our voices, rented duplex. By June, we had and that my husband actually hates watch where we park our cars and get used to a much tighter radius bought the house in in which we live. The Arlee and I dug a small physical shift is close to patch of garden out of complete, but the mena field of knapweed. I “I wonder here, on tal one is taking a lot tried to grow herbs, longer. tomatoes and chard. the brink of spring, if When I think of None of the plants gardening this summer, fared very well in the I will ever turn it into I have an urge to let scorching sun, but I loose and untidy our didn’t care. I was on city backyard. I’m thinksomething resembling our little farm, living ing of making raised our dream, dirty and beds there, but I want sunburned. A bumper our garden in Arlee— them to overflow with crop of potatoes wasn’t peas and flowers and really the point. not in sheer size or squash that migrate After living in across the yard. I want Arlee for a few years, our city compost to be a scale, but in feeling.” we clued in and moved little unruly and probthe garden to the other lematic. I want our side of our house, closchickens to scratch er to the water source, and to a chard. So I planted kale instead. By spot that got at least some late June of last year, the time when we around the lilac, lay eggs where afternoon shade. I grew greens planted our last garden in Arlee, they aren’t supposed to and poop successfully and, after putting a the space was one big, funky, over- all over the place. Something tells hoop house over our tomatoes, grown experiment and I loved me, with the chickens, I’ll get my wish. basil and peppers, grew those well, every inch of it. too. I let our goats roam and poop So, it’s with a slightly heavy Continued on page 22 Homesteader 2010
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Photo courtesy Seth Quackenbush
I want to keep a burn pile behind the garage with the hope that maybe the kind folks renting our house in Arlee will let us come up every once in a while to burn branches, yard waste and, to be honest, the stack of leftover bill stubs I can’t bring myself to throw away. During our country years we were trained to toss all excess paper—mail or otherwise—into a paper grocery bag underneath the sink. When the weather was right we struck a match to it out in the pasture and watched the flame curl around the edges of it all. Lately, I realize we are still finding our place in town and that all that I want probably isn’t realistic. But still, I’m trying to weigh who we were when we moved here with who we are now and who we will be in a few 22
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years. And so far, I’m finding compromise. We may have unruly beds with overgrown vegetables in our city backyard, but the chickens will probably need a coop. We can have our problematic compost, but maybe we buy a paper shredder for all those extra pieces of paper we have lying around. The tree branches and yard waste? Well, they’ll probably need to go to the dump. I’m not totally sure about any of it yet. But as the weather warms, one day I will put my bags down and start digging. The dirt of our new garden will get under my fingernails, in my hair and, eventually, under my skin just as Arlee did. And somewhere along the way the city will become our place.
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Photo by Cathrine L. Walters
Colorful accents, above, and refinished wood floors, below, are two choices for easy improvements.
Makeovers made simple Our experts’ top low-cost, high-reward home projects by Skylar Browning As a kid, I was convinced my mother consulted a Magic 8-ball or spun some secret wheel to determine her next home improvement project. There was little rhyme or reason to her endless tinkering, but she always—always—found something to repair, rearrange, retouch, remodel or outright change. To this day I’m convinced we moved at least twice when I was younger simply so she could have a new set of home improvement challenges. I didn’t inherit my mother’s penchant for compulsive tinkering. Unlike her, I’m often crippled by the prospect of even the smallest project. I require advice, guidance and a certain amount of assurance that what I’m doing will work brilliantly, because god forbid it doesn’t and I have to, gasp, start over and try something equally terrifying. It’s a miracle I success24
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fully change light bulbs. To call me more calculating would be an understatement. Whether you’re more in line with my mother’s fearless experi-
experts were asked to list their top low-cost, high-reward home improvement projects. “Low-cost” and “high-reward” were intentionally left open to interpretation, and
think my mom’s already on her second project.
Dusty Hutchins Shop foreman and volunteer coordinator Home ReSource
Seeing green
menting or my squeamish hesitation, we both share a desire for one thing: a good idea for the next undertaking. With that in mind— and understanding, of course, that she and I have much different definitions of what constitutes a “good idea”—a collection of local Homesteader 2010
we encouraged our panel—interior designers, a real estate agent, a hardware store employee and a Home ReSource employee—to stick to their area of expertise. The results could leave anyone with at least a few ideas of how to make their home, well, homier. In fact, I
Building a cold frame, or a small greenhouse, extends your ability to grow plants and vegetables during Montana’s harsh winter months. The actual structure costs almost nothing to build and leaves a lot of room for individual creativity—Hutchins recently built one with a recycled shower door “because they don’t get used very often and it looked pretty cool.” Depending on the size of the cold frame, Hutchins estimates the project could cost less than $30. Continued on page 26
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Hutchins admits he hates carpet. What’s more, those dastardly carpets often cover a beautiful hardwood floor that can be brought back to life with a little love and attention. First, peek underneath the carpet and see what you’re dealing with. Then rent a sander, scraping tools and stripping materials, some of which are available at Home ReSource. The majority of the work entails your sweat equity. “Depending on the size of the room I think you could do it for less that $100,” says Hutchins, “even with the rental fees.” Home ReSource, a nonprofit building materials reuse center, is currently moving from its old location (825 W. Kent Street) to its new, larger home at the corner of Russell and Wyoming streets.
Renee Brown Owner Double Happiness Interior Design
De-clutter It’s amazing how many things we keep around that just clog up our environments. Brown knows it can seem overwhelming to embark on the de-clutter process, but suggests an easy entry point: Take it one room at a time. Have two boxes and a trash bag ready for each room. Label one box “Keep” and one box “Let Go.” Collect all the things you have occupying bookshelves, coffee table tops, etc., and lay them out on the floor. Start a “love it, want it, need it” pile for things you’ll keep in your space. If you don’t love it (right now), want it (right now) or need it (right now), it goes in one of the two boxes or the trash. The “Keep” box allows you to store those things you feel you want to hold on to, but don’t feel strongly about living with on a daily basis. The “Let Go” box allows you to pass on cool
stuff to family or friends, or donate to an organization that will help it be repurposed. Once you’re done, Brown says you can have fun decorating your space with those things that you actually love, want and need.
Re-hang your art Have you ever moved a piece of art and all of a sudden it looks totally new? Brown suggests trying that with your whole house. “Take all your art down and place it in your biggest room leaning against the walls,” she says. “Reevaluate where pieces could be placed to create a fresh look.” Renee Brown can be reached at doublehappinessdesign @yahoo.com, or at her design studio located inside Abode Natural Building Supply, 215 E. Main Street.
Randy Burris Floor manager Ace Hardware
Fresh coats “Painting is probably the easiest thing I can think of,” says Burris during a particularly busy recent weekend afternoon spent greeting customers—most by name—and directing traffic at the store’s entrance. “It makes everything look like new, instantly, and anyone can do it. That’s a no-brainer for me.”
Garden variety Burris struggled with naming other projects mostly because he didn’t want to tack on too much cost or assume everyone is willing to embark on a big project. Decks, for instance, are pretty straightforward, and only require tools, lumber and “a little know-how.” But Burris wasn’t sure the know-how part was universal. He eventually settled on the more accessible task of gardening. Flowerbeds are extremely inexpensive and add a Continued on page 28
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nice curb appeal to any home. Seed packets run roughly $2 each, and bags of mulch or soil additives only cost a few more dollars. “Then, I’d grab a few river rocks or bricks or edging to dress up that flowerbed,” he says. “It certainly doesn’t take much.”
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Zanganeh keeps it simple by focusing on colorful accents to spruce up a room. Specifically, she recommends thinking of pillows, throws, rugs and floor mats. The Modern Basic Dragonfly Pillow at House, for instance, runs $55 and comes in olive green. Another example: The Chilewich Abstract Orange Spun Vinyl Floor Mat, also $55, can liven up an entryway, bathroom or deck. It’s washable, quick to dry, resistant to mold and mildew and available in five different colors.
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Art is another quick solution to changing up your home’s look and feel. “It starts conversations,” Zanganeh says, “and quickly adds interest to a room.” Zanganeh recommends canvas wall art for a kitchen or any space looking for a modern accent (Avalisa’s pear runs $65); artistic coat racks for foyers (the Orange Abstract Rack, $160, attaches to the wall); and wall stickers for any room in the house (Ferm Living’s branches are wicked cool, and cost $145). Can be found at House Design Studio, 133 N. Higgins Avenue in downtown Missoula.
KD Dickinson Real estate agent Portico Real Estate
Paint by numbers Dickinson naturally approached the question from the perspec-
tive of a broker looking to make a home more attractive to potential buyers. “My niche is dealing with low-income or first-time homebuyers, so it’s not like I’m going to walk in and say they need a new roof or something big and fancy,” she says. “My clients aren’t going to be in position to spend $10,000 before they put their house on the market.” That said, Dickinson says focusing on painting the main living areas of a house with “cute, bold colors” generates a big bang for the buck. Depending on the home’s layout, focus on a family room, kitchen or main entryway first, and feel free to leave bedrooms a solid white. “If you walked into two identical homes and one is just white walls and the other features amazing, bold colors in some key spots, you’re going to see a better reward in the more colorful house,” she says. “It’s the easiest improvement to make.”
Look down Dickinson says a lot of the projects that best improve a home’s resale value don’t show up to the naked eye. “Nobody walks into a house and says, ‘Oh, look at the insulation!’” she says. “Nobody sees it, but it does help sell the house.” She points to energy efficient improvements, such as windows, a new furnace and improved insulation as some of the more obvious upgrades. “Windows aren’t necessarily low-cost, but relatively speaking they can be on the lower end of the spectrum,” she says. But if you’re looking for a more aesthetic change, Dickinson makes a suggestion similar to Hutchins’—yank up the carpet. A simple, refinished hardwood floor makes a strong impression on a buyer.
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30
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2010 MISSOULA H Oby theUMissoula S I NOrganization G RofEREALTORS PORT ®
Introduction
jbooher@montana.com www.PropertiesMissoula.com
The Missoula Housing Report was started in 2006 by the Missoula Organization of REALTORS®. In 2009 we were excited to partner with the Missoula Independent to create and distribute the condensed version of the full housing report (which is available at missoularealestate.com under “market trends”). We continue that tradition in 2010 because this is a great opportunity to give the current economic position of local housing and to provide as much information as possible regarding the local market. We thank the Independent for their efforts in making this happen. For clarification, when we say “we,” the reference is to the Housing Report Coordinating Committee. The individuals included in this group reach throughout the Missoula regional community and represent diverse industries and points of view related to the local housing market. Our overall purpose in devoting the many hours required to produce this report is: “To provide a comprehensive, credible, and neutral picture of Missoula housing that can be used as a tool by community members and poli-
2001 2002 2003 2004 2005 2006 2007 2008 2009
Missoula Annual Sales 1,211 1,119 1,150 1,290 1,536 1,586 1,385 994 1,023
cy makers as they seek to serve Missoula’s needs.” “Neutral” indicates our intent to provide accurate and unbiased data related to housing. Neutrality is important, because issues of housing, land use, and growth may be unsurpassed in their ability to elicit argument and emotion. While we recognize that there is nothing wrong with argument and emotion, we strongly believe that they require a founding in fact and reason. That’s what this report attempts to provide. With great respect for the land we all call home, and for the entire Missoula community that shares that land, we invite you to read this report and get involved in meeting the housing needs of our community. We hope that by providing this report, we will trigger discussions and actions that will further contribute to a shared community vision and leave a positive legacy for future generations of Missoulians.
Home Ownership Market Housing Occupancy Missoula County’s housing occupancy is made up of 58% owner-occupied and 33% renter-
Median Price $138,000 $149,500 $163,000 $179,000 $192,000 $206,850 $219,550 $215,000 $208,775
% Change Median Price n/a 7.69% 8.28% 8.94% 6.77% 7.18% 5.78% -2.12% -2.98%
Table 1: 2009 was a year of mixed results for the Missoula housing market 32
Missoula Housing Report 2010
occupied. In the Missoula Urban Area, occupancy is split about 50/50 between owner- and renter-occupied. Past data indicate that this represents comparatively fewer owner-occupied homes and more renter-occupied homes than in the state of Montana as a whole or the entire US. The divergence of Missoula from state and national figures is not great, however, and may be explained mostly or entirely by Missoula’s being the home of the University of Montana, as many
students are renters and few are homeowners. The vacancy level totaling about 9% is not entirely comprised of units for rent, as total vacancies in our community include a significant number of residences that are used only seasonally or are temporarily vacant. Sales Volume and Price Trends The negative trends in housing noted in last year’s Housing
Median Price of Homes Sold in Missoula Urban Area
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Report were reversed in some cases and extended in other instances, making 2009 a year of mixed results for the Missoula housing market. As in 2008, major statistical measurements of the local housing market in 2009 were not as weak or as negative as at the national level. The increase in number of homes sold, coupled with the decrease in median sales price, is consistent with national trends for 2009, and reflects the beginning of a recovery in moderately priced to lower-priced homes that has not yet been seen in the market for more expensive homes. Homes sold in Missoula increased by 3%, with 1,023 sales in 2009, up from 994 in 2008. The median price of homes sold in 2009 dropped by 3%, from just under $215,000 in 2008 to just under $209,000 last year. While the number of homes sold in the Missoula Urban Area in 2009 reversed a two-year slide, the median price of homes sold declined for a second consecutive year – and at a steeper rate than in 2008. Nationally, as reported by the National Association of REALTORS®, existing home sales numbered 5,156,000 for 2009, which is 4.9% higher than the 4,913,000 transactions recorded in 2008 – for the first annual sales gain since 2005. But median price declined nationally far more than locally, as the median of $173,500 for 2009 is 12.4% less than the median of $198,100 in 2008. Looking more closely at our local market’s sales over the past two years, quarterly sales of homes show that year-over-year
Number of Missoula Sales Price Range 2001 $0-150,000 715 $150,001-$200,000 276 $200,001-$275,000 146 $275,001-$350,000 41 $350,001-$425,000 18 $425,000 + 15 Total 1,211
2002 569 292 153 59 31 15 1,119
2003 432 366 202 87 30 33 1,150
declines extended into the first half of 2009, while third quarter sales in 2009 matched those for the same quarter of 2008, and fourth quarter 2009 sales dramatically improved over the last quarter of 2008. That outcome is not unexpected, as the national financial crisis peaked at the end of 2008, and the final quarter of 2009 benefitted from the first-time homebuyer federal tax credit. The original legislation ended the credit on December 1, 2009, so buyers rushed to purchase before that deadline (which Congress then extended into 2010). With the first-time buyer tax credit, low interest rates, and difficulty lending in upper-end homes, Missoula’s Housing market experienced a bifurcation as represented by Table 2. Although still down from the 2005-2007 highs, the number of homes sold priced under $275,000 remained steady or even experienced slight gains. The number of homes sold above $275,000 experienced continuing lows. Condominium & Townhouse Sales The gain in the number of homes sold was not realized in sales of condominiums and townhouses. A sales decline from 2008 to 2009 was registered in four of six price categories, with the other two categories essentially unchanged. The decline in sales of condo and townhouses in the two lowest price categories – those sold for under $125,000 and for $125,000 to $150,000 – is at least partly attributable to the greater challenge today of
2004 338 478 269 124 52 40 1,301
2005 311 553 383 151 83 77 1,558
2006 289 472 439 197 96 93 1,586
2007 170 405 429 199 87 102 1,392
2008 121 301 297 166 47 64 996
2009 122 355 327 124 48 49 1,025
Source: MOR Multiple Listing Service
Table 2: Number of sales was boosted by sales of moderate and lower priced homes. 34
Missoula Housing Report 2010
building units that can be priced in those ranges without selling at a loss. Comparative Trends in Home Prices Figures 4 and 5 indicate the greater severity of the housing downturn in the US – both nationally and regionally – than in our local market. The downturn also started sooner elsewhere in the US than in Missoula, with the number of homes sold dropping since 2005, a year earlier than in Missoula, and the median sales price declining since 2006, also a year earlier than in our market. Elsewhere in the US, housing has declined to a distressing extent. According to the widely respected State of the Nation’s Housing for 2008 (issued in June 2009), from the Joint Center for Housing Studies at Harvard University: From their quarterly peaks during the housing boom to the last quarter of 2008, real home equity was
down 41%, existing median home prices 27%, new home sales 70% percent, and existing home sales 33%. The first-time homebuyer tax credit helped spur a recovery or stabilization in sales of low to moderately priced homes, leaving unaffected the declines in sales of more expensive homes. That dynamic largely explains the 2009 increase in number of sales, while median sales price continued to decline. Pace of Home Sales Another two measures that can help indicate the health of a housing market are the absorption rate and days on market. Absorption rate is measured by dividing the total number of sales for the year by 12, then dividing that resulting number into the number of active listings, which yields the number of months that will likely be required to work through the listed inventory. A result greater than six (months) is generally
National & Regional Number of Existing Home Sales
Source: National Association of REALTORS®
Figure 4: Home sales nationally in 2009 showed a halt to declining sales similar to that in Missoula National & Regional Median Sales Price of Existing Homes
Source: National Association of REALTORS®
Figure 5: ... while median sales price continued to decline
Missoula Housing Report 2010
35
Absorption Rate, National vs. Local
Sources: MOR Multiple Listing Service, NAR
Figure 6: The “buyers market”locally has eased–more so than nationally. Note: Local data has been collected only since the June 1, 2008, date depicted.
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defined as a buyer’s market. Figure 6 shows that the absorption rate, both nationally and locally, has stood at well more than six months for the entire 18 months depicted. In the US as a whole, according to the National of REALTORS®, total housing inventory amounted to a 7.2-month supply at the then-current sales pace at yearend 2009. A second measure of housing market vitality is days on market. Figure 7 shows, as one might expect in our northerly climate, that days on market is generally greater in the first half of each year than in the second half – although this differentiation was largely absent in the past year. The figure indicates that days on market has generally trended upwards since 2002, with a relatively steep climb over the past year. Real Estate Finance Activity in 2009 Interest rates were favorable for most of 2009, excepting a brief June peak in 30-year fixed
Stonewall Estates highlights the grandeur of God’s natural gifts in the splendid views from each 1/2 to 1 acre lot. When complete, 48 home sites will comprise this community with each being served by sewer, water and electricity. Lots starting at $110,000.
rates at 5.75%. Through the year, the federal government bought mortgage-backed securities to ensure that rates remained favorable. As the government reduces these purchases in 2010, interest rates may rise from recent lows. Mortgage Loans The pronounced changes in almost every aspect of the US home mortgage market seen in 2008 were extended through 2009. The most important of these changes was a continuance of more restrictive underwriting requirements, which severely limited the availability of financing for some borrowers. Loans offered to borrowers by the Federal Housing Administration (FHA) were instrumental in increasing the overall number of loans originated. These loans were originated at a near-record pace for first-time homebuyers. The availability of FHA financing has been decisive in our current economic downturn – as it has
Missoula Urban Area Days on Market
Lonnie Haack 406-871-3002 lonnie@stonewall-estates.com
Source: MOR Multiple Listing Service
Figure 7: Local days on the market measures have trended slowly upward. 36
Missoula Housing Report 2010
been in past housing market declines. Nonetheless, FHA imposed a strict regime of lender oversight to enforce prudent lending practices; these are not likely to be relaxed in 2010. A huge spur to sales in 2009 was the First-Time Homebuyers Tax Credit. Sales declined in November, when the initial credit allowance expired. The extended tax credit requires that buyers have a signed contract by April 30, 2010, and close by June 30, 2010. The financially precarious status of Fannie Mae and Freddie Mac has not abated in the past year, and those enterprises remain under indefinite federal government conservatorship. Their ultimate fate is still uncertain. None of the major players in mortgage markets has escaped the financial and regulatory turmoil of the past two years. While some regulatory reform has helped to slightly clarify muddied waters, major deci-
sions concerning the practices and players in the mortgage markets are yet to be established. One significant change was implemented May 1, 2009, pertaining to reforms that apply to valuation mechanisms within the housing industry in both primary and secondary markets, which are aimed ultimately at protecting consumers. The Office of Federal Housing Enterprise Oversight (OFHEO),
an independent agency in the Department of Housing and Urban Development (HUD) that oversees Fannie Mae and Freddie Mac, established a regulatory regime known as Home Valuation Code of Conduct (HVCC). The code establishes requirements governing appraisal selection, solicitation, compensation, conflicts of interest and corporate independence. The intended goal of HVCC
Conventional Mortgage Rates Year-End
Source: First Security Bank
Figure 8: Conventional mortgage rates stood at a decade-low at the end of 2009
requirements is to construct a firewall between lenders and home appraisers, so appraisals aren’t inflated to ensure that a home sale is completed. That effort appears to be thus far successful, if not too much so. According to Bernard Markstein, senior economist at the National Association of Home Builders, appraisals continue to plague builders, many of whom have forfeited most or all profit by the time a valuation disparity crops up. “In most cases,” Markstein said, “it scotches the deal.” HUD has implemented new regulations and overhauled requirements of the Real Estate Settlement Procedures Act (RESPA). HUD has also developed a standardized form, the new Good Faith Estimate of Closing Costs (GFE) that all lenders are required to use. It is intended to provide the borrower with a more accurate accounting of closing costs associated with originating a
Missoula Housing Report 2010
37
mortgage loan. The GFE is intended to be a tool the borrower can use to compare lenders and shop for a mortgage loan. The cumulative effect of new regulations entails considerable costs to lenders. So, while fees should be more disclosed, they also will be somewhat higher as a direct result. Down Payments The average down payment, at 3-10%, remained generally unchanged through 2009. Foreclosures Historically, foreclosures have been relatively rare in the Missoula real estate market, amounting to well below half of one percent of the total owneroccupied stock. Foreclosures in the Missoula real estate market, which increased significantly in 2007 and reached new highs in
Foreclosure Notices & Cancellations Year Notice Cancellation Net of Sale of Sale Foreclosures 2001 161 98 63 2002 206 122 84 2003 177 123 54 2004 174 106 68 2005 176 130 46 2006 215 142 73 2007 247 139 108 2008 313 186 127 2009 565 303 262
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2008, shot up again in 2009, as shown in Tables 3 and 4. Notices of foreclosure sale increased by more than 80% from 2008 to 2009 and are up by 163% over the past three years. Cancellation of notices of sale also increased significantly. Nonetheless, net foreclosures rose in 2009 by 106% over 2008. A break in this relentless climb may be foretold by net foreclosures in the fourth quarter of 2009, which declined to 71 from the 73 recorded in the same quarter of 2008. As high as the rate of increase in foreclosures has been, the number of foreclosures in Missoula represents only about 1% of our market’s total owner-occupied stock (In contrast, Florida’s nationally highest foreclosure inventory stood at 13.44% early in 2010.)
Source: First Security Bank
Table 3: Foreclosure notices and cancellations both increased significantly, resulting in net foreclosures more than double their decade-high level of last year...
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Missoula Housing Report 2010
2009
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Notice of Sale 69 58 67 119 147 141 127 150
Cancellation of Sale 46 46 48 46 70 71 83 79
Net Foreclosures 23 12 19 73 77 70 44 71
Source: First Security Bank
Table 4: ... but provided a glimmer of hope by declining slightly in the fourth quarter of 2009 vs. the year earlier fourth quarter.
Housing Affordability Share of Income Spent on Housing Experts and professionals in real estate and financial planning generally agree that no more than 30% (and, more safely, 25%) of a family’s gross monthly income should be spent on housing. Figure 9 shows that a significant percentage of households, divided into four age groups, spend more than the recommended maximum 30% of income on housing. Here, too, the national scene appears to be significantly more troublesome than is our local market. According to Harvard’s State of the Nation’s Housing, “In 2007, nearly three-quarters of severely cost-burdened households had low incomes. Fully 51% of low-income renters and 43% of low-income owners paid more than half their incomes for housing.” In Missoula, homeowners in the 25 to 34 age group spend an average of some 42% of their gross incomes on housing, while homeowners in the youngest age group, on average, go beyond the recommended maximum to about 35%. Fewer homeowners in the upper two age groups are burdened with excessive payments. This is attributable in part to members of the older generations having purchased their homes before prices began their steep advance in the 1990s and
through 2007, with many of them having paid down most or all of their mortgages. For renters, divided into the same age groups, the average percentage spent on housing significantly exceeds that of homeowners. Among renters, even those in the older age groups do not show the same low level of incomes going to housing as among homeowners. In fact, the profile of those in the oldest age group reveals that the percentage spent on housing is even greater than that spent by the youngest group. Status of Rental Assistance The Missoula Housing Authority (MHA) has 754 available Section 8 vouchers that subsidize rent to private landlords for eligible program participants. Another 262 vouchers are provided in Missoula by the Montana Department of Commerce. Combined availability of these vouchers, which are inadequate to meet needs in a healthy economy, is further strained by the economic downturn, as tenant incomes are reduced and funding for vouchers has not been increased. Reduced tenant incomes caused the per unit cost, or need for assistance, to increase by 11% in 2009, where previous years saw increases of 2% to 3% – roughly the cost of inflation. MHA has only the budget to support 730 to 740 of their 774
Percent of Income Spent on Housing, Missoula County 2009
+
Source: US Census Bureau, American Community Survey 2006-2009
Figure 9: A significant share of homeowners and most renters still spend more than 30 percent of income on housing.
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Missoula Housing Report 2010
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(406) 880-1540 vouchers. Additionally, during 2009, few families moved out – again a reflection of the poor economy – so MHA was able to admit only about half as many families as in recent years. Amid this squeeze on supply, demand increased. The number of unduplicated households on MHA waiting lists on December 15, 2009, was 1,824, up from 1,410 in 2008 and 1,079 in 2007. The number on the Section 8 waiting list was 1,669 and the numbers on two of the waiting lists dedicated to homeless households were 136 and 118; each of these lists was “pulled” from in the last month prior to this number. “Pulling” involves contacting the individuals and families on each list to ensure they’re still in need. So the wait time for those at the bottom of the waiting lists has in some cases stretched past three years. The US Congress relieved this extreme strain somewhat,
by authorizing additional funding that restored the voucher program to its earlier funding level. But this was inadequate for expanding capacity to meet additional needs, and fewer families were being served at year-end 2009 than at the same time a year earlier. On the plus side, MHA and the Missoula and Billings-based homeWORD added a total of 72 units of affordable housing. (MHA’s project will complete leasing early 2010.) As part of the 2009 federal stimulus program, Missoula received $350,000 for the Homeless Prevention and Rapid Re-housing Program (HPRP) administered by the Human Resource Development Council (HRDC). The first HPRP application was taken on October 5, 2009, and resulted in 41 families being assisted with rent, arrears, and deposit, totaling about $45,000. More than 200 other individuals contacted HPRP
Missoula Housing Report 2010
41
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Missoula Housing Report 2010
The Missoula housing market faces 2010 with a lot of mixed messages. With the extension of the first-time buyer tax credit and inclusion of existing homeowners, on top of record-breaking low interest rates, the market has remained favorable for buyers. However, even with the number of homes sold increasing from last year, the median price is down by 3%. While foreclosures have been dramatic in other parts of the country for a long time, it wasn’t until the 4th quarter of 2008 that Missoula saw it affecting the local market. At 262 net foreclosures, it represents 1% of owner-occupied stock. While still a low figure in the overall scheme, it’s almost double what the Missoula area has seen in the past. Due to the relative strength of the Missoula housing market as compared to the national picture, housing affordability has not improved locally to the same extent it has improved in some regions in the US. For the US as a whole, the mortgage payment on a medianpriced US home had fallen to about 15% of average family
income by year-end 2009, from more than 25% three years ago. Affordability arguably remains the greatest challenge in our local market. Lenders will continue to assess their risk, which may directly impact the availability of certain programs and underwriting guidelines. The direct impact to the borrower could be larger down payments, additional fees and higher mortgage insurance premiums depending on the type of financing. What does the future hold for the Mortgage Banking Industry? A main concern is the ongoing and unprecedented liquidity crisis. Fannie Mae and Freddie Mac were originally established to make sure there was always liquidity in the secondary markets. But they are now on federal life support, with billions of dollars being fed to them until their futures can be determined. Missoula’s housing market is experiencing a roller coaster ride as we look toward the future in 2010. There are still many economic concerns, some of which are unemployment, certainty of employment, home values and overall consumer confidence. Our country and local market are experiencing unparalleled change and forecasting is difficult because the information available is sending mixed messages. It will be interesting to see what it all means as 2010 progresses.
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