ISSUE 96 | OCTOBER 2019
WITH COLDWELL BANKER TOMLINSON
GROWTH OF FAIRCHILD With all the talk of Amazon and other corporate employers, we should not forget the massive impact made on our economy, and specifically our housing market, made by Fairchild AFB. Currently, Fairchild is Spokane County’s largest employer, with just under 6,000 employees, including both activeduty and civilian personnel. It is home to 44 KC-135 Stratotankers, and expects to receive 15 more over the next 18 months. Roughly 1,000 people will come with those aircraft, an estimated 400 of whom will be active-duty Air Force personnel. The arriving personnel will be dedicated primarily to maintenance and operations responsibilities. No other individual base, or country, boasts as many refueling tankers as Fairchild. According to Base Commander Col. Derek Salmi, “If Fairchild were its own nation … we would have the second largest refueling fleet in the world.” Fairchild was a natural spot to receive this refueling wing, because of its strategic location which enables the Air Force to dispatch fueling tankers anywhere in the world. About 10 percent of the wing is currently deployed. With such a large anticipated influx of personnel, housing is a concern, and the base is working closely with nearby city governments and developers to increase the rate of construction. In the Fall of 2018, the base hosted 15 contractors and housing developers, as well as Spokane Mayor David Condon, to discuss housing prospects. The Air Force has limited on-base housing and wishes to have a majority of its personnel live off base. During the
Article by Larry Lapidus, Realtor®
conference, the builders in attendance highlighted the fact that, though there is a willingness to build, it is frustrated by a systemic shortage of tradespeople to do the building. According to Col. Salmi, most of the airmen will require single-family homes. According to the Spokane Association of Realtors’ Multiple Listing Service, only 961 single-family homes were available throughout the region at the end of September. Just last month, the base hosted the Exercise Mobility Guardian exercise, during which roughly 4,000 U.S. military personnel, along with personnel representing 25 to 35 allies and partner nations, converged on Spokane for joint training on mobility aircraft. The exercise, hosted every two years, simulated a war zone in the Pacific Northwest so that participants could perform practice missions between coalition forces to prepare for potential future conflicts. “Unmatched rapid global mobility exists because of the ready and resilient airmen who execute the mission day in and day out,” said Gen. Maryann Miller, commander of the Air Mobility Command. “Training exercises such as Mobility Guardian are critical to ensuring our airmen are able to keep AMC’s promise to always be there for those who depend on us, both today and tomorrow.” Fairchild also hosted a successful SkyFest 2019 this summer, attended by thousands of Vets and their families, as well as active personnel and civilians looking for excitement. The event featured demonstrations by the F-22 Demonstration Flight Team, the U.S. Army Golden Knights, and of the KC-135 Stratotanker.
NON-QM LENDING: “THE BIG SHORT PART 2?”
Article by Larry Lapidus, Realtor®
The only reason why The Great Recession of 2008-13 did not dwarf The Great Depression of 1929-39 was that the United States Treasury under Barack Obama did not stand by, as it did under Herbert Hoover, and let it happen. Instead, it provided cash and credit, at O% interest, to huge players in the financial industry worldwide, including foreign governments, when their own resources were exhausted.
to-value mortgages are considered non-QM because they carry with them a high risk that the average borrower will be unable to repay them. To the non-average borrower, however, whose circumstances may not match the federal standards of QM lending, but whose financial circumstances provide assurance that they will in fact be able to repay, these “creative” mortgage solutions can be a godsend.
Even so, millions of Americans lost their homes, lost their jobs, lost their families, and even lost their lives. The cause of this calamity was pervasive fraud in the highest levels of the financial markets, expressing itself in residential lending that was at its best over-optimistic, and at its worst crooked, heartless and predatory.
For example, most QM loans require that the borrower submit his tax returns for the past two years. But what if that borrower has lived out of the country for the past three years, and has not filed US tax returns? Or what if the borrower is self-employed and writes off enough business expenses to make his income appear unable to support payments for the loan he needs? For such people, non QM lending may be both safe and appropriate.
That we have emerged from The Great Recession is due in no small measure to the establishment of new standards of practice designed to make the schemes that led up to it impossible to replicate. However, for those of us with vivid memories of the events of a decade ago, a bud has appeared in the lending industry that emits an odor disturbingly reminiscent of 2003. The name of this little flower is “non QM (standing for “Quality Mortgage”) lending.” It is most important to realize, however, that in most cases what used to be called “sub-prime” loans and are now termed Non QM, were not bad in themselves, only totally unsuited to the people to whom they were sold. Opioid pain-killers are a blessing to people who need them and can use them as prescribed by a responsible physician. Likewise, Adjustable Rate Mortgages (ARMs), Asset-only (or “Bank Statement”) mortgages, high loan-
Who is to decide whether such a loan is advisable or not? Unless the applicant has the knowledge and training to evaluate the complex of risk and benefit that makes up every mortgage loan, the applicant should seek out the advice of someone who does, and who also has the character and integrity to provide sound advice. Some turn to their professional financial advisor, but for the majority of people who lack such a counselor, an honest, reliable loan professional provides a safe haven. Friends and family may be able to recommend such a professional, but, if not, your Realtor, who, both by law and personal commitment can have only your best interests at heart, has developed a network of relationships that can provide the specific guidance you need.
COMMUNITY SPOTLIGHT
PICADILLO INGREDIENTS
LIL & PHIL.
• 1/2 large onion • 1 cup green olives, pimento-stuffed • 1 cup golden raisins • 8-15 whole cloves • 2-4 lbs. beef (rolled roast or any good quality cut of beef, cut into 1 inch strips) • 1/2 tsp. cayenne pepper (if you like, add a tsp. of chopped jalapeños) • 5-7 cloves garlic, crushed • 1 (14-oz.) can stewed tomatoes • 1 (6-oz.) can tomato paste • 1/2 cup red wine (or as much as • 1/2 tsp. cumin
Sweet cats who will delight and entertain their new family by happily playing together. They will reward their lap owners with purrs and much gratitude. #2019-10932
FERRON.
Picadillo is a spicy Argentine dish made with quality beef, golden raisins, and green olives. It is best prepared in advance to allow the spices and olives to permeate the stew.
INSTRUCTIONS
Brown the meat, garlic and onions in your skillet or crock-pot. Add all the other ingredients, mixing thoroughly. Cook on low heat until meat is fork-tender. This dish is best when it is prepared a day or so in advance and then reheated just before serving. It is customarily served over rice or with potatoes.
The first thing you might notice about Ferron are his beautiful brown eyes; they seem to be pleading for you to take him home and love and cherish him. #2019-6920
Interested in adopting or donating? Call SCRAPS Today! 509.477.2532
NOW TRENDING: THE REVIVAL OF WALLPAPER and ’90s, wallpaper became the stuff of our parents’ decor, and our grandparents’ decor. It wasn’t cool, it wasn’t contemporary, it wasn’t chic—by all definitions, it was stale.
Wallpaper. It’s the word that still makes some people shudder from long-held memories of those godawful, old-fashioned designs that were permanently affixed to Grandma’s walls. Wallpaper is one of those things that fell out of the zeitgeist—hard. After pervading the home decor trends-sphere in the ’70s, ’80s
optimistic aesthetic. Darker colors create a cozy atmosphere and depending on the chosen color, can range from romantic to mysterious.”
BRING IN SOME TEXTURE Yes, deep, rich color can transform a space, giving it moody appeal and allowing décor to stand out. But beige does not have to be boring. That is, so long as there is real or perceived texture, interactions with light, or even a two-dimensional design. That means using textures like grass cloth and faux suede, which are particularly well-suited GO DEEP for the color-averse. These will bring Wallpaper trends this year have depth a space without insisting upon embraced deep, rich hues including the spotlight. navy blue shades, burnt red, mustard yellow, and forest green. Lighter colors tend to create a welcoming, Contributed by Larry Lapidus, Realtor® Today’s wallpaper is a world away from the stuff people went running from decades ago. There is now a wide range of colors, patterns, and textures to elevate a home and give it character. The revival of wallpaper means it’s time to be fearless and have a little fun. Here are two of the biggest trends:
Coldwell Banker Tomlinson 4102 S Regal St, Suite 201 Spokane, WA 99223
@HOME WITH
ISSUE 96 | OCTOBER 2019 ©2019 Coldwell Banker Tomlinson. All rights reserved. Each office is independently owned and operated. If you currently have an Agent assisting you with the purchase or sale of property, this is not a solicitation for business.
SPOKANE REAL ESTATE MARKET STATISTICS
2018 2019 71 57 55 48 62 50 The average closed price55for September 2019 44 was $289,395 compared to 59 when the 53 average45 40 September 2018 price was $259,568. (Does not represent home values) 53 45 35 36 53 39 30 31 52 31 The median closed price35for September 2019 28 was $267,500 compared to 53 when the 37 median 35 31 September 2018 price was $235,000. (Does not represent home values) 54 43 33 29 55 44 35 23 Closed sales of 56 single family 42 homes36on less than one acre including condos for September 2019 59 total 799 45 compared 39 to September 2018 when the total was 744. 60 49 44 2016
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2017
AVERAGE PRICE UP 11.5% MEDIAN PRICE UP 13.8% SALES UP 7.4%
INVENTORY UP
Current inventory, as of this report totals 977 properties which represents a 1.2 months supply. NOTE 1: Inventory does not include CTG-Inspection. As an example - Inventory, including CTG-Inspection (now Pend-Inspection) would total 1,486 properties, a 1.9 months supply. NOTE 2: Using the old method inventory is up 2.4% as of this report (1,486 compared to 1,451 last year at this time).
DAYS ON MARKET JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2016
71
62
59
53
53
52
53
54
55
56
59
60
2017
57
55
53
45
39
35
37
43
44
42
45
49
2018
55
50
45
35
30
31
35
33
35
36
39
44
2019
48
44
40
36
31
28
31
29
23
MARKET UPDATE How many are there and how long will they last? In real estate, it relates to inventory, or how many properties are for sale and how long it will take to sell them. 6 months is a balanced market; neither buyer or seller has any real advantage. Less than 6 is a seller’s market; above 6 is a buyer’s market. This information can help decide whether to set a list price high or low. For example, at the time of this writing, the price range of 350K-374K is at 5.3 months; from 375K-399K it’s 7.2 months. Keeping the list price in the lower range means a difference of 2 months inventory and a better chance of selling faster by hitting a certain price break. Your Coldwell Banker Tomlinson agent can get you this information, which may make the difference between selling “now or later.” Article by Cody Kerr, Realtor®
Information comes from the SAR’s Monthly Activity Report which looks at single family residential/site built properties on less than one acre and condominiums.
CONTACT ME WITH ANY QUESTIONS OR FOR DETAILED MARKET INFORMATION.