2 November 2014 - The Key
TABLE OF CONTENTS
A product of The Bulletin’s Special Projects Division, P.O. Box 6020, Bend, OR 97708. All content is the property of The Bulletin/Western Communications Inc., and may not be reproduced without written permission. Printed by Northwest Web Press, www.northwestwebpress.com
Industry Professional SPOTLIGHTS Housing Bubble or New Normal? ................................... 4
Appraisals vs. Assessments ......................................... 15
By Andy High, Central Oregon Builders Association
By Lawnae Hunter, Windermere Central Oregon Real Estate
The Right Balance ........................................................... 5
Affordability in Central Oregon .................................... 16
Answering Your Real Estate Questions The Key, a collaboration of The Bulletin Special Projects, Central Oregon Association of Realtors and Central Oregon Builders Association, unlocks answers to local real estate questions that linger for buyers and sellers, as well as the community at large. Industry professionals and business leaders come together to offer guidance and tips to current and prospective homeowners.
By Wendy Adkisson, Cascade Sotheby’s International Realty
By Thomas J. Kemper, Housing Works
Looking Outside the Box: Comparing Markets ............. 6
The Lap of Luxury ......................................................... 18
By Sandy Garner, Garner Group
By Wendy Adkisson, Cascade Sotheby’s International Realty
Questions Answered: Lending & Lenders ..................... 8
The Dream of Homeownership .................................... 20
By Kevin Pangle, Evergreen Home Loans
By Jason Carr, NeighborImpact
Special Projects Photographer: Kevin Prieto Special Projects Editor: Althea Borck Published: Saturday, Nov. 22, 2014
A+ for Education: The Draw of Local Schools ............. 10
Bend’s Urban Growth Quandary .................................. 21
By Alandra Johnson, Bend-La Pine Schools
By Central Oregon Association of REALTORS
The Cycle of Economic Diversity .................................. 12
Essay: Confessions of the Self-Employed..................... 22
By Roger Lee, Economic Development of Central Oregon
By John Cal, for The Bulletin Special Projects
Lessons from History: Bend in the 1980s .................... 14 By Mike Hollern, Brooks Resources
In the past year members of the Central Oregon Association of REALTORS® have volunteered more than 14,000 hours and donated more than $250,000 to over 100 organizations in our community.
www.coar.com November 2014 - The Key 3
By Andy High of Central Oregon Builders Association
For The Bulletin Special Projects
the
Unknowns
Are we in another housing boom or is this the new “normal”? Photo by Kevin Prieto
U
nknowns are scary things. Will I pass the math test at school? Is this the right job for me and my family? What if the stock market crashes and my 401(k) disappears? No matter the scenario, the unknowns make us consider all the options, good and bad, and compare them to the past. This is certainly true in the homebuilding industry right now. Are we in another housing boom? When is it going to crash again? What’s the future for interest rates? You probably have heard several people ask these very questions, and the unknown draws comparisons to recent history. The fear is that Central Oregon’s real estate market is back in a boom cycle. Though it may feel that way, Central Oregon isn’t even at half of the building permit volume that was seen between 2004 and 2006. In fact, new home permit volume peaked at 4,000 in 2014. During the Great Recession in 2009 and 2010, Central Oregon had a low point of new home construction at around 150 permits per year. When you look at those two numbers, it is easy to feel that new home construction is booming, but that’s because we 4 November 2014 - The Key
saw about a 95 percent drop in construction activity. We feel that at our current permit pace at about 1,300 annually, this is a strong solid pace for growth. In other words, it’s a good “normal.” Land, however, will be the biggest factor in the rate of permits. Availability — and in the end, affordability — is what will make or break the next real estate cycle. Redmond, for example, is in a strong position to offer employers and employees diverse housing options. With a 20year supply of land, the city is building the infrastructure necessary to encourage growth. Jefferson County is also in a strong position because of its affordability of land, boosted by new industries setting up shop in the area.
Availability — and in the end, affordability — is what will make or break the next real estate cycle.
Likewise, Crook County is starting to see housing make its mark once again, as industry data centers such as Facebook buy land and the demand for low cost utilities expands. Bend, however, is in the weakest position to see housing affordability. You can already see the housing cost driving potential homeowners into other communities. Bend has a very limited supply of land that will only drive the cost outside the reach of most families. On the good side, Bend has invested heavily in infrastructure because it failed to save and prepare prior to 2009. In the last six to eight years, the Bend City Council has put the city in a strong position to handle the needs of the community and meet the demands of industry growth. There are a lot of factors that will help limit the position that Central Oregon was in 10 years ago. Lending practices have tightened, and there’s less chance of over-leveraging. The industry is also seeing a lot more cash offers. Nearly 10,000 baby boomers retire each day, cashing out their 401(k) to purchase their retirement home in Central Oregon. Moreover, the reduction in the construction workforce is another sign that the industry is
still very cautious. Builders and developers don’t want to put themselves in another desperate position. With this information, I think we are in a great position moving forward in Central Oregon. We will continue to see new housing permits along with a stable pace of growth, but it will level out. Why? Because, even during the Great Recession, there was population growth. Though those buyers bought up the foreclosures, there was very limited new housing starts. The increase in permits now is the market’s way of catching up to itself fell to meet the increase in population. The normal for Central Oregon’s real estate construction is focused on keeping pace with demand, and that’s not a worry yet. ANDY HIGH is a fifth generation Oregonian from Klamath Falls. Since 2006, High has served as the Staff Vice President of Government Affairs for the Central Oregon Builders Association. He is an elected board member for BendLa Pine Schools and is involved in EDCO, Chair of the Affordable Housing Committee , and sits on multiple city and county committees.
By Wendy Adkisson of Cascade Sotheby’s International Realty
For The Bulletin Special Projects
The Right Balance E
veryone in Central Oregon lives here for a reason — a reason as personal and individual as each of us are. I believe we would all agree on one thing though: Future plans for the growth of our communities must keep in mind the need to preserve those aspects of our lifestyle that brought us here and keep us living here by choice. With the planned opening of the new Oregon State University four-year campus in Bend and the continuing influx of people attracted to our lifestyle, we know the demand for housing will continue to increase. More buildable land is going to be pivotal in meeting this demand, which means we need to make the Urban Growth Boundary expansion and smart, sustainable growth a priority. The Central Oregon real estate market experienced what much of the country experienced during the downturn from 2006-2010, but at a much more severe level. Prices accelerated at a never-before seen pace from 2003 to 2006, during which time the median sales price for a single family home in Bend increased more than 80 percent. Then, just as dramatically, when the market crashed, prices dropped between 2006 and 2010 by 46 percent. This adjusted prices in 2010 back to a level comparable to 2003, as if the intervening years had never occurred. During the depths of the market, new construction in the Bend area nearly came to a halt. In 2010, only 127 newly built single-family homes sold as compared to 741 at the height of the market in 2006. In 2012, when the market first began to recover, the median sales price began to accelerate rapidly. This was due to the disparity between supply and demand. Many homeowners were still underwater on their homes and therefore couldn’t sell, so the few homes that did hit the market were absorbed quickly. From 2011 to 2012, the median sales price in the Bend area rose 16.8 percent.
From 2012 to 2013, it rose another 21.2 percent. This unsustainable appreciation began to moderate in direct correlation with the increased pace of new home construction. There was such excessive pent-up demand from buyers who had previously been afraid to buy, that even as new home construction started to pick up again in 2012, it couldn’t quite keep up with the demand. As more builders enter the market and the inventory begins to increase, we’ve seen price appreciation begin to slow to a more reasonable rate. Sales to date in 2014 as compared to 2013 show a 7.5 percent increase in the median sales price, a number much closer to the historical levels of roughly 6 percent annual appreciation for real estate. The story is a common one throughout Central Oregon. As it became clear that we had reached the bottom of the market and were recovering, buyers who had previously hesitated to put money down on a home flocked to the marketplace and depleted the supply of inventory, driving prices up. While currently we are seeing more balance between supply and demand in the Bend area, we must remain aware of the future needs of buyers who choose to make Central Oregon their home, and consider how to accommodate those needs at a level that will help keep housing as affordable as possible. Note: All statistical numbers are courtesy of the Multiple Listing Service of Central Oregon.
WENDY ADKISSON is the Managing Principal Broker for Cascade Sotheby’s International Realty. Also serving as COAR’s 2014 President, Adkisson has been an active part of the real estate industry, primarily in management, since 1985. She has very much enjoyed the opportunity during her tenure to work with some of the most successful professionals in the business.
A closer look at housing numbers reveals a need to keep the region affordable.
Median Sales Price 2000 - 2014 Bend Area Residential Under 1 Acre
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Median Sales Price 2014 Breakdown January - September
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000 January
February
March
April
May
June
July
August
September
Graphics by Kevin Prieto
Whether you are looking for a new home or have decided you’re ready to sell your home, I can help. Let my reputation for hard work benefit you. Available evenings and weekends too! Vonnie Green, Broker
Cell: 541-815-0097 vonniegreen@msn.com November 2014 - The Key 5
By Sandy Garner of Harcourts The Garner Group Real Estate
For The Bulletin Special Projects
Photos by Kevin Prieto
NorthWest Crossing
$523,371*
As home prices in Bend escalate, interest shifts to outlying communities.
LOOKING OUTSIDE THE BOX Bend
$291,750*
Redmond
$219,000*
Prineville
$130,800*
Oregon
$245,000*
United States (new homes)
$259,000*
*Median home sale prices, September 2014. Comparative sale prices for homes 1,500-2,000 sq ft on one acre or less. Source: Central Oregon Multiple Listing Service, National Association of Realtors, U.S. Census Bureau and RealtyTrac 6 November 2014 - The Key
S
tatistics show that property values in Bend’s NorthWest Crossing neighborhood are significantly higher than they are elsewhere in Central Oregon. This market position has been earned through careful planning and a clear vision on the part of the owner/developer, West Bend Property Co. Can other new home neighborhoods bring similar appeal to market at a lower price point? One answer is to look beyond Bend. Residents of Central Oregon’s other communities enjoy equally desirable scenery and recreation choices. With lower land costs, builders are able to provide the same quality and amenities at more affordable price points. Building activity is picking up in Prineville’s IronHorse neighborhood following the recent recession. IronHorse is master planned similar to NorthWest
Crossing, no coincidence as it is developed by Brooks Resources Corp., one of two partners in West Bend Property Co. (The other is Tennant Family Limited Partnership.) Barnes Butte Elementary School and IronHorse Lodge for low-income seniors are being built within IronHorse and a new St. Charles Medical Center is under construction close by, adding to the appeal. Integration of schools into the neighborhood is also a strong feature of NorthWest Crossing. A new single-level, 1,900-square-foot home with custom features in IronHorse would list and sell in the neighborhood of $270,000. It could not be duplicated in NorthWest Crossing for less than the high $400,000s to low $500,000s, or for less than the mid-$300,000s elsewhere in Bend. Both developments are influenced by
INSIDER
TIPS
Visit these websites to learn more: www.cnu.org/intro_to_new_ urbanism — Congress for the New Urbanism, Chicago. www.terrain.org/unsprawl/18 — Terrain.org is a Journal of the Built and Natural Environments, Tucson, Ariz. History and background of NorthWest Crossing. www.NewUrbanism.org — Alexandria, Va. www.northwestcrossing.com — NorthWest Crossing website www.ironhorseprineville.com — IronHorse website
concepts of “new urban” community integration and environmental sensitivity. As defined by NewUrbanism.org, these include walkability, connectivity, mixed use and diversity, mixed housing sizes and types, quality architecture, traditional neighborhood structure and sustainability. Redmond is also awakening from the recession. More affordable homes and land
are coupled with aggressive economic development and a local government committed to easing growth pains. These are predictors of another growth spurt that will strengthen home prices further as the housing inventory tightens. Bend offers a variety of housing choices at price points that appeal to a broad base of prospective buyers. The ongoing struggle by Bend officials to craft an Urban Growth Boundary expansion that will
meet state density goals threatens to limit those choices and increase land and housing prices in the future. This will increase the appeal of the outlying communities and buying power of homeowners who choose to settle there. NorthWest Crossing stands apart from other Bend neighborhoods in size, visual appeal, content and character. The paradigm that created the environment for strong housing values in NorthWest Crossing was established before the first homes were built in 2002. It emerged at the right time to tap into the growing awareness that good environmental practices can be integrated into everyday living. The 486acre development will contain more than 1,000 homes when build-out eventually occurs. Prices are compared in the accompanying tables. The 1,500- to 2,000-square-foot range for median sale prices through October of this year was chosen to highlight a mainstream segment of the market. Caution: There are statistical anomalies that should be noted. Because there are far fewer homes in NorthWest Crossing than in Bend as a whole, one or two outliers will have an exaggerated effect on statistics. The age of the housing inventory must also be considered in judging relative pric-
es. The oldest homes in NorthWest Crossing are only 14 years old. New home prices are developed in a push-pull environment. They are pushed by the cost of land, infrastructure, site preparation, building materials and labor. The pull comes from the marketplace. Builders and designers must create products that are in scale with the hard costs. Size, design, features, finishes and neighborhood compatibility must be tailored to generate buyer appeal. One thing I’ve learned in 35 years of helping real estate clients in Central Oregon is that the buyer must be served. Design trends come and go, interest rates wax and wane, but the beat goes on. And a home of one’s own still remains the American dream.
SANDY GARNER is President and CEO of Harcourts The Garner Group Real Estate in Bend. She has earned many state, national and international sales awards over a 35-year real estate career and founded The Garner Group as an independent company in 2008. The company established a franchise relationship with Harcourts International in 2014.
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RSVP: Jeanette at Windermere Bend · 541-388-0404 November 2014 - The Key 7
By Kevin Pangle of Evergreen Home Loans
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s n o i t Ques ed r e w s An ing n fi e d d n a g in d Lenders, len . s s e c o r p g in y u the homeb
I WANT TO BUY A HOME. WHERE DO I START? If you need a mortgage, you will need to start by contacting a lender. The lender will help you determine the best loan program for you based on your credit, liabilities, income and down payment. This is also the time for you to determine the maximum monthly payment you want to make based on your desired monthly budget. With this information, your lender can then determine the maximum loan amount you qualify for before you start searching for a home.
DO I PICK A LENDER ONLINE OR GO TO A LOCAL LENDER? Most “online lenders” are based in offices out of your area and often in another state. Most banks underwrite and process your loan out of state as well. Typically, out-of-state lenders and underwriters in big cities don’t know the local market you are buying in or understand things like acreage and local zoning laws. They are required to make decisions based on those guidelines that are restrictive and meet general requirements nationwide. Local lenders live in the area where you are buying and understand your market. They make local decisions based solely
on you and the property you are buying. If you don’t know a local lender, your real estate broker can refer you to one.
IF MY CREDIT IS ONLY FAIR, CAN I BUY A HOME? A credit score is based on many factors: credit paid as agreed, revolving accounts with large balances, accounts with missed payments or accounts with late payments. Collections, judgments, bankruptcies and foreclosures all play a major factor in your credit score, which, in turn, will determine the loan program, down payment required and amount of loan you can qualify for. A credit score of 580 will have tighter guideline requirements than that of a score of 800. FHA, USDA, Federal VA, Conforming and Jumbo loans
For The Bulletin Special Projects
have different minimum credit score and credit requirements. Government loan programs such as FHA will allow a credit score down to 580 when all other guidelines, buyer and property requirements are met. Finally, a jumbo loan (loans more than $417,000) could have a minimum credit score requirement of 680.
WHAT IS THE DIFFERENCE BETWEEN A “PRE-QUALIFICATION” AND “PRE-APPROVAL”? A “pre-qualification” is usually done with a conversation between you and a lender. The lender will ask you your income, if you know what your credit score is, how many liabilities you have and how much of a down payment you wish to make. It is very generic and the information is not verified. Because the information is not fully verified, the “pre-qualification” can, at times, be incorrect and lead to costly mistakes later. A “pre-approval” is done by making a loan application and providing the lender with all the documentation required to secure a mortgage. The lender reviews your credit and credit scores, the documentation provided and determines the maximum loan amount you qualify for with the best possible loan program that fits your needs. The “pre-approval” is the strongest and most reliable process to determine your qualifications. Offers provided to sellers with a strong “pre-approval letter”
Photo by Kevin Prieto
8 November 2014 - The Key
attached give the buyers a greater chance of obtaining an accepted offer.
CAN I BUY A HOME WITH MINIMUM TO NO MONEY DOWN? Loan programs are available that do offer as little as $0 down. The programs are specific to income limits, buyer eligibility and the location of the property being purchased. These programs require the homebuyer to occupy the property full time, all year around.
I LOST A HOME TO FORECLOSURE. WILL I EVER BE ABLE TO BUY A HOME AGAIN? Loan programs are available that allow you to buy again as soon as three years following a foreclosure and after the title of that foreclosed property has been removed from your name. There are very specific requirements following a foreclosure. These requirements vary between loan programs, down payment amounts, credit requirements, buyer eligibility and type of foreclosure.
CAN I HAVE A CO-SIGNER ON MY LOAN? Yes. A non-occupant co-signer is a person, usually a relative that most common-
ly lives elsewhere, that brings additional qualifying income into the scenario to assist a buyer to qualify for a mortgage. The non-occupant co-signor is also on the loan with the buyer, but does not live in the home. The buyer is required to occupy the property full time, all year around. The “non-occupant co-signer is equally obligated on the mortgage and must qualify as well. If monthly payments are late or missed, that person’s credit can suffer as a result. This scenario is not available on all loan programs.
DO I HAVE TO ESCROW TAXES AND INSURANCE IN MY MONTHLY PAYMENT? A lender may, depending on your loan program and down payment amount, require you to “escrow” funds to cover the annual property taxes and homeowners insurance. Instead of you writing a check at year’s end to pay those taxes or insurance, a lender will have you split that total annual amount into 12 equal payments. Your mortgage payment would include that month’s portion of your property tax and homeowners insurance. That money sits in an “escrow” or sometimes called a
“reserve” account with your lender until they pay the bills each year on your behalf.
AFTER I AM PRE-APPROVED AND HAVE AN ACCEPTED OFFER ON A HOME, HOW LONG BEFORE I CAN MOVE INTO MY NEW HOME? Because you have already obtained a pre-approval up front, the process becomes easier after you have found a home and have an accepted offer between you and the seller. You may be required to update some documentation for your lender depending on how long it took to find a home after obtaining your initial pre-approval. The lender will order the appraisal about the time you complete your home inspection. The appraiser usually takes about 5-7 business days to complete the appraisal and return it to the lender for review. Once the lender’s underwriter determines if the appraisal meets guidelines, the value is the same or higher than the agreed sales price and there are no repairs required (by the appraiser or home inspection), the lender can then have your loan documents to escrow for you to sign within 12 to 24 hours after your final loan approval. At escrow, you will then sign your loan papers; this
is called your “signing.” Then, about 24 to 48 hours after signing, your purchase is recorded at the county courthouse and you usually get your keys that evening.
IS THERE ANYTHING I SHOULDN’T DO BEFORE MY LOAN CLOSES? Your lender will double check financial information, employment status, credit scores and other program requirements throughout the loan process and again before your loan closes. Don’t change jobs if you can help it. Don’t move large amounts of money around or suddenly make big deposits. Avoid major purchases. Any changes to your credit or your overall financial stability can disqualify your pre-approval and put your loan at risk. During the past 26 years, KEVIN PANGLE (NMLS #89521) assisted thousands of Central Oregonians in finding their dream homes and acquiring investment properties or second homes. His reputation is built on quality service for clients and friends. Evergreen Home Loans (NML#89511/ML 3213-10) is highly respected by local real estate offices, title companies and local banks.
November 2014 - The Key 9
By Alandra Johnson of Bend-La Pine Schools
For The Bulletin Special Projects
A+ for
Education Schools in Central Oregon are a major draw for families to settle in the area.
V
isitors come to Central Oregon for a variety of reasons. They enjoy the spectacular mountain views, the winding rivers and extensive trails. They return year after year for all the festivals and events, the concerts and shows, the breweries and pubs. But one primary reason people choose to stay and raise families in the area is the exceptional public schools. During the past two decades, Bend-La Pine Schools has grown exponentially both in terms of student population and academic achievement. “I believe our excellent schools are one of the most important factors to people who are considering relocating themselves or their businesses to Bend,” said Charley Miller, owner of Miller Lumber in Bend. “The quality of our school system has been key to our economic recovery and will continue to be key to the continued economic vitality and livability of our community.” David Uri, a consultant and investment banker, and Lisa Uri, a doctor, moved from Connecticut to Bend in 2006 with their three young daughters. Local schools played an important role in their decision 10 November 2014 - The Key
to relocate to the area. Now — with a freshman, a sixth-grader and a second-grader — the Uris have experienced Bend-La Pine Schools at all levels and have a great appreciation for the education their daughters receive. “What continues to amaze me, particularly in Central Oregon, is that you’ve got teachers who really enjoy teaching here,” said David Uri. “That’s a critical, critical element. The enthusiasm they bring to their job, you don’t find that everywhere.” The Uris were part of a wave of families arriving in Bend, looking for a good place to raise a family. In the last 25 years, enrollment in BendLa Pine Schools has nearly doubled, from 8,777 in 1989 to 17,163 in 2014. Likewise, the schools have also grown academically. Twenty-four of the district’s 28 schools earned top ratings on the 2014 School and District Report Cards from the Oregon Department of Education. In the past five years, the district has celebrated three Oregon Principal of the Year honors and the Oregon Superintendent of the Year. Every year, Bend-La Pine Schools staff members earn national recognition in a wide variety of
fields, from business to math and science to coaching and transportation. “We are dedicated to creating world-class schools and achieving world-class outcomes,” said Superintendent Ron Wilkinson. “Having high standards and exceptional staff not only draws families to our schools, but it has also ensured continued, long-term support from the community.” The schools are also a major economic driver in the community. Thanks to supportive local voters, the district has been able to build new schools to accommodate students. Since 1989, the district has built 14 new schools, with two more slated to open in fall of 2015. The result is a boost in construction jobs. “The fact that the region has had almost a new school built every year for the last 20 years has had a sustaining impact on the construction industry, which helps support well-paying jobs and further economic activity,” said Roger Lee, executive director of Economic Development for Central Oregon. “Quality schools have consistently been a marketing tool for both moving companies and jobs to the region as well as retaining
our existing employers.” The local business community is a huge supporter of Bend-La Pine Schools because a strong school system is good for the local economy and the livability of the region. “We continue to see steady growth from new families who are moving to Bend to realize their dreams,” said Kyle Frick, past president of the Bend Chamber of Commerce. “All of them are happy to share their excitement to settle down here and raise kids because of the great schools, community and natural environment that makes Bend such a special place.” Bend-La Pine Schools is dedicated to making Central Oregon a better place to live by continuing the tradition of ever-improving excellence in public schools.
ALANDRA JOHNSON is the Communication & Community Engagement Specialist for BendLa Pine Schools. A native Oregonian, she lives in Bend with her husband and 3-year-old daughter.
November 2014 - The Key 11
By Roger Lee of Economic Development of Central Oregon
For The Bulletin Special Projects
THE CYCLE
OF ECONOMIC DIVERSITY To keep Central Oregon growing, a strong foundation of traded-sector employers is needed.
V
olatility. It is a word often associated with real estate in our tri-county region, which has seen more than its fair share of booms and busts. But is it an inevitable characteristic of the marketplace for land and buildings? EDCO (Economic Development for Central Oregon) views it more as an imbalance in the foundation of the region’s economy. Simply stated, a diverse base of employers in a variety of industries tends to even out the peaks and valleys that have typified our local real estate industry. EDCO is dedicated to creating a diversified local economy and a strong base of middle class jobs in Central Oregon by encouraging companies to MOVE here, supporting entrepreneurs to START a business here, and by working with existing traded-sector employers to GROW their operations. By “traded-sector,” we mean any employer (regardless of size) that sells a majority of their goods or services outside the region and thereby imports new dollars to be circulated within Central Oregon’s economy. Traded-sector jobs are, on average, among the better paying jobs in the regional economy that enable local residents the capacity to buy homes or apartments, and investment properties. Additionally, the new wealth brought to the area by the “export” of goods and services stimulates growth of the non-traded sector, which is where the majority of jobs in the economy are found. Think of our economy as a swimming pool, and the molecules of water 12 November 2014 - The Key
as dollars circulating through it. Local merchants, restaurants, car dealerships, grocery stores, health care providers, and the variety of options we have to spend our income on, circulate the water within the pool. But, as any pool owner or operator understands, evaporation is always at work, so new water must be added regularly. In economic terms, we call it leakage, and in our globally-connected world today it is nearly inevitable. Faster circulation among evermore non-traded sector businesses competing for the same limited number of dollars in a community cannot maintain the level of the economic pool.
their products. Rarely are these all made within a given company (vertical integration) but rather a network of other, often small businesses, supply these pieces and parts (horizontal integration). This is called the “multiplier effect.” Traded-sector businesses historically have much higher multipliers. A similar supply chain supports non-traded sector businesses, but historically it is far less impactful to the broader economy and constrained by the ability of residents to economically support that business. We can’t all buy a new car or couch every year. Few people can afford to eat at a restaurant five days a week.
EDCO is dedicated to creating a diversified local economy and a strong base of middle class jobs in Central Oregon by encouraging companies to MOVE here, supporting entrepreneurs to START a business here, and by working with existing traded-sector employers to GROW their operations. New wealth must be added, and the export of goods and services — be it to the next region, state or country – is that new water. In EDCO’s work there is no value judgment between traded and non-traded sector jobs. But traded-sector jobs tend to create the capacity for non-traded-sector job and business growth. The reverse is rare. For example, an aircraft or automobile manufacturer uses literally hundreds of components to complete
But a brewer of craft beer that exports out of the region will have a vastly larger market to tap that transcends the constraints of the local market. In essence, sustained growth of the traded sector provides a double dose of local demand for real estate. It does not remedy the supply of real estate, which in the face of steady demand can create shortages and the potential for volatility. But more often than not, constrained supply results in an overall persistent inflation of prices.
Exclusive resort communities across the Western U.S. such as Aspen/Vail, Colo., Jackson Hole, Wyo., Sun Valley, Idaho, and Lake Tahoe, Calif., are all good examples of areas with very constrained supply of all types of real estate but sustained demand. They also all share a general lack of middle class jobs because businesses cannot afford local rents for their operations or to pay their employees enough to compete for limited (and expensive) housing. While Bend and the surrounding communities have a reputation as resort and outdoor recreation destinations, they have not yet taken on this exclusivity but are places for the middle class to raise their families, have challenging careers and operate growing businesses. This is the nexus of why EDCO exists — to provide the economic opportunities and diversity for our children and our grandchildren to live and work here. Making it all work is a team effort between the private, public and nonprofit sectors and is a complex and long-term effort.
ROGER LEE is the executive director of Economic Development of Central Oregon. Founded in 1981, EDCO is a nonprofit corporation, supported by private and public members and stakeholders, whose mission is to create middle-class jobs in Central Oregon by recruiting new employers to move to the region, helping entrepreneurs start new, scalable businesses, and working with our businesses that are already here to grow their operations.
CREATES jobs for families
SPARKS demand for real estate
BUILDS traded-sector company
TRADED-SECTOR COMPANY Feeds supply chain
EDCO How growing traded-sector* businesses provides a double dose of local demand for Central Oregon real estate. *By traded-sector, we mean any employer (regardless of size) that sells a majority of their goods and services outside the region and thereby imports new dollars to be circulated within Central Oregon’s economy.
Circulates back to traded-sector business
GROWS demand for real estate
EXPORTS goods and services
IMPORTS dollars from around the world
STIMULATES growth in non-traded sector employment Graphic illustration by Kevin Prieto Information provided by EDCO
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549 SW MILL VIEW WAY, STE 101, BEND November 2014 - The Key 13
By Mike Hollern of Brooks Resources Corporation
For The Bulletin Special Projects
Lessons from History The 1980s were tough times in Central Oregon, but we learned a lot from back then.
O
n a sunny spring day in 1984, a report came to our office that there was a new single family house under construction on the east side of Bend. Those of us who remained working for Brooks Resources at the time got in my car and drove to look at that start, the first positive sign for the real estate market in a long time. During much of the 1970s, Bend’s population had grown from 14,000 people to 17,000 and had seen substantial residential construction. The forest products industry was healthy. Mt. Bachelor was coming of age. Sunriver and Black Butte Ranch were providing regional and national recognition to Central Oregon. Through the good efforts of Sen. Mark Hatfield, Bend was provided substantial federal money to build most of the city’s sewer system in the late 1970s. Bend had an influx of engineers, construction workers and tradesmen who were captivated by our community and decided to relocate here and make Bend home to enjoy all the amenities of the region. Then came the 1980s. 14 November 2014 - The Key
Photo illustration by Kevin Prieto
Paul Volcker, chairman of the Federal Reserve, was determined to stop inflation, which had reached 13.5 percent in 1980, by contracting the money supply and raising interest rates. The prime rate of interest charged by banks to their better customers was 21.5 percent in June 1982. Thirty-year fixed rate mortgages were available to qualified borrowers at 18.5 percent. While these policies did significantly reduce inflation, they created a severe national recession. Here in Bend, our economy was affected by the national recession, but the damage was multiplied by the reduced timber available from the US Forest Service, under stress by efforts to save the Spotted Owl, which led to declining employment in the timber and lumber industry. The engineers and construction workers who had moved to Bend to build the sewer system and houses left when the construction contracts were finished and there were no jobs for them. The 1980s were a bleak economic time in Central Oregon. Many stores on Wall Street were vacant and boarded up. The common
saying at the time was: Will the last person to leave please turn out the lights? So, what did those of us lucky enough to survive the ‘80s learn from our experience? We learned that Central Oregon, much as we love it, is not immune to national and global economic distress; business cycles will continue. We learned we should not mistake good luck for what we may have assumed was our own intellectual genius. We learned to expect volatility and unpredictable events. We learned to finance our businesses to withstand economic cycles and inevitable downturns, remembering that banks and financial institutions can be fair-weather friends. We learned to sweat the details and pay attention to costs, even when times are good. We learned that respecting, communicating and working with employees in good times and bad pays real dividends when the going gets tough. We learned to honor our commitments to our people, our customers and the community as best we could; reputations are of
incredible value and can be destroyed in a heartbeat. For those of us fortunate enough to live in Central Oregon, our confidence in the future has been reinforced by the resilience of our community and our own economic survival. We live in a beautiful part of the world, with unmatched recreation opportunities, great health care systems, a strong art and culture community, excellent and improving educational systems, and a motivated and trained workforce. Our economy is more diversified than it was 30 years ago. We are better prepared for the future because of our trials 30 years ago, but we shouldn’t get too comfortable because unexpected and different surprises are yet to come.
MIKE HOLLERN has lived in Bend since 1965 and has been Chairman of the Board of Brooks Resources Corporation since its founding in 1968.
By Lawnae Hunter of Windermere Central Oregon Real Estate
For The Bulletin Special Projects
Appraisals vs. Assessments P
icture this: You’re looking to purchase a home in Bend, your first home to be exact. You’re excited about all the possibilities. It’s a great location, great schools, walking distance to a grocery store. You’re excitement starts to grow as you are handed an appraisal report. The appraisal talks about the condition of the home, the visible wear-and-tear, and at the bottom, it mentions how much that dream home of yours is worth. It’s right within your budget, so the signing is imminent. At some point, you hear the term tax assessed value, and the appraisal number isn’t the same as the assessed number. The terms — appraisal and assessment — float around in your head and that excitement you had starts to be bombarded by confusion. Rest assured, you are not the only one who gets confused. While these might seem to achieve the same purpose, in reality they are very different. As a real estate property owner or a prospective homeowner, it is important to understand the difference — and when to use which.
Real Estate Appraisal An appraisal is an “opinion of value” on a specific date offered by a licensed appraiser. Appraisers are licensed by the state and approved for different types of appraisals. The role of the appraiser is to provide objective, impartial and unbiased opinion about the value of real property. There are three traditional groups of methodologies for determining value: cost approach, sales comparison and income approach (income & commercial property only). Appraisal reports are used for mortgage
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Still not sure how an assessment works? Confused about your property taxes? The Deschutes County website has created two very helpful tools to assist property owners in understanding and tracking their property assessed value. The “Graph It” icon on the assessor’s page of the county’s website, www. deschutes.org/Assessors-Office.aspx, will show property owners the current
Knowing the Difference
loans, settling estates and divorces, taxation and so on. For residential home purchases, the sales comparison method is commonly used for evaluating recent sales of similar homes within close proximity. The appraiser may adjust final value, of similar sales for different features such as difference in lot size, pools and built in spas, conditions, etc. The buyer pays the appraisal fee, and the new mortgage lender will order the appraisal. The cost approach may also be incorporated into the report. The income appraisal approach is used for apartments or commercial income properties along with the cost and sales methods.
Assessed Value The process of identifying and assigning a value to taxable property is called an assessment; the county assessor administers this process. In Deschutes County, Scot Langton is the assessor. The assessed value of a property shall be the lower of the property’s real market value on the property’s maximum assessed value. These two values can be widely different based on market conditions, but a safeguard is built in the system to prevent the property owner from being assessed taxes on a value higher than the actual market value. It also protects the property owner should the assessed value exceed actual market value. Measure 50 was passed by the Oregon Legislature in 1997. For existing property, the measure limits the annual increase in assessed value to 3 percent. This limitation made predicting future assessed value much simpler
and replaced most tax levies with permanent tax rates. It transformed the system from one primarily based on levies to one primarily based on rates. Measure 50 also defined the real market value as the value the property would sell for on July 1 of the assessment year. For newly constructed property, assessed value is calculated by multiplying the property’s real market value by the ratio of the assessed value of similar properties. For example, if the ratio of assessed to real market value for residential property in the county is 0.8, then the assessed value for a newly built property would be 80 percent of its real market value. If a property owner disagrees with the assessed value, an appeal may be filed Dec. 31 of the tax year. The procedure for appeal is listed on the assessor’s page of the county website.
Sold properties, however, are not re-assessed but continue to carry the established assessed value and are adjusted by a 3 percent increase annually. Now that you know the difference, when should a real estate appraisal or tax assessment be used? Bottom line, if you need to establish the price a property may sell, you will need an appraisal from a licensed appraiser. Current assessed values should not be used to calculate your market values for a sale. LAWNAE HUNTER is the co-owner of Windermere Central Oregon Real Estate and owner of PLUS Property Management. Both companies have offices in Bend and Redmond. Hunter is a 35-year veteran of the real estate business, previously owning a regional five-office company she sold to a Berthshire Hathaway company.
information available on the real market value of their property. Put in your last name and street address, and a graph will be created showing the real market value and maximum assessed value. The “Property Tax Fairy” movie on the homepage of the county website goes one step further to explain how property taxes work. The award-winning, seven-minute video takes an entertaining yet informative look at how property taxes work. November 2014 - The Key 15
By Thomas J. Kemper of Housing Works
$
WHAT IS
AFFORDABLE HOUSING?
According to the U.S. Department of Housing and Urban Development, a household should not pay more than 30% of their income for housing costs, including rent and utilities.
$62,400: Median income in Bend. $1,550: Preferred housing expenses. $31,200: Family of four at 50% of the median income.
$586: Preferred housing expenses.
WHO NEEDS
AFFORDABLE HOUSING? 4,200: Bend households with income below 30% of area median income (AMI) of $18,720. 8,800: Bend households with income below the 50% AMI level of $31,200. 52%: Bend households spending more than 30% of their income on housing expenses. 23%: Bend households spending more than 50% of their income on housing expenses. 1,000: Number of homeless persons in Bend in winter 2013. 10%: Percent of homeless who reported they could not afford rent. Source: 2011 American Community Survey data
THE MARKET TODAY 77%: Percent single family detached
housing in Bend.
5%: Percent single family attached housing. 18%: Percent multifamily housing. 41%: Percent of 32,600 Bend house-
holds who rent.
$166,000: Median home price in
November 2011.*
$325,000: Current median home price.* *Source: Bratton Appraisal Group data
B OTTOM LINE? A family making $75,000 in annual income can afford a home costing
$225,000.
16 November 2014 - The Key
$$$
For The Bulletin Special Projects
Affordability in Central Oregon Housing Works is only one piece of the puzzle in keeping home prices stable.
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s the local housing authority serving Deschutes, Crook and Jefferson counties, Housing Works (the assumed business name of the Central Oregon Regional Housing Authority) has worked to mitigate the housing plight for low-income families in Central Oregon. Its mission is to foster dignity through housing. Established in 1976 as a public corporation helping approximately 125 families through the HUD Section 8 pro-
gram, Housing Works today serves more than 4,000 low-income people in Central Oregon through affordable housing partnerships, grant funding and federal contracts. Housing Works today provides rental subsidy to approximately 1,200 very low-income families through its Housing Choice Voucher (HCV) program administered under a contract with HUD. Housing Works provides $8 million in annual rental assistance for those low income
families throughout Central Oregon. Approximately 62 percent of those households are elderly or disabled, a particularly vulnerable population. The average income level of those households is $12,175. Under the HCV program, Housing Works pays the amount of rent that exceeds 30 percent of the household’s income subject to a maximum cap on permissible rents for the area. On average, Housing Works provides $519 in rental assistance to a household with a voucher. As part of the HCV program, Housing Works has three caseworkers who assist voucher holders work to achieve
economic stability through the Family Self Sufficiency program. FSS programs focus on coaching voucher holders through resume development, credit improvement, job training and placement, personal development and home ownership counseling with the goal of them achieving financial and personal success. The 46 graduates from the FSS program over the last five years report an average increase in annual income of $22,892. Housing Works strives to work with families to achieve independence and economic stability. Most of these households face significant obstacles in their lives: severe disability, elderly with modest social security incomes, a past involving prison time, a childhood of sexual abuse or neglectful parents who are drug addicts, or an unwanted pregnancy are not uncommon. There are many stories of FSS clients who have overcome their barriers through mentorship by FSS caseworkers: the 20-year-old pregnant mom who was abandoned by her husband who was able to stabilize her life with a HCV voucher, later joining the FSS program and is now a licensed insurance agent with her own home; the former prison inmate who overcame substance abuse issues, got a degree and now works for a social service agency
helping others overcome similar obstacles; the single mom who started her own successful business. Housing Works is dedicated to helping low income families and changing lives. As voucher holders achieve success and release their voucher, Housing Works is able to help more families. At the beginning of each year, Housing Works opens its waiting list for qualifying households to sign up for a voucher.
The community must come together to make solving the current affordable housing crisis a priority and take concrete steps to work toward mitigating this severe problem. In 2014, more than 2,500 households completed applications to be on the waiting list. About 5 percent were able to receive vouchers due to the limited number of vouchers Housing Works has under its HUD contract. Housing Works also provides homes for 740 households in its multifamily com-
munities throughout Central Oregon, 384 of which are located in Bend. The authority is breaking ground this month on an additional 40 units as Phase II to its Eastlake Village development in Bend. Most of the Housing Works units are targeted to families making less than 60 percent of AMI (or $37,440 for a family of four). Through its nonprofit affiliate, Families Forward, Housing Works provides an array of services to residents of its properties, including after school and summer programs for children, credit building classes and programs, ready to rent classes and other personal development programs. Families Forward offers individual development accounts (IDA), which provides a $3 match for every $1 saved, creating a resource that can be used for purchasing a home, starting a business or funding education. Housing Works also promotes home ownership through a number of programs. Through the HomeQuest program, Housing Works builds or buys and renovates homes for sale to 80 percent AMI families on an innovative land lease structure. For example, the agency has developed four homes in Northwest Crossing on lots donated to the authority by West Bend
Property Company and sold those homes to 80 percent AMI families on a land lease structure which lowers the cost of the home to the incoming homebuyer. Through its Tutor program, families learn to become owners over a two year period, save money in an IDA account and build credit through the agency’s loan programs. Upon completion of the program, the families can acquire a home with a 20 percent down payment from the proceeds of their matched IDA funds and a refund of a portion of their rent. The acute affordable housing shortage cannot be solved by one player. The community must come together to make solving the current affordable housing crisis a priority and take concrete steps to work toward mitigating this severe problem.
THOMAS J. KEMPER is executive director of Housing Works. Kemper has 25 years of extensive experience in real estate investment, finance and development. With a legal, tax and accounting background, Kemper has developed a strong track record in the financing and development of more than $2 billion in real estate transactions.
November 2014 - The Key 17
By Wendy Adkisson of Cascade Sotheby’s International Realty
For The Bulletin Special Projects
THE LAP OF LUXURY Photo by Kevin Prieto
Lifestyle properties such as farms and ranches are making a comeback.
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he landscape of the luxury real estate market is ever-evolving as the motivations, needs and desires of consumers in this sector continue to change and develop. A majority of affluent consumers are more confident in the strength of the housing market than in previous years. High net-worth consumers are recognizing the critical role real estate plays in building wealth, and they are investing in it. These affluent buyers typically own multiple homes and are looking for a lifestyle property as well as a return on their investment. Location, location, location — it’s of the utmost importance for these buyers. While waterfront ranks at the top of the lifestyle property trends, farm and ranch rates a close second. In Central Oregon, we are able to offer both options, thus luring to our region many of today’s luxury homebuyers. We have our share of luxury homes in neighborhoods from Broken Top to Black Butte Ranch, from Shevlin Commons to Brasada and sprinkled throughout Central Oregon. The luxury home market in Central Oregon is extremely attractive to those 18 November 2014 - The Key
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The luxury real estate market functions and sells far differently compared to the more traditional housing markets. Check out this report for a closer look at what’s what in the lap of luxury: http://issuu.com/audreylwilliams/docs/luxury_lifestyle_report buyers moving here from other areas. A million dollars will buy something spectacular in Central Oregon, with river frontage or mountain views and top of the line finishes and appliances. The same million in San Francisco or San Diego will buy a home that is far more modest. While pricing in the upper end of our market has not seen the increases during the past couple of years that homes in more moderate price ranges have, there has definitely been an increase in interest and sales. At the height of the market in 2006, there were 122 sales in Central Oregon of homes
priced at more than $1 million. That dropped to just 24 sales in 2010. In the past 12 months, we have seen 63 sales, a sure sign of recovery in this market area. Since luxury homes tend to stay on the market longer than other homes, they often require a unique and innovative marketing approach targeted to the affluent consumer. Farm and ranch sales require even more specialization in targeting the buyer capable of and interested in managing a farm or ranch. Oregon often isn’t thought of as a farming or ranching state, but the truth is we are very much a part of that lifestyle. Fresh air, abundant water and wildlife, and unparalleled landscapes make Oregon particularly attractive to this market segment of buyers. Sales in the farm and ranch arena were impacted similarly to the rest of the market during the recession. Brokers in Central Oregon handled only three sales more than $1 million 2010. In the past 12 months, they’ve handled 15 sales more than $1 million all across the state, a tremendous improvement. These sales include parcels from 133 acres to more than 11,000 acres, some with incredible
A million dollars will buy something spectacular in Central Oregon, with river frontage or mountain views and top of the line finishes and appliances. homes and some with the value primarily in the land. When all is said and done, the luxury home market, including farms and ranches, has regained its appeal to consumers from around the world who have decided to call Central Oregon home. WENDY ADKISSON is the Managing Principal Broker for Cascade Sotheby’s International Realty. Also serving as COAR’s 2014 President, Adkisson has been an active part of the real estate industry, primarily in management, since 1985. She has very much enjoyed the opportunity during her tenure to work with some of the most successful professionals in the business.
November 2014 - The Key 19
By Lynne McConnell of NeighborImpact
For The Bulletin Special Projects
Photo by Kevin Prieto
The Dream of Homeownership T
How NeighborImpact’s HomeSource programs can help local families become homeowners.
here’s more to owning a home than achieving part of the American Dream. It’s a decision with enormous implications for someone’s future, and many questions abound. Is now the right time to buy? Am I in a good financial position to own a home? What does it take to become a homeowner? Those are just some of the many questions families grapple with as they consider buying their first home. Homeownership has been shown to be the single best way for individuals to build wealth over the long term — despite the recent downturn and taking into account the economic ups and downs that routinely occur. While NeighborImpact is best known for its food bank program, energy assistance program and Head Start classes, Central Oregon’s largest social-services nonprofit offers an array of programs for all income levels through its HomeSource department. Various workshops and coaching programs provide educational classes and one-on-one coaching that 20 November 2014 - The Key
help individuals and families reach their financial and homeownership goals. “NeighborImpact realizes that owning a home is a huge responsibility,” explained Lynne McConnell, associate director of HomeSource and assets for NeighborImpact. “That’s why we have highly-trained staff who help Central Oregonians determine whether now is the time to rent or buy, and how to build wealth over the long term.”
If an individual isn’t financially ready, coaches will help them position themselves to purchase down the road. Coaches can help develop a savings plan, maximize income, rebuild credit, create a plan to reduce debt and establish a budget. Personalized coaching provides the opportunity for people to know if they are ready to buy a home and how to take the first steps. Additionally, if families are strug-
gling to pay their mortgage or are facing other obstacles, coaches can help determine next steps. HomeSource works with local financial advisors and home-buying professionals to provide a full spectrum of resources for clients of every demographic, from those considering homeownership now to those who may wish to position themselves to buy some day. During the last year, NeighborImpact helped more than 50 people realize homeownership for the first time, facilitating home sales with a value of more than $8.5 million total. With historically low interest rates likely to rise next year, now is a good time to consider homeownership. The Federal Reserve recently announced the end to its bond-buying program which has economists predicting interest rates could begin to rise by next spring or summer. “Obviously, low interest rates equate to a lower monthly mortgage” said McConnell. “The home, which is affordable today, may be out of reach within just a few months.” NeighborImpact counselors are realis-
tic about homeownership. If an individual isn’t financially ready, coaches will help them position themselves to purchase down the road. The goal is to help families build a strong financial foundation and learn how homeownership remains a great investment and a long-term approach for building wealth. All coaching services are free and open to households living in Central Oregon, regardless of income. For more information, contact the NeighborImpact office at 541-323-6567 or email homesource@ neighborimpact.org. LYNNE MCCONNELL has a background in nonprofit management, education and law. She currently serves as NeighborImpact’s Associate Director of HomeSource and Assets in Bend. McConnell previously served as executive director of several nonprofits and has provided consulting services to others. She holds a BA in Sociology from the University of Oregon and a JD from Lewis and Clark. She is experienced in coordinating workshops, trainings and special events.
By Central Oregon Association of REALTORS
For The Bulletin Special Projects
Bend’s Urban Growth
QUANDARY
Why an Urban Growth Boundary solution is critical for the future of Central Oregon.
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ffordable housing is fast becoming the most critical issue in Central Oregon for livability and the future of our economy. Even coming out of the recent economic downturn, Central Oregon’s job growth is still focused on the service sector, especially in Bend. Rental vacancy rates are near zero. Low real estate inventory is increasing real estate prices, which is pricing out young families and single potential homeowners. Building is on the rise due to pent up demand, but not fast enough. All these factors threaten our long-term economic outlook. If housing costs are high and there are scarce available rentals, employers will find it very difficult to attract the talent they need to start their business or relocate here. Basic supply and demand indicates that housing prices will continue to increase as long as demand is high and supply is low. At the end of the third quarter of 2014, the average sales amount increased 8.36 percent in Bend and the total number of homes sold has decreased 1.23 percent since 2013 (see “Real Estate in a Vice” for detailed numbers). With the lack of developable land within Bend’s Urban Growth Boundary (UGB), an even worse housing crunch is looming. Any remaining affordable land and
REAL ESTATE IN A VICE
housing will go to fulfill this demand. Finally, with little land for residential homes, there is even less land for industrial and commercial development, forcing good companies to look outside of Bend.
With the lack of developable land within Bend’s Urban Growth Boundary (UGB), an even worse housing crunch is looming. Cities in Oregon are required to have an adequate 20-year supply of land within their UGB, and the city must show that the land within UGB does not meet that adequate supply. The state of Oregon’s very rigid land-use system dictates where the city should look to expand and requires broad analysis to determine the level of adequate supply. The city of Bend first began this analysis in 2004. After extensive work with
Homes sold and average sales by year through the third quarter.
the county, planning commission and the public, the Bend City Council approved the UGB expansion proposal in January 2009 and it was subsequently approved by Deschutes County in February 2009. In January 2010, the UGB expansion proposal was remanded by the Oregon Department of Land Conservation and Development back to the city. After months of appeals by the Oregon Land Conservation and Development Commission, the city’s proposal was partially approved in November 2009 with the remaining parts remanded back to the city of Bend. The remand outlines what the city of Bend must do before the UGB is approved. This process was not finalized until January 2011. Later that month, the Bend City Council approved a Remand Task Force (RTF) that now consists of all seven city councilors and two planning commissioners. Through a facilitated, collaborative process, the RTF will look at residential lands, economic lands and the boundary line. The RTF is supposed to be completed by the end 2016, and the remand will be submitted to the state once again. Which means that if all goes well, the process still will not be complete for several years. The RTF will have to look at a variety of housing options including multi-fam-
2013
Total Sold: 1,707 Average Sales: $316,593
ily, increased density and single family homes. However, a recent survey by the city of Bend noted a recurring theme among respondents indicating a desire by residents to “keep densities low and lot sizes large in existing neighborhoods.” The community will need to take a strong look at the type of housing it wants and the type of housing that is marketable. Most importantly, the community will need to do so in a way that is responsible, reasonable and moves our economy forward for all Bend’s citizens. Economic growth, employment availability and housing prices will continue to be directly impacted by the UGB until changes are made. An expansion in the UGB will have a positive impact on the livability and overall growth of Central Oregon.
The CENTRAL OREGON ASSOCIATION OF REALTORS (COAR) is your voice for real estate in Central Oregon. COAR is a trade association serving the professional needs of its 1,500+ members. In addition, COAR is dedicated to enhancing and protecting the real estate industry. COAR believes we can build better communities by supporting quality growth, seeking sustainable economies and housing opportunities while protecting a property owner’s ability to own, use, buy and sell property. www. coar.com
2014
Total Sold: 1,686 Average Sales: $343,061 Source: Multiple Listing Service of Central Oregon November 2014 - The Key 21
By John Cal, for The Bulletin Special Projects
Confessions of the
SELF-EMPLOYED
Working from home isn’t for everyone, but there are many in Central Oregon who set up shop in their house.
I
t’s not so much that I’m worried at what my neighbors notice about me,” she said, “but when you’re working from home all day there are some weird things you start to notice about them.” We were having coffee together at Backporch Coffee Roasters midmorning. The early rush on Newport Avenue slows down just after 9 a.m., after the “regular people” have gone to work. Then, slowly at first, at a sporadic pace throughout the morning, the self-employed vagabonds start showing up. People like Courtney Moon, a freelance court reporter, and myself, the writer.
“There’s this one guy,” she continued. “He lives kitty corner to me, and everyday like clockwork between 10:50 and 11, I hear him coughing; and not just a small cough either, but a violent cough, hacking. At first, I was worried that he was dying, but then I heard him again the next morning, and everyday after that.” It’s the sort of thing that happens when you work from home and your schedule is slightly askew from the rest of the world. Everyone else in town happened to notice the fender bender involving the RV from Wyo-
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ming and the Eberhard’s Dairy delivery truck on Third Street that snarled traffic in the morning rush to work, or maybe the sunset on the way home, a pristine shade of amaranth setting over Awbrey Butte. But it’s hard to notice sunsets when you don’t need to leave the house for work, when you don’t need to open a door or window, let alone get out of your pajamas. “I almost never shower in the morning,” I confessed. “Yeah, it’s so much easier to just get it done in the afternoon,” Moon said. “If I remember to shower at all,” she admitted with a guilty laugh. We’re all not like this, of course. Those of you who who have to get changed into respectable clothing and punch in at the same time each morning think it’s all sweat pants and daytime television for us, but we have to stay productive, too, while combatting the distractions of Judge Judy and the temptation of a nap that’s so close at hand. “Though, I do often stay in my sweats and sweatshirt as long as possible, late afternoon if I can,” Moon blurted. “Kids definitely create a rhythm,” Becky Boyd added. “Breakfast has to
“Bend culture is so special. I can’t imagine another place I’d want my kids to grow up. Everyone on my street helps each other out. We have block parties together. We invite each other over for dinner. I don’t know if that could happen if we all had regular jobs.” happen. Dogs have to be walked and fed, and people need to get dressed. I need to get dressed. Teeth. Deodorant. That would indicate that I shower every day. ... I try to shower every day. It starts with ponytail day, then hat day next, and you really don’t want to meet me if I get to wearing braids.” Boyd co-owns Tricycle Creative, a marketing company, and really could work from anywhere, but decided that she didn’t need a dedicated office outside her home. “Honestly though, it’s hard to focus at home,” she said. “There’s laundry or dishes or the dogs are distracting. I mean, my office has a door you can close, but the noises are just different in a house, especially if there are kids. That sort of noise in the background just doesn’t bode well for professional background noise on a business call.”
“How do you take calls then?” I prodded. “Professional calls take place in the master closet because it has a door that can lock from the inside to keep out all the pirates I live with,” she admitted, with that touch of humor about her children and pets. “There are a lot of us around Bend though,” Becky added. “Just on my street is a Realtor, a freelance graphic designer, a contract helicopter pilot, a remote IT guy, and an airline pilot.” Many of us could live anywhere, have lived everywhere. Hawaii at first for me, and Lincoln, Neb., for a while. Moon started court reporting in California, before moving to Bend with her husband, while Boyd was lucky enough to grow up here. “Bend culture is so special,” Boyd continued. “I can’t imagine another
place I’d want my kids to grow up. Everyone on my street helps each other out. We have block parties together. We invite each other over for dinner. I don’t know if that could happen if we all had regular jobs, for me at least ... We all know each other. It’s almost stranger when you have a 9 to 5.” “I don’t know how people do it,” I blurted, in response. “How do regular people run errands or make it to the dentist?” “I have no concept of how people take care of kids or a household or do laundry who don’t have flexible schedules like we do,” Boyd replied. “Think about having to shower EVERY. SINGLE. MORNING,” I added. “Yeah, being a grown up is really hard,” Boyd said with a laugh.
An avid crocheter and origamist, JOHN CAL worked as a baker, head chef, ukuleleist and SnoCat driver before settling into writing. He enjoys filling his time with yoga, postcard writing and collecting bowties. John also collects candy from around the world — he has a 100-plus specimen collection (and counting) — and lives in Bend with his dog, Hank.
November 2014 - The Key 23
24 November 2014 - The Key