Real Estate Market is Spooky for Buyers

Spooky because inventory under $500k is tight and competitive offers are lurking around every corner waiting to outbid the unsuspecting buyer. Boo! Buyers should relax however as the holiday season is ahead and that tends to soften things up a bit. Not that pricing is likely to soften but many buyers stop looking and that can take the edge off a bit allowing buyers and opportunity to get their offer accepted more readily.

Locally the median price of a home in Clark County has breeched the the $400k mark pushing up towards $410k. Analysts are suggested a fairly robust 6-8% growth over the next 12 months. Despite the crazy conditions for buyers real estate is still a strong proposition in Clark County so be patient buyers, your time will come :)

Will Vancouver Answer the Call?

The phone is ringing... opportunity is calling... will our fair city pick up? Vancouver has an amazing opportunity right now for both jobs and residents across the spectrum of suburbia and urbanites alike. Our neighbor to the south has been shedding people to the suburbs for several years and this year other issues are pushing residents out in droves. Meanwhile urbanites in Portland are now witnessing the rise of the Vancouver urban city scene and for the first time, maybe ever, they have an alternative to Portland's "big city" neighborhoods like the Pearl and South Waterfront.

Now let's be clear, Vancouver USA will not replace Portland as the center of the metro area anytime soon and probably not ever. But that city has really set itself up to attract a specific type of resident. Basically those looking for the walk, bike, and transit only lifestyle. Vancouver can appeal to some of those people but also to those that still want to at least own a vehicle and travel independently when they want to. Portland's lackluster effort on the city highways and freeways is a clear indicator that travel by car will not improve anytime soon.

Vancouver finds itself in a prime spot to attract both residents and employers looking for tax savings and a more traditional lifestyle for their workers should those workers choose. But they won't have to alienate the employees that want that sustainable walkable neighborhood. Vancouver has a downtown and waterfront area that still has usable land, and a council that is considered to be one of the easiest for developers to work with. A pro-business environment without sacrificing the common sense approach to a sustainable community.

Our city needs to go get em' so to speak. Developers and business leaders are sometimes operating in a bubble and if Vancouver USA is outside the bubble our local leaders may need to penetrate their market with advertising and committees designed to get the word out.

COVID-19 will pass and we will get back to a more normal pattern and our city needs to take advantage of our amazing setup to grab both residents and employers which help all of us enjoy a better lifestyle with a stronger economy and higher wages. 

For Portland they love having a workforce based in Vancouver, it helps pad their taxes with non-resident income. It is literally free money for them. But more and more Vancouver residents are seeking jobs on OUR side of the river as they grow weary of Oregon's egregious taxation without representation scheme. Furthermore Portland's tolling scheme is clearly aimed at Clark County commuters. Vancouver needs to hyper focus on employers, large employers that want their employees to have a great community to live in, with an easy commute, and low taxes. Vancouver is that community and we have the commercial, industrial and residential base to support whatever an employer needs.

Here's to a great 2021 and beyond.

Tower Cranes Mean Real Estate and Construction on the Move

Even under the drag of a worldwide pandemic, two more tower cranes have popped up on the Vancouver skyline. A couple of others came down this year so we are back to four cranes Downtown. Tower cranes have become rather symbolic of success. The types of projects that are erected underneath these behemoth towers are typically large scale, tall, and urban projects that cost tens of millions to construct.

These projects like other large scale developments produce hundreds of jobs and transform property values leading to more property tax revenue for the local government with out raising taxes on the whole. 

The City of Vancouver purchased the four city blocks formally occupied by the Lucky Lager Brewery Complex. The buildings were demolished and the blocks sat bare. No tax revenue was coming in because the city owned them. Now the first block became Heritage Place East and another adjacent block that had a few older single family homes became Heritage Place West. Lets say the value of that two block property went from roughly a million dollars in 1996 to around $25 million in 2000 when the project completed. The state and local government are now collecting property taxes on a fully developed area that is 25 times more valuable. Next was the Vancouver Center on the two blocks flanking the east side of the park. A much larger scale multi tower project went in there created and even larger tax boost. Now the final block the so called Block Ten has been sold for roughly $3 million to Holland Partner Group to be built out as a two tower mid-rise office and housing complex. The city will go from net zero to property taxes based on values that will almost certain exceed $50 million when complete.

Some people get upset when local government issue deferments on property taxes over a 8-10 year period, but the local government is playing the long game. Yes they will get less taxes early on, but still MORE taxes than they were getting prior to the development, then a HUGE boost when the incentives expire. That $3 million empty lot is about to become a $50+ million urban complex.  

All of this construction creates jobs, high paying skilled labor jobs! Most of that money stays in the local economy helping us all live better and more enriching lives. When you go Downtown, don't fret over the cranes, rejoice in the cranes, mega-investors are pouring money into our home, our
city, our economy. With the bludgeoning blows of COVID 19, we need all the investment we can get.