GEARED FOR METHOW LIVING

‘Super minimal’ house is designed for recreation and relaxation

BY DON NELSON

When it came to buying land and building a place in the Methow Valley, Heidi Durham and Leslie Garrard had their parameters firmly in place.

They love the Methow. They relentlessly recreate here, in all seasons, and require a ton of “gear” for their activities. They intend to retire here some day. In the meantime, the Seattle couple needed a practical and personable space to hang out in with their dog and son. But they couldn’t afford a full-size house just yet, so they decided to inhabit the valley in stages.

With the help of a perceptive real estate agent, creative architect and detail-driven builder, Durham and Garrard have come up with the ideal solution: a 700-square-foot, self-contained jewel that they call the “Gear Studio,” situated in a meadow off of Highway 20 a bit east of the Mazama Junction.

In the compact but bright, efficient space, the gear is the décor. Some of the house’s dimensions were actually determined by the length of their paddle boards, which are mounted on one wall. Climbing equipment, skis, bicycles and kayaks are neatly hung from the walls or stowed in every nook and cranny. “The gear is the art,” Durham said.

The airy, well-lighted space also includes a small living/dining area, free-standing wood stove, work counter, full bath, sauna and outdoor shower on the first level. A full-size garage door rolls up to open the space to the outdoors.

In the loft, reached via a steep

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“ship’s ladder” with rock-climb- ing handholds mounted on the wall for stability, are a bedroom, kitchenette and pantry/storage/ laundry area that is built in un- der the roofline. The up-valley views from the second level are expansive.

There is also a detached twovehicle carport with a storage shed that holds more gear and home-keeping stuff. The little house was finished in May 2019.

SPECIAL SPOT

Garrard and Durham, who have been together for about 10 years, have spent much of that time in the valley, which they call their “favorite place on the planet.”

“It’s our special spot for win- ter and summer play,” Garrard said. “It’s absolutely captivating. As Seattle residents, we decided, ‘we’ve got to get land here. We’ve got to retire here.’”

That aspiration started with a property search, aided by Ina Clark of Mountain to River Realty in Winthrop. “Ina is very knowl- edgeable and helped us assess various areas,” Garrard said.

“We wanted lots of sun, proximity to the [Mazama] store, and to be able to ski and bike from our front door,” Durham said.

“We get spiritual joy from being outside. We like the quiet and re- pose, we love simple things like reading and drinking coffee,” Garrard added.

“When we saw this site, we loved it … it was perfect,” Garrard said. They purchased the 5-acre site in 2017, and started looking for an architect. The couple ad- opted the “less is more” mantra in thinking about their Methow retreat, Durham said. “Our ap- proach was, what can we do now?”

“We were just looking for peo- ple we were impressed with,” Durham continued. That includ- ed Johnston Architects, which has designed many Methow Val- ley homes.

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After engaging the Johnston firm, Durham and Garrard showed principal Ray Johnston some images along the lines of what they were hoping for. They wanted it to be “super minimal and open,” with lots of light. The couple even provided a list of the gear they wanted to be able to store. Johnston took it from there.

“We loved working with Ray [Johnston],” Garrard said. “His first concept was ‘it’ … beyond our wildest dreams.”

Johnston said that his firm actually designed three buildings including a future full-size house. The Gear Studio, he said was conceived as “compact and affordable … a place to sleep, store your gear and participate in the valley.” The Gear Studio was contemplated early on as possibly a garage, Johnston said. The garage door remained part of the plan because loading and unloading kayaks and such is easier through a large opening. And, Johnston said, “the need for a carport became apparent.”

Durham and Garrard also had a great relationship with builder Chris Charters, who they describe as an excellent craftsman, communicator and good friend. He took special care with finishes and materials, such as

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painstakingly matching separate “A grade,” solid-core plywood wall panels to look like there were contiguous.

“He understood exactly what we wanted to do,” Garrard said of Charters. “Everything was done with thought. It was not a stressful process. It was collaborative in all the decisions, even the small ones.”

“Chris did a great job,” Johnston agreed, especially with letting the owners know what the final finishes would look like and creating “a tailored finish on the inside.”

Durham is a nonprofit executive director in Seattle. Garrard is part of a corporate leadership team, specializing in business growth. Their 12-year-old son, Finn, spends time at the cabin, as does their rescued greyhound Eldo. At some point, the couple intends to build a larger home. “We have to plan our building process,” Durham said. For now, the Gear Studio is a perfect alternative to full-size living. 

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A gap in the housing cycle

The Methow needs more affordable rental options

BY RAY JOHNSTON

Ahealthy town has several essential ingredients: There are jobs derived from the production or provision of something that is desired; there are work places; and there is accessible housing. The health of a community must be dynamic, shifting and evolving over time to meet new conditions.

The Methow Valley is adapting well. We are adopting new technology while adding infrastructure and amenities that help make our community resilient. We are taking care of our elders, our environment and the vulnerable among us. We are also responding, in true Methow spirit, to the housing crisis that permeates our society, both urban and rural.

The Methow Housing Trust is doing important work in making home ownership available to those who qualify. But that is only one response to a challenge that requires numerous responses — as many responses as there are different lifestyles, phases of life and personal circumstances among the people who choose to live and thrive here in the valley.

As a community, we are adapting successfully to a changing business environment. We have developed a regional economy strengthened by tourism and recreation, supported by a realignment of our use and stewardship of natural resources. Local

entrepreneurs introduce us to new products and processes on the horizon that support our goals, from new kinds of forest products, to rediscovered crop species and animal husbandry. We are attuned to cycles: economic, generational and natural. However, one cycle that we need to address more attentively is the housing cycle — not necessarily the supply/demand/cost cycle, but the life cycle of our community’s varying housing needs.

When young people, either raised in the Methow Valley or from afar, come here to settle down they strengthen our community in a multitude of ways. Taking advantage of professional opportunities that weren’t available to their parents or grandparents, such as working

remotely via the internet or establishing new businesses and services that did not exist a generation ago, they are diversifying our economy and setting our region up for continued health.

WHAT’S MISSING

When folks near retirement age relocate here and still work remotely, they also add to the local economy and our social infrastructure. Among both groups there remains a lot of mobility. Younger people want flexibility to travel and explore, older people often want to downsize, and both may not want the responsibility of land and personal property. What is missing in our current housing lifecycle are quality rental homes: houses, apartments or other configurations: duplexes, triplexes and

townhouses.

A healthy community offers options in all things, including housing. To strengthen the health of the Methow, we must offer more housing diversity. Frequently, the rental properties that do exist in the valley are siphoned off by the lucrative vacation rental industry. Apartments have not been part of previous building cycles, so very few of them exist in the Methow, so the workers drawn here by our burgeoning economy, interested in establishing themselves in the valley, have limited housing options. If they are fortunate, they may have friends who offer them opportunities to rent something that has not already been scooped up by the short-term rental market. More seasoned newcomers may find housing to purchase, but sometimes they would rather begin by renting, trying out the Methow Valley lifestyle before committing to owning a home. A healthy community offers options in all things, including housing. To strengthen the health of the Methow, we must offer more housing diversity so that new residents can find a place to call home, retiring elders can find a rental properties that allow aging in place and those whose lives change unexpectedly can look to rental properties to bridge the gap to a new chapter in life.

Rental housing is a part of all communities, not only cities or larger towns. More in-town options for denser living will allow us to keep our treasured rural character elsewhere. It makes clear economic sense to provide quality rental housing as part of the Methow Valley lifestyle we offer prospective residents and visitors who want to come to work, play and contribute to our communities.

MEETING THE CHALLENGE What is hindering the development of this missing link in the housing cycle? Could it be relatively low rental rates and thus a low rate of return? The misconception that there is not enough of a demand for rentals? Are potential developers of rental properties inhibited by a lack of investment capital?

The Methow has always found unique and imaginative ways to meet challenges head on, so taking a nonprofit approach to this problem might produce a solution and fill the housing gap. Creating subsidies to offset the costs of market-rate properties for lower-income residents is one option. Enticing developers to build more rental properties with tax incentives or lower-interest financing may produce an influx of housing in a shorter amount of time.

Conducting a market study will likely reveal that the next decade will bring higher paying jobs to the valley, bringing higher rent potentials and encouraging additional development in that direction. Perhaps simplified Detached Accessory Dwelling Unit designs would promote multiple small homes on more rural sites.

The hope is that one, or many, of these concepts help bring the valley the essential ingredient of rental housing, completing the housing life cycle and creating a sustainable and healthy community, culture and economic environment in the Methow. 

Ray Johnston is a principal in Seattle-based Johnston Architects, which has designed many Methow Valley Homes.

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Trending upward

The valley’s real estate market shifts towards higher prices

BY ANN MCCREARY

The market for homes in the Methow Valley experienced what one long-time Realtor described as a “seismic shift” in 2019, with record spending on houses in the highest price brackets.

Home sales overall soared to a new record of $55 million in 2019, “surpassing the powerful 2018 home market by nearly $2 million,” said Dave Thomsen of Coldwell Banker Winthrop Realty. But it’s not the increase in overall sales that distinguished last year’s market, it’s where those increases occurred, Thomsen said.

“What’s really interesting … is the fundamental shift which took place in 2019 in the types of homes purchased and sold,” Thomsen said. “Sales in the upper-price tiers triggered a seismic shift. No longer were homes sold in the $300,000 to $400,000 range the center of the market, as was the case for years,” he said. “Suddenly, revenues from home sales above $500,000 accounted for nearly half of all monies generated in the home sector — $26 million. The $26 million figure marks a 129% increase over spending in the same price range in 2018,” Thomsen said.

Thomsen, senior managing broker and branch manager of Coldwell Banker Winthrop Reality, presented his findings in an

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annual Methow Valley real estate report that he has compiled for more than a decade. He uses statistics from the Northwest Multiple Listing Service and other property sales information to develop the report on real estate activity from Mazama to the bottom of the valley at Highway 97.

In 2019, a total of 134 houses sold, according to the report. Only 37 were in the over- $500,000 range, but those sales generated almost half of the total dollar volume, Thomsen said. The average price of those homes was more than $700,000. The rest of the home market, involving sales at or below $500,000, generated $29 million from 97 home sales. Those properties sold for an average of nearly $300,000, Thomsen said.

“The price point of $300,000 and under will continue to disappear as construction costs and appreciation rates rise,” said Anne Eckmann, designated broker/owner of Blue Sky Real Estate. “Historically low interest rates, around 3.7%, fuel the ability of buyers to be able to afford homes at a higher price point.” As a result of the shift toward more expensive homes, the median price of homes in the Methow Valley hit a historic high of $360,000, according to the Northwest Multiple Listing Service. That compares to $318,000 in 2018, $322,500 in 2017 and $270,000 in 2016.

That’s cause for concern for Methow Valley residents hoping to purchase a home, Eckmann said. “There were 38 fewer sales under $350,000 in 2019. If you look at $400,000 and over, there were 23 more. What that means is, that’s the affordable housing,” Eckmann said. Some locals are going to say, ‘I can’t afford a $350,000 house.’”

LOW HOME INVENTORY Last year’s market was driven by a scarcity of available houses, as inventory of homes listed for sale hit historic lows, and remained there at the beginning of 2020, local Realtors said.

“In terms of prices ranges of homes that sold, $200,000 to $400,000 is still the hottest segment of the market in terms of number of transactions,” said Brian Colin, managing broker/ owner of Mountain to River Realty. “But we did see a big decrease

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in the number of sales in this range — 53 sales in 2019 compared to 88 in 2018,” Colin said. “I think that this was due to inventory versus a true slowing in this segment.”

“Had a greater inventory of homes been available in the $200,000 to $400,000 range, it’s likely they would have sold, also,” said Thomsen. “But fewer properties were available in those categories and buyers stepped up to buying superior properties at higher prices and spending more for properties that previously and recently sold for noticeably less money.”

“The lack of inventory is across all price points,” Eckmann said. “Lack of inventory is the classic supply-and-demand economic scenario. As resources become scarce, pricing rises.”

Statistics from the Northwest Multiple Listing Service show a consistent decline in active home listings in the Methow Valley over the past four years. On June 30 (generally one of the busiest times for the real estate market), the number of listings were 139 in 2016, 108 in 2017, 90 in 2018 and 77 in 2019. On Dec. 31 of each year, the listings were 81 in 2016, 65 in 2017, 65 in 2018 and only 30 in 2019.

Rising costs of new home construction has influenced the market for existing homes, making them comparatively more affordable and attractive, said Patsy Rowland, designated broker/owner of Winthrop Star Properties. “Building materials have increased over the years. If you find something already built in a location and price you like,

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you most likely can’t replace it” at a comparable price by building a new home, Rowland said.

Building costs have put a damper on new spec home construction, despite the demand for homes in the Methow Valley, said Bob Monetta, designated broker/ owner of Windermere Real Estate. He estimated building costs at $250-$300 per square foot. “Spec builders aren’t building. We don’t have a lot of specs like 10 or 15 years ago,” he said.

SMALLER AND CLOSER TO TOWN

Local Realtors say a growing number of homebuyers are looking for locations close to or within the towns of Winthrop, Twisp and Mazama. “In terms of area that seemed to be the most desirable, that would have to be Twisp, Winthrop and Mazama,” Colin said. “Both Twisp and Winthrop have seen an increase in people that want to be within town limits. Carlton and Methow were less active.”

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“Some of the changes can be attributed to a demographic shift,” Thomsen said. “Baby boomers, once the decisive Methow market leaders, largely favored larger acreage with more privacy, outside town. Many of today’s younger buyers prefer the ease and convenience of smaller properties located closer to or in town. Many of today’s buyers come to play and have fun; the idea of working acreage is less appealing.”

In addition to sales trending toward smaller properties, more buyers are looking for smaller dwellings, Realtors say.

“The ideal home has gotten smaller in the last couple of years, with a lot of people looking for something in the 1,300-square-foot range; two bedrooms, two bathrooms with a carport or garage,” Colin said. Current Methow Valley residents who bought property here years ago are also part of that trend, said Monetta. “People are downsizing now, so you’re looking at a lot of bigger houses that come onto the market.” He recently listed a house with 20 acres on a hillside between Twisp and Winthrop that the owners purchased 25 years ago. “They are downsizing. They want to find a house in Twisp. Twisp is a going spot. There are not enough affordable properties for sale there,” Monetta said.

Prospective homebuyers are also looking for another feature as they consider purchasing a house in the Methow Valley — access to reliable, high-speed internet, said Rowland.

“It’s one of the first things that comes up when I work with a buyer. More and more people really need high-speed internet access at home. Even if they are getting a part-time home, they’ve got to be able to access their records and work,” Rowland said.

A new study of barriers to broadband internet access in the Methow Valley was launched in February this year through

a state economic revitalization grant. Consultants hired to conduct the study, facilitated through TwispWorks, will develop comprehensive plans to bring reliable broadband services throughout the valley when the study is completed later this year.

The combined dollar volume of all property sold in the Methow Valley — including land and commercial properties — fell last year by about 16%, according to Thomsen’s market report. He noted that the figures are skewed because in 2018, six large ranches sold for a total of almost $12 million. Although the dollar volume

of land sales fell by almost $4 million in 2019, it still compares favorably to past years, Thomsen said.

Realtors were generally optimistic about a strong real estate market continuing through 2020, although they said that will depend on the availability of homes to buy, and the strength of the national economy. “If we see a good increase in inventory this spring, we have the potential to have one of the most active years ever,” Colin said.  “The ideal home has gotten smaller in the last couple of years, with a lot of people looking for something in the 1,300-squarefoot range.” Brian Colin, managing broker/ owner of Mountain to River Realty

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