At Home With Coldwell Banker Tomlinson - August 2020

NEWSLETTER

ISSUE 106

AUGUST 2020

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WITH COLDWELL BANKER TOMLINSON

Our Transportation System: A Crisis Within A Crisis

I

t seems that we find ourselves in a time of great decisions.

Should schools and businesses be open or closed?

Should the Congress inject more money into the economy, and, if so, how much? Soon we will be asked to decide whether to stick with our current president, or go with another.

These are great decisions, and different people will find different answers, but their importance requires that we all be involved, that we study the issues before deciding, and then be sure to make our decisions known, either to our elected leaders or via the ballot box.

do we in Eastern Washington want our transportation system to be managed? It is the job of Mike Gribner, Region Administrator of the Washington State Dept. of Transportation (WSDOT) to do just that, provided we understand that he acts on instructions from us.

Mike has been waiting for clear, consistent instructions from us for years, and both he and his boss, Roger Millar, our state's Secretary of Transportation, are doing all they can to let us know that years of dithering have led our transportation system to a point of crisis, a crisis just as real as that caused by the novel coronavirus.

Mike Gribner, WSDOT Region Administrator

There is another great issue that we encounter every day and that is calling for a decision that has for too long been either delayed or confused: How

Good news is, though, it is much easier to solve. All it will take is for an informed electorate (us) to get our priorities straight, to decide just where we want to spend our money, and let our elected officials know about it.

At stake in Spokane is an economy that generates ...continued on next page

“our transportation system: a crisis within a crisis,� continued... $30,000,000,000 (that's right; with a "B!") every year, and every single component is inexorably tied to transportation.

It is what allows goods to get to market, buyers to get to sellers, patients to get to doctors....etc.

virus at up to $100,000,000 per month.

He grimaces when he is accused by members of the real estate industry of being "anti-growth" for taking such action as opposing large-scale development along the I-195 corridor before steps are taken to improve its safety, steps which the City of Spokane (i.e. "we") agreed to take more than a decade ago.

In fact, the furtherance of economic prosperity is a prominent part of WSDOT's mission statement. Just ask Councilman Al French whether or not Mike Gribner can be relied upon to support our efforts at economic growth. He seems to feel that without the heroic effort of Gribner and his partners, Amazon would not have come to the West Plains.

When Mike Gribner has cause to worry, we all have cause to worry.

He is worried because, on the one hand, we expect him to be a good steward of the complex and vital system of transportation we own, while, on the other, we deny him the funds to do so. Sometimes we do so intentionally, as when Initiative 976 was passed, which dangled the appealing prospect of lower license tabs at the cost of crippling reductions in WSDOT's revenues. Sometimes, we do it inadvertently, as when we run after the shiny new object of expansion, without first making sure that maintenance of the existing system is properly funded.

The clearest example in our region is the North Spokane Corridor (NSC). A worthy project, no doubt, but one that is funded by bonded (i.e. "borrowed") money, so much money that the interest payments alone consume a huge percentage of WSDOT's budget.

As a result, Gribner has been obliged to cease all repairs on thoroughfares with speed limits under 45 mph. That lets out not only our tree-lined residential cul-de-sacs, but such little-used byways as Division St. and Trent Ave! To be sure, the coronavirus has played its part by ratcheting up the severity of the crisis in our transportation system.

The drastic reduction in miles traveled has meant far less consumption of gasoline, which in turn cuts deeply into the gas tax revenues on which WSDOT depends. The Office of Financial Management estimates the cost of the Covid

So what is to be done? According to Mike Gribner, our first job as responsible citizens is to be well-informed.

The WSDOT website is a great place to start. Beyond that, a call to the regional office at 509-324-6000 will be enough to convince anyone that this is an organization devoted to serving the public and fulfilling its mission to support the safety, security and prosperity the people of Eastern Washington.

The final step, and the one that counts most, is putting your knowledge to work by voting responsibly and insisting to such elected representatives as Senator Andy Billig (www. andybillig.com) and Representative Marcus Riccelli (https:// housedemocrats.wa.gov/Riccelli), both ardent advocates for supporting our transportation system properly, that the system is important to you, and that you are willing to pay for it.

Based on original reporting

Ingredients

(serves six)

1 (14.5 ounce can) of stewed tomatoes, pureed 2 (11.5 ounce cans) of V8 Vegitable Juice 1.5 cup cucumber, peeled and minced ½ cup green bell pepper, minced (white pulp and seeds removed) ½ cup red bell pepper, minced 1/4 cup scallions, minced (including green stalks) 4 TBSP white vinegar 4 TBSP lemon juice 4 cloves of fresh garlic, crushed ½ TSP Tabasco Sauce 1 TBSP extra virgin olive oil Salt and pepper to taste

directions

HOME RECIPES

Ms. Schmidt’s Unequaled Gazpacho

Mix it all up in a stainless steel bowl with a big spoon. Chill well. Sprinkle with garlic croutons and serve

Do You Have What it Takes to Tackle a Fixer-Upper?

Buying a house that needs renovations can be a great way to find a deal, but before you decide to pounce on that tempting offering price, ask yourself these questions: Can Your Budget Accommodate Renovations and Unexpected Costs? Naturally, the draw of a fixer-upper is that you can purchase it for a much lower price than a similarly sized and located move-in ready home. The trick is deciphering exactly how much work the home needs, how much it will cost, and whether the combined renovation/purchase cost of the home will ultimately be more affordable than buying a house that's ready right now. When you’re done, add 15% for the unexpected.

How Much of the Work Can You Handle Yourself?

One way to keep renovation costs down when buying a house is to handle as much of the work as possible yourself, but it's important to be realistic about what projects truly qualify as DIY. If you have experience in the contracting trades or have renovated a home in the past, then you may be able to tackle some of the more costly aspects of renovating. Most people will need to leave the bigger, more costly aspects of renovating to the pros.

How Soon Do You Need to Move In, and Do You Have a Place to Stay? If you have a place to stay and don't need to move into your new home right away, then time may not be a major issue. If you need to move in ASAP, then a fixer-upper probably isn't the right choice when buying a house.

Do You Have Trusted Service Providers? No matter how much or how little of the work you can handle DIY, you'll likely still need contractors, an architect, and other service providers to tackle key tasks. It helps to have people you know and trust – or referrals from trusted sources – when coordinating work on a fixer-upper. Having quality service providers helps keep added costs down, and makes it easier to keep the project on schedule.

Do You Have a Vision for the Home You'd Like to Create? Success with a fixer-upper depends in large part on having a plan and being able to see it through to completion. So it's essential to have a vision of the home that you want to create. If you don't, then buying a move-in ready house may provide more value for your investment.

Coldwell Banker Tomlinson 4102 S Regal St, Suite 201 Spokane, WA 99223

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ISSUE 106 | AUGUST 2020 ©2020 Coldwell Banker Tomlinson. All rights reserved. Each office is independently owned and operated. If you currently have an Agent assisting you with the purchase or sale of property, this is not a solicitation for business.

SPOKANE REAL ESTATE MARKET STATISTICS – Market update july 2020

$330K

average sales price

$302K

median sales price

520

current inventory listings

844

closed sales

Look at those prices! The Median Sale Price (really, the most reliable index of buyers’ activity) is up 2.2% in just one month; 11.7% in the last 12 months, and a whopping 28.3% since July of 2018. In that same period of time, the average family income in Spokane County has risen about 7.7%. On the face of it, it would appear that the average Spokanite couldn't dream of buying a home for the median sale price of $301,509, and that they have become hopelessly priced out of the market.

In July, 2018, interest rates for a conventional loan stood at 4.55%, which means that the housing payment on a median-price home (after 10% down) was $1,416, or 41% of the gross monthly income of a median-income buyer. Today, that buyer would be asked to pay an interest rate of only 2.75%, with no points (That’s right! If you don’t believe me, check with Tony Jones, Directors Mortgage, 509923-3303 ext. 2673), resulting in a monthly payment of $1,480, or 39.4% of their gross monthly But wait, yours are not the only income. eyes watching the prices increase here and around the country. Do you wonder why demand is so The home mortgage industry is high now, despite a coronavirus watching, too, and is powerfully pandemic? Surely one reason is motivated not to let large groups that, despite initial appearances, of borrowers get priced out of the housing is MORE AFFORDABLE market. Accordingly, as prices than it was two years ago! have risen, rates and fees have dropped, with a surprising result.

Article by Larry Lapidus, Realtor®

correction In the previous July issue, there was an error on the page 2 article "COVID impact: North vs. West".

T h e b a r c h a r t s w e re incorrectly labeled in the key, with the red bars indicating 2020 and the blue bars indicating 2019.

The bars in red were meant to indicate 2019 values and the bars in blue were meant to indicate 2020 values.

We apologize for the error in representing the data.

CONTACT ME WITH ANY QUESTIONS OR FOR DETAILED MARKET INFORMATION.