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Old idea for new homes: living in it now, later

Aging experts say current building trends in the Portland area won't allow houses and their owners to grow old together
Thursday, February 03, 2005
DANA TIMS

Two trends, one involving land use and the other an aging population, are heading for a collision that's bound to affect residents in the region's southwest suburbs and beyond.

Locally as well as nationally, the term "aging in place" is popping up more frequently as millions of baby boomers face retirement. The term embraces the notion that retirees, through modifications to their homes, can remain in their residences as they get older.

Those designs hark to the single-level, ranch-style houses that defined suburban construction in the 1950s and '60s. They call for such features as wider, wheelchair-accessible doorways and master bedrooms and laundry facilities on the main floor. The designs not only eliminate stairs -- something some senior citizens find burdensome -- but also require larger footprints than contemporary designs.

Therein lies much of the problem, particularly in the Portland area, where a lack of land for new housing inside the urban growth boundary increasingly dictates that houses must go up, not out.

"More and more of our clients are at their wits' end," said Mark Stewart, a custom-home designer who is moving his offices from Tualatin to Sherwood. "Every square inch matters around here. As a result, people are having to move farther and farther outside Portland if they want any chance to find enough land to accommodate their needs as they get older."

Many large-scale production builders have not made any move to factor "aging in place" into their designs, Stewart said. Much of that has to do with limited land supplies. But the dearth of such designs, at least among production builders, can also be attributed to their need to build as much as they can, as fast as they can, he said.

"The first one who does it will be ahead of everyone else," he said. "Everyone else will be completely missing the boat."

That boat, in terms of sheer size, seems more like an ocean liner. For the next 25 years or so -- a generation's worth of time -- the country will be getting 3 million to 4 million "new" 60-year-olds annually.

Yet many boomers don't appear to have given much thought to housing designs suitable for aging in place, said Kent Burtner, spokesman for Washington County's Disability, Aging and Veteran Services Department.

"What we see are these baby boomers building their starter castles," he said. "What are they going to do if they are incapacitated at some point? Sooner or later they'll wake up to it when houses with aging-in-place amenities are selling like hotcakes."

Some builders finding a niche

Others are giving the matter plenty of thought.

On a parcel adjacent to King City, for example, homebuilder Steve Brown plans to start construction in early 2006 on 30 or more units that will incorporate aging-in-place features.

Brown, who owns Tigard-based Timberland Homes, said he expects at least half of his target market to consist of empty-nest seniors.

"We did a lot of research and determined that there just wasn't much of this type of product out there," he said. "In a world dominated by big production builders, little companies like us have to find a niche or disappear."

Even so, trying to fit ground-floor master bedrooms into houses on lots measuring 40 feet across isn't easy, he said.

"Even 6 inches is a lot of room to try to add to the end or width of a house," Brown said. "There's only so much you can pour into a one-gallon jug."

A variation on that theme is taking shape at Villebois, the planned community under construction at the former Dammasch State Hospital in Wilsonville. Rudy Kadlub, whose Costa Pacific Communities is overseeing development, said a variety of housing styles will allow seniors to move from, say, a two-story detached house to a one-level condominium blocks away.

Of the estimated 2,700 housing units that will be built at Villebois, 400 to 500 units will be condos.

Kadlub said he would like to see more single-level houses in the area for aging in place. However, soaring land values, combined with zoning laws requiring high densities, all but make that prohibitive, he said.

Ranch-style houses gaining value

As a spinoff effect, that shortage is bound to drive up the cost of three- and four-bedroom ranch-style houses -- Kadlub calls them "ramblers" -- in older neighborhoods, he said.

Jim Chapman, president of Tigard-based Legend Homes, agrees that limited lot sizes will continue to force housing styles up and not out. But he took issue with the notion that people will remain in any one house long enough to age there.

"I see the population as being much more mobile than that," he said. "Very seldom do we see people staying in one of our developments for much longer than about five years."

"...Certified Realty, has a slightly different take."

Roy Widing, principal broker for Wilsonville-based Certified Realty, has a slightly different take. More and more, he said, buyers reaching their 50s are showing concern for the floor plan they're getting.

One recent sale, he said, could be completed only because the buyers insisted on a master bedroom on the main floor.

"It's definitely a growing area that builders and remodelers are focusing on," said Kevin Curry, spokesman for the Home Builders Association of Metropolitan Portland. "They know that buyers may not need features like wider doorways right away, but 15 years down the road, they will."

 

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No cooling is in sight for area real estate

After a brief lull, agents and sellers are back in overdrive, though signs nationally suggest slower times ahead
Thursday, August 18, 2005
DANA TIMS

For a couple of days last week, Michael Wilson sensed the strangest thing: a slowdown in the local real estate market.

"Just a little cooling," said Wilson, a partner in West Linn's Foundation Home Realty. "Interest rates bumped up just a little bit, and things seemed to slow down."

Maybe they did. Anything is possible in an overheated market that for more than two years has generated 10 percent to 20 percent annual increases in home values.

But before Wilson and the region's more than 6,000 agents and brokers could ponder taking late-summer vacations, sales picked back up to levels unheard of even a few years ago.

"All I know right now is that it's heating back up again," Wilson said. "And despite all the activity we've been seeing for quite a while now, there's still no end in sight."

"...Roy Widing, a broker with Certified Realty in Wilsonville, has advice for buyers"

Throughout the southwest suburbs, continuing low interest rates, a record low inventory of salable houses and demand intensified by new residents are keeping the real estate market on a torrid pace.

In Portland and elsewhere, the heat of the market has experts and analysts debating whether that pace can be maintained. Some say that such spiraling levels of home values can't go on forever and that the bubble is likely to burst -- or at least start losing air -- sooner than later.

Nationally, there are some indication that could be occurring. Various reports are saying that the biggest and most experienced real estate investors are selling more properties than they are buying.

An upward surge in interest rates might do as much as anything to help pop the bubble. But with interest rates on 30-year mortgages still hovering around 5.8 percent, it would take a giant leap to make much of a dent in sales, local agents and brokers say.

"We're definitely going to see some increases in the rates," said Adelle Jenike, an agent with Re/Max in Lake Oswego. "But the size of the increase would have to be almost unimaginable for it to really influence the market we're seeing right now."

Sellers have the edge

In Jenike's view, low inventories of houses on the market continue to give sellers the edge over buyers. The latest report issued by the Regional Multiple Listings Service put the inventory at 1.5 months. Assuming the current rate of sales, that means the area's entire inventory of homes for sale would be exhausted in about six weeks.

In January, by comparison, the housing inventory stood at 3.4 months -- still very low by historical standards.

"But it's still a very good time to buy," she said, adding she has seen little evidence that sellers are increasing their asking prices beyond reason to take advantage of the inventory shortage. "It's the best market I've ever seen."

Eric Kvernland, owner and broker with Prestige Properties in Tigard, has his own words to describe market conditions. "It's just getting crazier and crazier. It can't go on like this forever."

Kvernland's company specializes in retirement properties, focusing mainly on the retirement communities of King City and Summerfield. The biggest change he's seen among his clients, he said, is their increasing reliance on securing real estate loans to buy houses.

"Traditionally, we did 80 percent cash transactions," he said. "But more and more, people are getting loans." Kvernland attributed the change to two reasons.

The first is the desire of home-buying senior citizens to take advantage of interest rates they probably haven't seen before in their lifetime.

The second stems from record-high house prices. Unless senior citizens want to tap retirement savings, he said, they must borrow to pay prices that are up 50 percent or more over even three or four years ago.

Advice for buyers: hurry

Roy Widing, a broker with Certified Realty in Wilsonville, has advice for buyers: Be prepared to step on the gas the second a suitable property hits the market.

"It's just vicious out there," he said. "It's not quite as bad as California yet, but unless you have everything lined up beforehand, you are more than likely going to find yourself out of luck."

Widing is working with a buyer who is preapproved for a loan that should be sufficient to cover almost 100 percent of the purchase price. But bidding wars typical of the current market have bumped the prospective buyer out of the running in the half-dozen houses he's bid on.

"If he wanted to live 40, 50, even 60 miles outside of Portland, this would be all wrapped up by now," Widing said. "But for areas around the metro region, things just remain incredibly hot."