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HBA HOME BUILDING NEWS
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UP FRONT
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FEBRUARY, 2013
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HBApdx.org
Spread The Word
To download a ratesheet for this or any other official HBA publication, visit HBApdx.org
Remodel
Portland
M A G A Z I N E
503.546.9881
snewcombe@commnewspapers.com
WHAT:
Production of the official program for the
2013 Tour of Remodeled Homes is underway. Don’t
miss your opportunity to advertise in this edition!
WHERE:
18,000 copies of will printed and distrib-
uted and made available to the public beginning February 20, 2013 at the Spring
Home & Garden Show, Tour of Remodeled Homes and advertiser locations & show-
rooms. In addition, it will be inserted into the Lake Oswego Review and West Linn
Tidings newspapers two weeks prior to show and included in the online version of
the magazine for the world to see!
LAST CALL:
Reservation deadline is Monday, February 4th
To reserve your ad, contact Schadia Newcome today!
“So rules we might normally
have had a year to get ready
for, now it could be just a few
months,” she said. “That could
be a huge shift in the mortgage
industry.”
Construction builds up
In addition to the increased ac-
tivity relating to financial regula-
tions,
lenders have also begun to
see activity in the construction
space pick up over the past year
or so.
“Construction activity is going
strong if you have lots to build
on,” said John Satterberg, presi-
dent of Community Financial Cor-
poration, a construction lender
with offices in Lake Oswego and
Vancouver, Wash.
Fuelling that are several factors,
including increased demand for
housing now that inventory lev-
els are so low. In addition, histori-
cally low interest rates have made
buying a home muchmore acces-
sible and affordable for people.
“There’s definitely been an im-
provement in the market,” Grasst
said. “Inventory is cleared out,
buyer sentiment is up. The con-
sumer is realizing that the worst
is behind us, and they also see
the purchasing power of today’s
interest rates as a once-in-a-life-
time opportunity.”
Although there has been a
pickup in construction, Grasst
and others noted that the activity
is still a far cry from what it was a
few years ago during the housing
boom.
Springer said she expects con-
struction to continue improving
at a slow pace. She also said the
amount of money available for
spec construction is likely to be
limited—“It will be nowhere near
what is was at the top of the mar-
ket,” she said — and that banks
have returned to more balanced
portfolios, with 5 or 10 percent in
construction as opposed to much
higher percentages that many
had at the height of the market.
“We’re going back to the way it
was in the 90’s, and to me that’s
OK,” Springer said. “Banks were
giving out construction loans on
deals that should have never hap-
pened. A lot were chasing profits,
and by doing that they unbal-
anced their portfolios.”
Springer also said she foresees
a return to the “old days of con-
struction lending,” when build-
ers had to have healthy relation-
ships with their lenders in order
to secure financing, especially
spec financing, which she said is
considered some of the riskiest
financing out there. That means
mid-sized builders will probably
need to focus on building rela-
tionships with, say, two or three
different banks; larger builders
will naturally need even more.
“During the heyday, they didn’t
care,” Springer said. “Not any-
more. It’s not like you can just go
to any bank and walk away with a
barrel full of money. You have to
have solid relationships again.”
Another segment that appears
to be doing better according to
Grasst is the move-up market,
meaning people who are selling
their first homes and buying and
moving into their second ones.
“That was a part of the mar-
ket that we really needed to get
moving, and it has,” he said. “You
can’t just sell entry-level homes
forever.”
Although interest rates are cur-
rently at record lows, and though
the Federal Reserve has hinted
that rates will remain low for the
rest of this year and on into 2014,
nothing is set in stone. As the
economy continues its upward
crawl, those rates are likely to fol-
low suit.
“As the economy starts to im-
prove, themoney that the Fed has
been putting into the market . . .
that’s going to go away,” Springer
said. “Rates are artificially low, but
as the economy improves, we’re
going to see rates increase. They
will ease out of it.”
New regulations and low in-
terest rates notwithstanding, a
stronger overall economy is still
what remains most key to a bet-
ter building, buying and lending
scene.
“That’s the biggest challenge,”
Satterberg said, “just that the
general economy continues to
recover.”
“The key to all of this in the long
term is going to be employment,”
Grasst added. “We are recover-
ing, but until we have greater job
growth, the trajectory that we’re
going at is going to remain mod-
est.”
Changes:
including more rigorous
standards and no risky loans
Continued from page 1
With the generous help of HBA and PROmembers, Goose
Hollow Family Shelter had a happy holiday season.
Thank you to all who helped ‘Pluck the Turkey’ at the
PRO Turkey Fry last month to help the HBF raise money for
the Goose Hollow Family Shelter! With your help we raised
$1,137 with a generous match from our own Steve Frazier.
This check was delivered along with multiple, overflowing
boxes of donated toiletries from the Builders Ball. Thank
you to Steve and all of the HBA and PRO members for your
overwhelming generosity!
Goose Hollow Family
Shelter benefits from
generous members
Luke Morley hands over a check
generously donated by HBA members to
Allie Brucculeri, Director of Volunteers
and Donations at Goose Hollow.
Spread The Word
To register for this event, visit HBApdx.org or call
Sarah at 503-684-1880
Ski Day
WHAT:
Hit the slopes at Mt.
Hood Meadows with the
HBA and the Marion Polk
Building Industry Associa-
tion. Space is limited - so
get registered early!!
WHEN:
Wednesday, Feb-
ruary 6, 2013.
Transportation Schedule:
Two to choose from:
• 7am Bus leaves from HBA,
6pm Arrive back at the HBA or
• 7:30am Bus leaves Bi-Mart parking lot in Damascus
WHERE:
Mt. Hood Meadows
HOWMUCH :
Two packages to choose from:
• $85 Includes transportation, lift tickets, lunch and
snacks on the bus.
• $45 Includes transportation, lunch and snacks on the
bus.
SPONSORED BY
JOHN SATTERBERG,
Community Financial Corp.
Inventory is cleared
out, buyer sentiment
is up. The consumer
is realizing that the
worst is behind us
and...today’s interest
rates are a once-in-a-
lifetime opportunity.