Ted Mason's Signature Blog

Trip to Japan resets perspectives

2009-12-21T11:30:00.000-08:00

In October I had the opportunity to travel a very long distance to visit my daughter and son-in-law. My son-in-law is serving in the US military in northern Japan, a country to which I have traveled several times. It was great to be back in Japan - speaking the language, eating the food, enjoying the scenery. Of course the best part was spending time with family.

I emphasize 'long distance' because by being completely removed from Idaho and the busy day-to-day I was able to gain some respect for and perspective on the remarkable changes that have taken place in home building in Idaho. The most remarkable change is the reset in the cost of everything that makes up a new home. From lot prices to granite countertops to interest rates - everything costs less... a lot less.

The buzz seems to be all about REO, foreclosed, distressed, but the real story is how new homes are competitive with all of these! Take for example our Covington plan. This is a highly sought after plan we build that has evolved for over the past 15 years. The base price to build a Covington today is $117,879. Less than ever and with better technology (Energy Star, etc.). The smart buyers get it. We are signing contracts to build new homes for the smartest of the smart. They get it!

Reset. That's what came to me as I flew 10,000 miles to and from Japan. Dramatic changes in costs, resulting in new and better homes for Idahoans at dramatically reset prices, all MADE IN AMERICA!

2009-11-27T11:17:00.000-08:00

We are pleased to be an Energy Star builder. We recently made this video with Aldis Garsvo of Mountain Post--Digital Imaging, LLC in Kuna and we think it came out well.

Home Central offers greatest variety to buyers

2009-09-23T15:20:00.000-07:00

Changing real estate market leads local builder to offer “lot shopping” to home buyers

Ted Mason Signature Home Central catalogs all vacant lots in Ada and Canyon counties, allowing buyers to have a Ted Mason home in the site of their choosing

Ever find the exact home you want, but wish you could put it somewhere else?

Ted Mason Signature Homes thinks it’s found the answer. At its new Home Central, the company has mapped the location of every buildable vacant lot in Ada and Canyon counties. If you find a lot you like, there’s a good chance Mason will be able to build you a home there.

“Home Central allows us to bring the combination of location and builder that the buyer most wants,” said Dan Clark, development director for Ted Mason Signature Homes. “We want to give people the ability to customize the location of their home and pick the location that appeals to them most.”

It’s always been common for builders to build in different subdivisions, but Home Central is intended to shift the decision-making process by to customers by allowing them to put the house they want on the lot they want.

Upheaval in the real estate markets is also opening opportunities. While construction costs stay fairly constant between builders, land prices have been falling, making it easier for people to shop for lots.

“More than ever, people have opportunity to choose their lot, because land is negotiable and many of the lots are in a distressed situation,” Clark said.

Home Central consists of three homes next to each other in Ted Mason’s Hightower subdivision. The main office, at 6150 Saguaro Hills Way, is a sales office, staffed between 11 a.m. and 6 p.m., while the two homes next door are models to give people an idea of how Ted Mason homes can look and feel. All the floor plans are on display, along with photos, drawings and pricing information. The floor plans are exclusive to the company, designed by Ted himself.

But the key feature is a 3-foot-by-6-foot map of the valley showing where available lots are located. While the information on the map isn’t proprietary, it is assembled with considerable effort and must be updated regularly. The map includes a list of the characteristics of the lots, including dimensions.

Some developers won’t allow other builders to build on their lots, but Clark thinks there’s a chance the current economy will pressure them to open up, which will add to the attraction of Home Central.

“In this economy, a lot of developers would be happy just to sell a lot and get it out of their inventory, even if they’re not chosen to build on it,” Clark said. “There is a huge oversupply of lots and that opens up opportunities for all builders.”

Clark estimated that as of early July, there were about 4,000 buildable lots in Ada and Canyon counties – enough for at least a couple of years.

“The Ted Mason name and brand is driving the potential for Home Central,” Clark said. “Many people want the quality, reputation and three-year warranty of a Ted Mason home, but they want it in a non-Ted Mason subdivision.”

Ted Mason Signature Homes to host live music, singles get-together at Ambleside in Boise Saturday

2009-07-22T16:07:00.000-07:00

July 22, 2009

For more information:
Barbara Johncox, 407-0759
Facebook: http://groups.to/tedmasonhomes
Twitter: @tedmasonhomes
Web www.tedmason.com

The Fleet Street Klezmer Band will perform this Saturday, July 25th from 7:00pm until 10:00pm at Ambleside Townhouse Community, off Fairview at Steelwood Dr. Look for the cool two story English -styled townhouses.

Music Under the Stars is made possible by the generous sponsorship of Ted Mason Signature Homes, and Ambleside, a English Village townhouse community in the heart of Boise, doff Fairview at Steelwood. TMSH invites listeners to bring your lawn chairs, blankets and food and drinks (no alcohol please) and listen to this exciting music.

This is part of another project at Ambleside. From 4pm-6:30pm Ambleside is hosting Singles Play date where there will be access to the clubhouse, the swimming pool, and the village green area with badminton set up. Singles are invited to stay for Music Under the Stars, which is open to everyone.

Klezmer music drawing on centuries-old Jewish traditions, also incorporates various sounds of music from European and international traditions, including Roma (gypsy) music, Eastern European folk music (particularly Russian music), French Cafe music and early jazz. In different regions of Eastern and Central Europe, klezmer developed slightly differently, leading to an exciting range of subgenres.

Klezmer music also is intended to replicate the human voice, including sounds of crying, wailing and laughing. It is generally the violin's job to do this imitation. Often, a klezmer band will include a fiddle, a bass or cello, a clarinet and a drum.

Don't miss family movie night in Kuna Friday, July 17

2009-07-07T13:03:00.000-07:00

Kuna is a great town and we are happy to be there with our Walnut Creek development. Hoping to start a new tradition, we are hosting the Kuna Family Movie Night starting Friday, July 17.

The first movie, “Journey to the Center of The Earth” in 3-D, will be shown at 9:15 p.m. at Kuna City Park, following live music. Free 3-D glasses will be available to the first 300 people. Another movie is scheduled for Saturday, Aug. 15 and other dates in August, September and October will be announced. All events are free to the public.

The idea for Kuna Family Movie Night began when I realized there were other valley movie nights, but none in Kuna and I thought it would be good to bring people together on nice evenings to enjoy a family event in Kuna. I like holding community events.

On June 20, we held a grand opening garden party for the Ambleside townhome development in Boise that attracted about 500 people over the course of the day. Last September, we held Family Fun Day at Walnut Creek, complete with bouncy jumps, kids games, live music, prizes, hosted ice cream truck and lunch. The down turn in the housing market has affected us, but we have never stopped thinking about Kuna.

From 7 p.m. until 9 p.m. there will be live music. Parents or guardians must attend with young children and they are encouraged to bring lawn chairs, sleeping bags, pillows and ice chests for food.

I am also inviting local non-profits, clubs, school groups and restaurants to set up concession or other tables to fund raise during the event. Food vendors will need to get permits via City Hall. We are also offering sponsorship opportunities for local businesses. Businesses would get their name on the movie screen, in newspaper ads, and any other marketing in association with the Kuna Family Movie Night. For more information call Barbara Miller Johncox at 407-0759.

Ambleside grand opening a big success!

2009-07-06T14:22:00.000-07:00

The forecast called for rain all day, but it turned out to be a beautiful day for the Ambleside Grand Opening Garden Party on Saturday, June 20. We had about 500 people show up during the course of the day. The Boise Hawks ballplayers and Humphrey the Hawk were there from 10 a.m.to 4 p.m. handing out free game tickets, while the Garden Party want from 4 p.m. to 8 p.m.

Thanks to everyone who came out to see Ambleside. Designing a townhome development along the lines of an English village is a new concept for Boise and we are pleased at its reception so far.

Just imagine how this will look when lined with rows of townhomes with rural English design.

So far, just one townhome building and the clubhouse have been built, but we're working on it.

The Glory Brass Band provided music.

Parking assistants were eager to help.

Coleen Hall was hired to class the place up and show how much fun it is to live at Ambleside. A tough job, but someone's got to do it!

No doubt about it, Ambleside is great for relaxing.

More people enjoying the great food of Chef Cordel Knight.

Myself and Sherry McKibben, the architect who designed Ambleside

A number of dignitaries came to the grand opening. At the ribbon cutting, L to R: two bankers involved in Ambleside; Boise City Councilmember Marianne Jordan; Sherry McKibben and Dave Cooper; Boise City Councilmember Elaine Clegg.

Ada County Commissioner Rick Yzaguirre and his wife also came to the grand opening.

Interior designers also did a great job.

We specialize in smaller, high-amenity homes and this Ambleside kitchen shows it.

2009-06-09T13:42:00.000-07:00

Ambleside, an English Village in Boise, holds open house June 20
Food, music, dignitaries to attend events marking neo-traditional development off Fairview Avenue

June 8, 2009
For more information, contact
Ted Mason, 338-0420
Martin Johncox, 658-9100
Facebook: http://groups.to/ambleside and http://groups.to/tedmasonhomes
Twitter: @tedmasonhomes
Web: www.tedmason.com

Fairview Avenue is a great place for shopping, services and food and, increasingly, for upscale developments. Just 1,000 feet away from Fairview, a traditionally-designed, European themed development called Ambleside is now under construction.

“It is a different kind of development, especially for this location, but we have built our reputation on doing things a bit differently than the competition and this will be a very desirable community,” said Ted Mason, owner of Ted Mason Signature Homes. “Because the concept is so new, we thought it would be a good idea to have an event to introduce it.”

The clubhouse, pool and two homes at Ambleside have been finished and furnished for tours. Ambleside is north of Fairview Avenue off Shamrock street, next to the Steelwood Enterprise Center.

Rollout events start at 10 a.m. on Saturday, June 20 when the Boise Hawks will be at Ambleside until noon giving away tickets to anyone. Realtors will also be conducting tours of the model townhomes. The Grand Opening Garden Party runs from 4 p.m. to 8 p.m. including gourmet catering by Chef Cordel Knight. The five-piece Glory Brass Band will play from 4 to 5 and Randy Coryell, pianist at Grove Hotel, will play from 5:30 to 8. A ribbon-cutting will be held at 5:15 and local dignitaries have been invited. The Garden Party will also feature product giveaways, such as Spa Days, Metro Express Car Washes, limo and dinner, personal trainer, and many others.

Ambleside will create the environment of an English village in Boise. Inspired by the art and architecture of the Georgian period, this sixty-seven townhome development is the result of a commitment to capturing the essence of the most beautiful towns in England, according to Mason. About 130 people are at work on the project and as of this writing, the first townhome building is nearing completion.

“We had a general idea of what we wanted to do at first, but we had trouble finding an architect/planner locally who could pull this off with sensitivity and style,” Mason said. “After some referrals, we met Sherry McKibben of McKibben+Cooper Architects.”

McKibben’s company is very highly regarded for urban planning and sustainable building design and she is an Assistant Professor of Architecture and Director of the University of Idaho’s Urban Research and Design Center in Boise. Mason and McKibben, who have traveled in England and studied its architecture, also took inspiration from the book “The Most Beautiful Country Towns of England” which served as a design guide.

Ambleside has a harmonious design, with townhomes near the entrance smaller, quainter and showing timber. Homes will progress in size and elaborateness as they near the far end, where a “manor house” will serve as the visual anchor. While having a stately appearance, the “manor house” is really a four-townhome building. That’s in keeping with the feel of an English village, but on a smaller scale.

“Having a grand entrance and focal point is a time-honored tradition in urban planning and we are pleased our development will feature it,” Mason said.

Ambleside will have all the modern conveniences, however, including a 2,500-square-foot clubhouse with fully equipped gym and pool. Buildings will have dormers, porches, siding and chimney pots. Rear-loaded garages mean no garage doors face the street. Homes range in size from 1,500 to 1,950 SF and start in the low $220’s. Each home will have a rear-loaded two-car garage, concrete slab storage room, barbecue-ready balcony, landscaped front yard with patio, fireplace, high ceilings, master suite, and more. The homes are Energy Star Certified and have a three-year warranty.

“This is the kind of development you might see in the North End, Southeast Boise or other desirable areas in our fair City,” Mason said. “High-energy Fairview Avenue is a great location for Ambleside and Boise residents appreciate attractive development.”

Mason said he got an unexpected endorsement: Bankers are a pretty conservative group and, like any developer, he has to justify the viability of the project to get funding. While Mason was giving them a tour of the site and explaining the development, one of the bankers said, “Wow, now I want to live here. I believe in this.”

While this might seem an unlikely time to launch a new development, Mason said there are advantages to building in a down economy. With a solid credit rating, financing is less expensive, as are building materials and labor costs.

“From a business perspective, we are building this when costs are low, then enter our sales mode as the economy recovers,” Mason said.

The Ambleside grand opening is part of a larger effort by Treasure Valley builders to encourage sales of new homes, called Home Run. Other developments holding tours on June 20 include Avimor, Strada Bellissima, Brownstone, Alpine Point and Hidden Springs. The developers have come together to pay for radio and television ads and promotions with the Boise Hawks. Met Life Home Loans representatives will at each of the communities June 20 to assist visitors with special financing. For more information, go to www.kivitv.com/homerun (the site will be up Thursday, June 11).

St. Patrick's Day Luncheon Photos

2009-03-19T13:49:00.001-07:00

Enjoy St. Patrick's Day with us

2009-03-11T17:22:00.000-07:00

The past year has been a rough one for us in the development industry but better times are ahead. In the spirit of looking forward, I would like to invite Realtors who have worked with me – and those who would like to work with me - to a St. Patrick’s Day lunch from 11:30 a.m. to 1 p.m. on Tuesday, March 17 at the Red Lion Riverside, 2900 Chinden Boulevard. In keeping with the theme of St. Patrick’s Day, we are serving traditional Irish fare, as well as live entertainment by contemporary Celtic band Beltane. Please RSVP to ted@tedmason.com. The luncheon is limited to 140 people.

2009-03-02T16:14:00.000-08:00

Here's my current head scratcher: The professionals in the homebuilding industry, including myself, are puzzled as to why folks are buying foreclosed, short-saled, bank-owned, distressed-sale money-pits built by who-knows-who with who-knows-what kind of materials or standards of quality. When on the other hand they could be buying beautiful homes built by reputable builders who offer warranty and personal service into the future.

It's about price isn't it?

I am reminded of a quote that hung on the wall of the lumberyard where I did business many years ago when I was first starting out. It read, "The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product".

Here are some items to consider in assessing quality: insulation values, grade of lumber products, sound attenuation, space planning, workmanship, warranty, spacing of framing members, attention to detail, grading. There are others.

Price is important. Prices have declined a lot, primarily because of land and lot price decreases. There is no disputing that for three years land and lot inflation created a monster. Fortunately, those days are behind us. I have been tracking the sales price of one of our most popular homes for a long time. Today it is priced the same as in 1997, adjusted for 3% p.a. appreciation.

A good many homes on the market today are priced below replacement cost. Someone (usually a bank) wants out real bad. Sadly, these properties are not well looked after and I worry about the buyers who end up stuck in a lemon.

An English Village in Boise.

2008-12-29T15:54:00.000-08:00

Every now and then (like after you’ve developed several hundred homes), you get an itch to break out and try something different, to let loose and let the imagination guide the project. This actually happens to me every few years and one of those developments is underway at Ambleside. Ambleside is located next to my offices in the Steelwood Enteprise Center at Fairview Avenue and Wildwood Street.

About three years ago I partnered with some other people on a land purchase and I came out of it with 6¼ acres, a few hundred feet from Fairview and next to some homes. We could have put a typical “Tuscan” themed development but we wanted to build something new and different, something that had not yet been done in Boise.

Ambleside is basically an English village in Boise. Inspired by the art and architecture of the Georgian period, this sixty-seven townhome development is the result of a commitment to capturing the essence of the most beautiful towns in England. We had a general idea of what we wanted to do but we at first had trouble finding an architect/planner locally who could pull this off. After some referrals, we met Sherry McKibben of McKibben+Cooper Architects. This company is very highly regarded for urban planning and sustainable building design and Sherry is an Assistant Professor of Architecture and Director of the University of Idaho’s Urban Research and Design Center in Boise.

After a short discussion at her downtown office, Sherry showed us the book “The Most Beautiful Country Towns of England” and the illustrations showed us pretty much what we wanted to do.
After Sherry drew up some detailed conceptual drawings we were ready to move forward. We are now putting people to work building the development.

When you enter Ambleside, you will notice a “mansion” at the far end. This really isn’t a mansion, but a townhome building that will be disguised as a mansion and it provides a visual anchor for the rest of the development. Less elaborate (but still attractive) townhome buildings will start at the entrance and buildings will become more ornamented as one progresses to the back. This is fully in keeping with the feel of an English village. Having a grand entrance and focal point is a time-honored tradition in urban planning and we are pleased our development will feature it.

Ambleside will have all the modern conveniences, however, including a 2,500-square-foot clubhouse with fully equipped gym and pool. Buildings will have dormers, porches, siding, chimney pots. Rear-loaded garages mean no garage doors face the street. Homes range in size from 1,500 to 1,950 SF and start in the low $220’s. Each home will have a rear-loaded two-car garage, concrete slab storage room, barbecue-ready balcony, landscaped front yard with patio, fireplace, high ceilings, master suite, and more.

This is typically the kind of development you might see in the North End, Southeast Boise or other upscale areas. Fairview Avenue may seem like an unusual location for Ambleside, but we think attractive development will be supported wherever it is. We even got an unexpected endorsement: Bankers are a pretty conservative group and, like any developer, I have to justify the viability of my project to them to get funding. While we were giving them a tour of the site and explaining the development, one of the bankers said, “Wow, now I want to live here. I believe in this.”

Our end-of-the-year clearance sale

2008-12-02T11:52:00.000-08:00

This year, 2008, has been a year the likes of which has not been seen for a long time. It has presented our company with challenges, opportunities and surprises. Notwithstanding the slowdown, Ted Mason Signature Homes is on track to close 40+ homes this calendar year.
Unfortunately we have had to make staff changes and other adjustments, but we continue to see an active market for our homes and we continue to prudently plan and build for our homebuyers.

We have opened three great new communities this year: Walnut Creek in Kuna, Chatham Towne in Boise, and Ambleside in Boise. These bring to 11 the number of communities in the Treasure Valley. As we introduce new homes in new communities and move into new areas of established communities we retire some model homes and furnish new models.

This year for the first time we are holding a year-end model home clearance sale. The homes are offered directly from my office and all contracts will be written by me personally. Naturally the Ted Mason Signature Homes 3 year warranty is on every home. We look after the folks that put their confidence in us. If you are interested, please visit our website and click the Year End Model Home Clearance area.

Thanks for visiting Chatham Towne

2008-11-26T12:11:00.000-08:00

Thanks to everyone who came out to the Chatham Towne bazaar! It was a great way to start the holiday season. Around 500 people came during the two days. By the end, we were very tired, but we really enjoy putting on events and look for similar events in the future.

And have a great Thanksgiving!

Join us Friday and Saturday at Chatham Towne

2008-11-11T14:04:00.000-08:00

If you're like me, you really enjoy Christmas and holiday season. This year, we have a couple of surprises for Boise.

For starters, we'll be holding a holiday boutique featuring holiday and everyday home decor, gourmet foods, ornaments, spa products and jewelry, all produced by local artists. The boutique will be held from noon to 6 p.m. on Friday and 9 a.m. to 6 p.m. on Saturday at Chatham Towne. The Pie House will be offering free homemade pie and warm holiday drinks.

More importantly, Chatham Towne is a bold stylistic statement in the Boise market. We have modeled Chatham Towne on classic New England design principles, much like the kinds of homes seen in a Pottery Barn catalog. In fact, we didn't stop there - the Pottery Barn has accepted our inviation to furnish the model homes. If you've ever looked at a Pottery Barn catalog and wondered if you could live in a home like that, well, now you can.

Creating the Pottery Barn vibe is a matter of re-arranging details, not necessarily doing anything more expensively, and townhomes are priced competitively at $179,000 and $159,000 for three- and two-bedroom units. It consists of 15, two- and three-bedroom townhomes at the northeast corner of Meadowlark Drive and Five Mile in Boise.

Builders in this area tend to be pretty conservative and I'll admit the black doors took a little getting used to. Stylistic touches include built-in dining areas with upholstered bench seating and table; wallpapered areas; built-in entertainment center with LCD HDTV; shelving along the tops of the walls; trim; and beadboard paneling. There will be two model homes staged with Pottery Barn furniture. One model will have mint colored walls with white trim and black doors and white cabinets; the other model will have black cabinets and chrome hardware.

Designers, artists or related companies sometimes partner with or even design housing developments. More recently, Thomas Kincaid, the famous "Painter of Light," lent his name to a Northern California development. Chatham Towne homes carry the standard three-year warranty on his homes, longer than any other builder in the area.

I invite you to visit Chatham Towne this Friday and Saturday. At the very least, you'll get a jump on Christmas shopping and you might find a great place to live.

Getting by in tough times

2008-11-05T12:04:00.000-08:00

A few weeks ago was the worst week in Wall Street's history. I thought it was a sign that things had dried up for a while. Given all the problems facing the housing market these days, sometimes it's hard to stay optimistic.

Then I came into the office Monday morning and there sits a contract to purchase a home that had been slid under my door sometime over the weekend. It was a good way to start the week and a reminder that no matter how bad things might seem in the financial markets, we're in the business of meeting a crucial need of good people.

I got another reminder later in the week. A retired husband and wife were to meet me at 1:00 pm for a walk-through of a home they were purchasing. Ten minutes passed... then twenty minutes passed and they still hadn't shown up. I began to worry that, amid all the news of financial disaster, they had had second thoughts and weren't interest at this time. To my relief, in walked the couple about thirty minutes late. In talking with them, I learned that a Ted Mason home is a way to for them to save money. For 18 years, they had lived on a half-acre in a large family home and they were looking to downsize, yet live in a community that took care of the yard work and snow removal.

Times are tough for all developers. In a typical month, I sell 10 to 12 homes. These days I'm doing about half that, which is enough to get by in a down economy. TMSH is in a good position to make it.

Due to retirement, health changes, economic conditions, or personal choices to simplify their lives, more people are drawn to smaller, well-built homes close to transportation corridors, employers, and shopping facilities. There are not a lot of builder/developers that offer what I do: lawn service, snow removal, three-year warranty, high quality construction and homes under 1800 square feet. As I told The Idaho Statesman, I have a niche that's managing to hold its own in this down market.

As long as we continue providing a valuable service to society, I believe people will continue to place their trust in us.

Wii have a winner!

2008-10-17T09:22:00.001-07:00

Lisa Vanderwiel of Eagle is the winner of the Wii given away after the St. Luke's Women's Fitness Celebration! At the Virtual Home at last month's Women's Show, we invited people to fill out a raffle form and the Fitness Celebration staff pulled Lisa's entry at random out of a bag containing all 1,500 entry forms. Lisa is a Mortgage Loan Officer with US Bank and we hope she enjoys her Wii and Wii Fit package.

Congratulations, Lisa, from all of us at Ted Mason Signature homes!

See Spot Walk was a blast

2008-10-06T13:56:00.000-07:00

Aside from block parties at my communities, I haven't sponsored events. In the last month, Ted Mason Signature Homes been a major sponsor of two: The St. Luke's Women's Fitness Show and See Spot Walk.

See Spot Walk is a major fundraiser for the Humane Society of Idaho and was held at July Davis Park last Saturday. Lisa Sawyer of DIY Planning and Consulting and friends made a human-size doghouse, which drew about 1,000 people during the day. I and other company representatives greeted people, gave them a dog biscuit, a chip clip and information on TMSH. Dogs are popular with our buyers and our developments have sidewalks, pathways, parks and fenced yards to make them pet friendly, so See Spot Walk was a great fit for us.

Doing events and meeting people is lots of fun. Here, Elle Starr with Alexander and Associates marketing helps me find enough chip clips.

I have built around 800 homes since 1991, but this is my first dog house!

Vinny Johncox helped lure people inside the house to pick up their dog bone.

Happy to be in Kuna

2008-10-03T13:45:00.000-07:00

Thanks to everyone who came out to the Walnut Creek grand opening last week! About a hundred people, maybe more, came out during the afternoon to enjoy free food and classic country music by the Dan Sevy band of Marsing. We were able to show off our two model homes. Kuna has been trying to attract a more diverse selection of housing, especially homes a notch above the typical starter homes, and we are proud to be building in Kuna. The Kuna-Melba News also has a great story on the event here.

Our ribbon cutting included (from left) myself, Steven Schrader of TMSH, Kuna Councilman Richard Cardoza, Chamber of Commerce President Nicola McIntosh and Kerri Avery, a Kuna Chamber board member.

It was a great day to hold a block party.

Kuna High School cheerleaders entertained between music sets.

The Dan Sevy Band is from Marsing.

Our Coldwell Banker Realtors helped out with preparing and serving food and organizing.

Kids enjoyed simple carnival-style games and prizes.

"Mark to Market" affecting the economy

2008-09-29T16:51:00.000-07:00

There have been a number of stories in the local media lately about favorable signs in the local housing market. Among other things, home prices gradually are starting to increase, mainly because construction has slowed significantly the demand is starting to absorb supply.

Still, there’s a huge problem that needs to be resolved in the national economy, and soon.

“Mark to Market” works like this: most assets held by financial institutions need to be repriced constantly, to reflect the value of those assets if they were dumped on the marketplace. MTM is intended to avoid the excesses of the 1980s, when banks were loaning much more than what things were really worth and enjoying, for a time, increased returns.

But in the current climate, MTM is causing severe damage in the housing market and development industry. Let’s say a developer is building a subdivision for $10 million. Typically, banks can’t have more than 80 percent equity, so they loan the developer $8 million and he has to come up with the rest. As long as housing prices increase or at least remain stable, this works fine and everyone earns a fair profit

But if market values have declined – let’s say the subdivision is now worth $7.5 million – the bank could have more than 100 percent equity. Under Federally-enforced MTM rules, the bank must reassess the value of the subdivision and demand the developer pay them enough to bring the bank’s equity back to 80 percent. If the developer can’t pay up (a common problem when people aren’t buying homes), the bank must seize the property and sell it for whatever it can get, to cover its losses. The developer just loses his subdivision and the bank loses its investment.

This is good if you’re looking to buy cheap land, but it’s disastrous for the developer and the housing market. These fire sales drive down the market price of land even more, forcing banks to revalue other developments for even lower prices. In theory, the downward spiral would continue until no one had any equity or value left.

Banks don’t like doing this either, as they know they’re cannibalizing the housing market and destroying their future returns. However, banks must enforce MTM to satisfy Federal Trade Commission requirements.

One solution is for people to by more homes. Fed Chairman Ben Bernanke has lowered the auction rate, but mortgage rates haven’t fallen in return. In some areas of the country, regulators are aware of the problem and are hesitant to enforce the letter of the law at this time, as doing so would severely damage the development industry, the banking industry and impair national economic recovery.

There are some regionally owned, privately-held banks with strong capital positions who are not forcing MTM because they know what they could trigger if they do. But if a builder has multiple banking relationships, he could be vulnerable. If banks are publicly traded, they’re under more scrutiny and may feel compelled to enforce MTM as failing to do so could violate their covenants.

We’ve heard about the federal government loan hundreds of billions of dollars to bail out financial markets. In the case of Mark To Market, however, a bailout isn’t the solution. The market may be able to take care of itself with sensible enforcement of rules.

Come enjoy the party at Walnut Creek

2008-09-25T14:20:00.000-07:00

One of the more fun parts about my job is hosting community events such as block parties. This Saturday, Sept. 27, we're holding Family Fun Day, a grand opening for the Walnut Creek development, complete with prize drawings, bouncy jumps and a Dad's Football Throwing Contest. We will also have free food, including walnut apple pie at 3 p.m. The Dan Sevy Band of Marsing will provide live classic country music. We have also invited local school groups to sing and a Scout Troop to lead us in the flag raising. Everything is free and open to the public.

Walnut Creek is on Heartland Street, which is off Ten Mile Road, between Hubbard and Deer Flat roads, on the east side of Ten Mile, and the fun lasts from 1 p.m. to 4 p.m. Two homes have been constructed (one outfitted as a model home) and tours of the 58-lot development will be conducted.

We're happy to be in Kuna and Kuna is happy to have us. In researching Kuna, I found there's not much there for people who are ready to move up from a starter home and Walnut Creek is intended to meet that market demand.

Up to this point, I have focused on building smaller homes and most buyers are single people or older people looking to downsize. We had several families approach us who wanted to stay in Kuna, but couldn’t find anything a step above a starter home. There are people looking for this opportunity and we want to capture that market. But the homes will still have our signature warranty and quality.

Walnut Creek has a country cottage/farmhouse feel, with bold Craftsman-styled homes. It will have four acres of open space, consisting of greenbelt and neighborhood parks large enough for a pick-up game of baseball or soccer. It’s off of Ten Mile Road about four miles south of Interstate 84 and construction on an interchange is set to begin there in 2009.

Walnut Creek is a change for us. We’ve been doing downsized products for a while and due to Kuna’s minimum home and lot sizes, Walnut Creek homes are at least 2,200 square feet (and most will be larger) and lots are at least a third of an acre. But this is a good niche and I wanted to build in Kuna because it’s a Main Street America type of place. It’s a great town with a strong feeling of community – people rally around the sports teams and there’s a lot of focus on making Kuna a nice place and we want to be part of that.

A story of courage

2008-09-05T11:23:00.000-07:00

As you know, we are a major sponsor of the St. Luke's Women's Fitness Celebration. We are very happy to host a presentation by Anne Audain, one of the founders of this event 15 years ago.

Anne has an amazing story. After having reconstructive surgery on her feet at age 13, she went on to win more road races than any other female distance runner in the 1980s and has remained an advocate of fitness. Audian will be speaking Thursday, September 11 from 7 p.m. to 8:30 p.m. in the Coronado Room Courtyard Marriott Meridian, 1789 S. Eagle Road. You don’t need to be a runner to appreciate Anne’s determination. I invite you to hear Anne’s amazing story. Light refreshments will be served.

UPDATE: Anne's talk was truly inspiration. Thanks to all for turning out!

EnergyStar!

2008-09-02T09:34:00.000-07:00

I’m pleased to say that Ted Mason Signature Homes are now EnergyStar certified.

EnergyStar certification is an important goal for many builders, who use it in marketing to show their commitment to energy efficiency. To date, more than 5,000 home builders have partnered with EPA to construct more than 840,000 Energy Start homes. By the end of the decade, more than 2 million homes are expected to earn Energy Star.

However, while EnergyStar is a great program, we have been doing many of the things required by EnergyStar, some of which are law under national building codes. We go the extra mile by reinforcing the insulation in crawl spaces, for example, and using 93-percent-efficient furnaces, compared to the old standard of 80 percent. EnergyStar’s extra requirements, however, ensure our homes will meet the highest standards of efficiency.

Compared with standard homes, Energy Star homes use substantially less energy for heating, cooling, and water heating-delivering $200 to $400 in annual savings. Over the average 7 to 8 years you may live in your home, this adds up to thousands of dollars saved on utility bills. Additional savings on maintenance can also be substantial.

Properly installed energy efficient improvements deliver better protection against cold, heat, drafts, moisture, pollution, and noise. An energy-efficient home helps ensure consistent temperatures between and across rooms, improved indoor air quality, and greater durability.

Support the St. Luke's Women's Fitness Celebration

2008-08-14T16:38:00.000-07:00

It's a time-honored tradition for businesses to sponsor public events. Typically, the business wants to reach people who are interested in the event's demographics.

That's the idea behind our sponsorship of the St. Luke's Women's Fitness Celebration (www.celebrateall.org). This event, from Sept. 18 -20, includes a two-day Women's Show and a 5K Run, Walk and Stroll for women of all ages and all abilities. Founded in September 1993, the Celebration 5K has grown each year as more and more participants share the event with their families and friends. At the Women's Show, to be held inside the Boise Centre on the Grove, we'll have a 250-square-foot "virtual home" designed to show what it's like to live in one of our homes. The home will be interactive, with actors "living" in the home and ready to answer questions, and it should make a fun stop along the way.

The St. Luke's Women's Fitness Celebration is a good fit for our company and I encourage you to attend it. Women purchase the majority of our homes and many of them are interested in the fitness amenities our homes offer, including parks and walking/jogging pathways. Our company believes in sponsoring community events like this and if you have an idea for one, please contact me.

Economy favors infill

2008-07-24T14:25:00.000-07:00

Developers and builders are often asked to prognosticate, especially in these difficult economic times, and I plan to do that periodically.

The economy is especially tough in the real estate market. But these conditions, I believe, are permanently changing the market.

I think infill development is poised to really take off. Fuel, energy and materials costs are skyrocketing, while inner-city land costs are falling. Combined with local government policies favoring urban renewal, I believe we will see less development outside of city limits, particularly planned communities.

“Infill” is small-scale development next to existing development, either on vacant or developed land. Infill has some drawbacks for developers: land costs have been higher, there may be contamination issues and the parcel may be oddly-shaped. On the other hand, infill takes advantage of existing sewer, water and streets. Infill development – especially when it’s done on a scale of several acres or more – also renews the housing stock of a city.

For the past few decades, however, developers have gravitated toward greenfield development. Building on farmland has been cheap and easy and local governments have been willing to extend services, making suburban homes lower in cost but farther in distance.

Things are different in 2008. While a home in Caldwell is cheaper, it’s costing around $10 to $17 per hour to drive, so a 2-hour commute to Boise comes to at least $400 a month. That’s at least $4,800 a year just for work commuting, making an infill location with a ½-hour commute start to look like a bargain.

Also, sheetrock, stone, metal and appliances are much more expensive than they were just a few years ago, as is energy to heat and cool a home. So, a smaller home on a smaller infill lot is more economical to build and maintain.

I think these trends are here to stay, permanently favoring infill. Of course, I have a bias here. Ted Mason Signature Homes has been doing infill projects since 1991. After building hundreds of such homes, we know how to profitably build high-quality infill homes at various price points.