Builders still hammering away on Ridge

Published 1:50 pm Thursday, October 2, 2008

SNOQUALMIE – Although the economic downturn of the past year has many people watching big purchases and staying away from loans, new houses in the Valley continue to be high on wish lists for the holidays.

“There continues to be activity every week,” said George Sherwin, general manager of Snoqualmie Ridge and senior vice president of Quadrant Homes.

Sales at the Snoqualmie Ridge development in Snoqualmie continue to be strong, and builders don’t aren’t worried about potential buyers staying away. Charlie Conner, owner of Conner Homes, said his company even now has strong sales. Of the 122 lots in one of Conner’s parcels on the Ridge, there are 19 left on which to build, and new houses continue to be purchased every month.

“Things are looking good,” Conner said.

Some developers have sold out their houses and are looking for additional opportunities in the area. Centex Homes sold well all year, and continued to sell after the Sept. 11 attacks. Centex sold the last of its townhouses and single-family houses a little over a month ago.

“It appeared to be fine as long as we were out there,” said Centex Homes President Lou Smith. “We would go back to that market if we had the opportunity.”

The Ridge, however, has not been immune to economic woes. With some costing upward of $1 million, houses on the Ridge have tended to be on the market a little longer in recent months.

“The higher the range of the home, the quicker it reacts to the economic environment,” Sherwin said.

The most striking change came, understandably, in the immediate wake of Sept. 11. Sherwin said traffic through houses grinded to a halt, as it did throughout much of the nation, right after the attacks.

He also said the market for new houses reacts like any other market, with supply resulting directly from demand. New house construction on the Ridge did slow down as people became leery of big purchases in an economic environment that seemed to become more and more unstable.

“They [developers] are making sure their inventory is manageable by not building too much,” Sherwin said.

But business has picked back up and developers are still confident the Ridge is going to pay off. The Ridge does offer lower-priced starter houses for the first-time buyer, and Sherwin said that all models are getting interested buyers.

“We’d love it to get stronger, of course, but we have healthy activity in all segments,” he said.

The effort to trim down inventory has not caused Sherwin to stop building model houses for immediate buyers either. He said he has more problems with building permits than he does with a frugal public, and still has plans to develop another parcel his company owns on the south side of Snoqualmie Parkway.

“It’s been a good year to date,” Conner said. “I’m not going to complain.”

Sherwin said most of the traffic coming through the Ridge is serious buyers, not window shoppers or interior decorators looking for ideas. And although record low interest rates have made mortgages more appealing, he believes the events of the past couple of months have given people a reality check on their mortality and what they should invest in during their lifetime.

“We’ve had a demonstration of how short life is, and people want to put their families in a good home,” Sherwin said.

You can reach Ben Cape at (425) 888-2311, or e-mail him at ben.cape@valleyrecord.

com.