It will be curious to see how September's sales turn out on the whole. Interestingly, my personal business is up despite all this. I can attribute it to prospecting, perseverance, and providing professional service.
Here is the chart:
Tuesday, September 23, 2008
August Sales Anomoly
Sales volume for August was surprisingly low. Normally July is the slow month for the summer as folks are on vacation and busy with family reunions. Most folks want to get their kids in school and usually will purchase a home in August in a frenzy. This year was different. Unfortunately, I don't know how to account for it. Fannie Mae and Freddie Mac were in their last days during August but nobody knew they were going into convservatoriship until this month.
It will be curious to see how September's sales turn out on the whole. Interestingly, my personal business is up despite all this. I can attribute it to prospecting, perseverance, and providing professional service.
Here is the chart:
It will be curious to see how September's sales turn out on the whole. Interestingly, my personal business is up despite all this. I can attribute it to prospecting, perseverance, and providing professional service.
Here is the chart:
Monday, September 22, 2008
Economic Insanity
The jury is still out and several more shoes need to drop regarding the U.S. Government Bailout of Wall Street. Congress may or may not pass Treasury Secretary Paulson's plan. The markets may or may not like it. We will have to wait and see.
Regardless of the outcome, our economy is experiencing and will continue to experience convulsions as it goes through withdrawal symptoms. In this case, the opiate was mortgage backed securities that were founded on nothing more than sham loans.
As far as housing goes, the fundamentals tell us that if this bailout passes, interest rates in the future (not immediate future but maybe a year or so out) will go up. Inflation will increase. House prices will go up but fewer people will be able to buy with a bank mortgage because interest rates will be too high. Think 1978-1982. Seller financing will abound.
If this bailout doesn't pass (and I hope that it doesn't), you will see a large number of firms disappear due to poor decision making. The economy will slow as it always does when it is clearing the excesses out of the system. House prices in Utah will stay intact mostly. Home prices abroad will continue to decline for a few more years. This fact is almost unthinkable to folks in charge of our government (particularly in an election year) and therefore they feel compelled to do something about it. Unfortunately, doing so only moves the losses from those responsible (the banks) to those who are not (you and I- the taxpayers).
Regardless of the outcome, our economy is experiencing and will continue to experience convulsions as it goes through withdrawal symptoms. In this case, the opiate was mortgage backed securities that were founded on nothing more than sham loans.
As far as housing goes, the fundamentals tell us that if this bailout passes, interest rates in the future (not immediate future but maybe a year or so out) will go up. Inflation will increase. House prices will go up but fewer people will be able to buy with a bank mortgage because interest rates will be too high. Think 1978-1982. Seller financing will abound.
If this bailout doesn't pass (and I hope that it doesn't), you will see a large number of firms disappear due to poor decision making. The economy will slow as it always does when it is clearing the excesses out of the system. House prices in Utah will stay intact mostly. Home prices abroad will continue to decline for a few more years. This fact is almost unthinkable to folks in charge of our government (particularly in an election year) and therefore they feel compelled to do something about it. Unfortunately, doing so only moves the losses from those responsible (the banks) to those who are not (you and I- the taxpayers).
Thursday, September 11, 2008
Condo Conversion in Roy? Whoa?!
There was an interesting article in the Standard today about a condo conversion going on in Roy. This caught my attention because usually you see condo conversions in a seller's market. We are definitely in a buyer's market right now. Also, in order to make the conversion, the owners are spending significant funds on capital improvements. They are adding covered porches, landscaping, ect. That is a major investment in a soft marketplace.
I wanted to see what the condo market was like in Roy so I ran the numbers on the MLS. Here is a photo of what the place looks like now versus the MLS photo of a complete project.
You have got to love the computer generated renditions complete with white puffy clouds.
So here is how the numbers shakeout. Comparable sales in Roy are between $75 and $110 per square foot. The ones for $75 are average in condition. The ones for $110 are brand new and architecturally appealing. With a list price of $124,900 for 875 Square Feet the condo conversions are for sale at $142 per square foot!! They must have gold-plated toilet seats in there.
I sense some disappointment coming soon to the investors in this project. It sounds like the expectations may be a lot higher than what reality will afford. These units will likely sell for around $90/sqft due to the awkward nature of it being an older floorplan with a new facade.
I wish these guys luck with the conversion but my gut check tells me they are not going to make any money doing it.
I wanted to see what the condo market was like in Roy so I ran the numbers on the MLS. Here is a photo of what the place looks like now versus the MLS photo of a complete project.
You have got to love the computer generated renditions complete with white puffy clouds.
So here is how the numbers shakeout. Comparable sales in Roy are between $75 and $110 per square foot. The ones for $75 are average in condition. The ones for $110 are brand new and architecturally appealing. With a list price of $124,900 for 875 Square Feet the condo conversions are for sale at $142 per square foot!! They must have gold-plated toilet seats in there.
I sense some disappointment coming soon to the investors in this project. It sounds like the expectations may be a lot higher than what reality will afford. These units will likely sell for around $90/sqft due to the awkward nature of it being an older floorplan with a new facade.
I wish these guys luck with the conversion but my gut check tells me they are not going to make any money doing it.
Friday, September 5, 2008
High-Density Dismay - Part II
The North Ogden city council rejected a proposed multi-unit project today. More fears from the suburbs about increasing demand for affordable housing.
Here is a quote from Councilman Richard Harris:
Here is a photo of some of North Ogden's "big open spaces":
Councilman Carl Turner I think expresses the true sentiment of North Ogden:
Just more of the same "We don' want those people living here."
Here is a quote from Councilman Richard Harris:
We need to remember what makes North Ogden North Ogden - that's big open spaces and I am pretty well committed to keeping it that way.
Here is a photo of some of North Ogden's "big open spaces":
Councilman Carl Turner I think expresses the true sentiment of North Ogden:
I think the design is great...but not for North Ogden.
Just more of the same "We don' want those people living here."
Wednesday, September 3, 2008
Perils of Landlording: Canine Catastrophes
Being a landlord is not an easy chore. Before becoming a landlord you need to have a reality check: Not everyone chooses to live like you do. Some people choose to leave the TV blaring all night long. Others prefer to pour their waste bacon grease down the drain. Others have a knack for never doing the dishes. Yet others prefer to keep their dogs inside...always.
Now that we have a good grip on reality we can begin moving forward being a landlord. Keep in mind that the biggest part of making money as a landlord is screening. If you become an expert screener, you will become a profitable landlord and your experience will be rewarding. You will learn to develop certain policies and rules. Some of these will apply to a tenants credit record, others to income, and others to pets.
I reaffirmed my policy of No Dogs today. Tenants moved out of one of my rentals over the weekend. They called me and said the place was clean and in good order. I had been over to the home a month prior and the home seemed well kept. I remember nice scented candles were burning during my visit which gave the place a nice fresh smell.
Yet, when I opened the door after they moved out, what was there to greet me? Here I beheld a cute well kept home that was choking with the smell of dog urine. It was like getting smacked in the face with a two-by-four.
I initiated the lease with these tenants two years ago prior to my No Dogs policy. A later bad experience had solidified this rule for me. However, I never expected a bad experience from these tenants.
On the surface, the carpets seemed to look good. Here is what the back sides looked like:
Urine Urine Everywhere But Not a Drop to Drink. The back of the carpet should be uniform gray in color and instead we have something that looks like it belongs in Yellowstone Park. If you scratch your computer screen over the photo you can actually smell the carpet. Not surprisingly, the pad was completely disgusting as well. Subfloors too.
In all, this reflooring experience will top $2500. The tenant's (now forfeited) deposit was $700 so I am out about $1800 for the experience. Unfortunately, these particular tenants suffered a significant decline in their credit so it would be pointless for me to take them to court. As the saying goes: You can't bleed a turnip.
The bottom line is that YOU MUST CREATE RULES TO PROTECT YOUR PROPERTY. I effectively wiped out more than a year's worth of positive cashflow by allowing this to happen. I am fortunate that appreciation on the property compensated for it. However, in a marketplace where prices are flat, you can't afford to make mistakes like this too many times before your goose is cooked. I recommend banning dogs from your rentals.
HOW TO FIX PET ODOR DISASTERS
You can solve the pet odor problem very easily. First, you have to concede that the carpet is not worth saving...even if it looks ok. The odor locks into the fibers and the pad. If your carpet cleaning guys can't get it out with one pass, then you must scrap the carpet and start over. Since urine is a liquid, it will sink into the wood subfloor. I have made it a practice to run over the dry wood with a water/bleach mix. The bleach will neutralize the ammonia in the urine and chemically begin to break down the odor. You will notice foam bubbles forming where the bleach reaches the urine spots. This means that its working and is creating a gas. WARNING: THIS CHEMICAL PROCESS CREATES HYDROCHLORIC ACID GAS WHICH CAN CAUSE LUNG DAMAGE AND DEATH. In other words, do this at your own risk. When in doubt, don't do it. The other thing I do after the floor is dried is paint KILZ brand stainblocker on the floor. This chemically seals any muted left-over odors into the wood. It is highly effective. Once the KILZ has dried for a day or so, you are ready for new carpet and a fresh smelling home. I have done this on 6 homes with complete success each time.
Now that we have a good grip on reality we can begin moving forward being a landlord. Keep in mind that the biggest part of making money as a landlord is screening. If you become an expert screener, you will become a profitable landlord and your experience will be rewarding. You will learn to develop certain policies and rules. Some of these will apply to a tenants credit record, others to income, and others to pets.
I reaffirmed my policy of No Dogs today. Tenants moved out of one of my rentals over the weekend. They called me and said the place was clean and in good order. I had been over to the home a month prior and the home seemed well kept. I remember nice scented candles were burning during my visit which gave the place a nice fresh smell.
Yet, when I opened the door after they moved out, what was there to greet me? Here I beheld a cute well kept home that was choking with the smell of dog urine. It was like getting smacked in the face with a two-by-four.
I initiated the lease with these tenants two years ago prior to my No Dogs policy. A later bad experience had solidified this rule for me. However, I never expected a bad experience from these tenants.
On the surface, the carpets seemed to look good. Here is what the back sides looked like:
Urine Urine Everywhere But Not a Drop to Drink. The back of the carpet should be uniform gray in color and instead we have something that looks like it belongs in Yellowstone Park. If you scratch your computer screen over the photo you can actually smell the carpet. Not surprisingly, the pad was completely disgusting as well. Subfloors too.
In all, this reflooring experience will top $2500. The tenant's (now forfeited) deposit was $700 so I am out about $1800 for the experience. Unfortunately, these particular tenants suffered a significant decline in their credit so it would be pointless for me to take them to court. As the saying goes: You can't bleed a turnip.
The bottom line is that YOU MUST CREATE RULES TO PROTECT YOUR PROPERTY. I effectively wiped out more than a year's worth of positive cashflow by allowing this to happen. I am fortunate that appreciation on the property compensated for it. However, in a marketplace where prices are flat, you can't afford to make mistakes like this too many times before your goose is cooked. I recommend banning dogs from your rentals.
HOW TO FIX PET ODOR DISASTERS
You can solve the pet odor problem very easily. First, you have to concede that the carpet is not worth saving...even if it looks ok. The odor locks into the fibers and the pad. If your carpet cleaning guys can't get it out with one pass, then you must scrap the carpet and start over. Since urine is a liquid, it will sink into the wood subfloor. I have made it a practice to run over the dry wood with a water/bleach mix. The bleach will neutralize the ammonia in the urine and chemically begin to break down the odor. You will notice foam bubbles forming where the bleach reaches the urine spots. This means that its working and is creating a gas. WARNING: THIS CHEMICAL PROCESS CREATES HYDROCHLORIC ACID GAS WHICH CAN CAUSE LUNG DAMAGE AND DEATH. In other words, do this at your own risk. When in doubt, don't do it. The other thing I do after the floor is dried is paint KILZ brand stainblocker on the floor. This chemically seals any muted left-over odors into the wood. It is highly effective. Once the KILZ has dried for a day or so, you are ready for new carpet and a fresh smelling home. I have done this on 6 homes with complete success each time.
Wednesday, August 27, 2008
Investing in the Market Cycle - Know What to Do When
If you know where you are in the market cycle, then you know what to do to make money in the marketplace. Here is our chart for discussion:
Phase 1 - Seller's Market
This is the no-brainer phase. This was 2006 and most of 2007 for the Utah market. Prices were running up over 1% per month. If you owned real estate you were making money on it. This is where Lemming Investors arrive in droves due to the ease of it all. Notice that there wasn't much of a difference between retail and wholesale pricing. Banks knew if they waited another month their homes would be worth more, so they just listed it at full price and surprisingly, most people paid them that. This was a difficult time to find a bargain. However, there were some out there. In any case, most of the folks who bought during this Phase still made significant appreciation on their homes regardless of whether it was retail or wholesale pricing.
Phase 2 - Transitional Market
This was the end of 2007 to the first half of 2008. In this phase the banks haven't quite figured out that prices are flattening out. It takes them a couple quarters of data to find out what is going on. Therefore, they still price the their distressed homes high. In this awkward stage, prices are sticky for distressed homes lending some confusion to the marketplace. Inventories rise as homes do not sell due to overpricing. We are at the tail end of this phase now. This is a time to be getting your financial house in order.
Phase 3 - Buyer's Market
This is my favorite phase in the marketplace. This is a buyer's market. The best part is that the banks know this as well. Short sales and REO (bank owned) property are very profitable for investors during this phase. This is where you buy homes at 80% of full market price with minor fixup required. You can buy homes at 50% of market price that need lots of fixup. This is the phase that you start binge buying. You can cashflow easily and make equity to cash in when you sell during the next Phase 1. Investors who buy during this phase make a killing when they sell during the next run up in the market. This phase would be analogous to 2002-2004....and soon to be 2009-2011.
Phase 1 - Seller's Market
This is the no-brainer phase. This was 2006 and most of 2007 for the Utah market. Prices were running up over 1% per month. If you owned real estate you were making money on it. This is where Lemming Investors arrive in droves due to the ease of it all. Notice that there wasn't much of a difference between retail and wholesale pricing. Banks knew if they waited another month their homes would be worth more, so they just listed it at full price and surprisingly, most people paid them that. This was a difficult time to find a bargain. However, there were some out there. In any case, most of the folks who bought during this Phase still made significant appreciation on their homes regardless of whether it was retail or wholesale pricing.
Phase 2 - Transitional Market
This was the end of 2007 to the first half of 2008. In this phase the banks haven't quite figured out that prices are flattening out. It takes them a couple quarters of data to find out what is going on. Therefore, they still price the their distressed homes high. In this awkward stage, prices are sticky for distressed homes lending some confusion to the marketplace. Inventories rise as homes do not sell due to overpricing. We are at the tail end of this phase now. This is a time to be getting your financial house in order.
Phase 3 - Buyer's Market
This is my favorite phase in the marketplace. This is a buyer's market. The best part is that the banks know this as well. Short sales and REO (bank owned) property are very profitable for investors during this phase. This is where you buy homes at 80% of full market price with minor fixup required. You can buy homes at 50% of market price that need lots of fixup. This is the phase that you start binge buying. You can cashflow easily and make equity to cash in when you sell during the next Phase 1. Investors who buy during this phase make a killing when they sell during the next run up in the market. This phase would be analogous to 2002-2004....and soon to be 2009-2011.
Home Prices Plateau
OFHEO came out with the quarterly stats for Q2 of 2008. I plugged the figures into the charts. Here is the results for our ongoing appreciation chart:
As you can see, we are in a dramatic return to pre-boom appreciation rates. In fact, the rates of changes are equal on both sides of this most recent boom. Certainly a lot different than the boom in the 90's when it took a few years to get back to a buyers market. In our current instance we are talking a matter of months from top to bottom.
If we do go negative on house prices I anticipate it will be minimal. Probably around the 3%-5% range if at all.
Here is the price chart. This chart tracks $1 of real estate bought in 1986 and what it would be worth now factoring in appreciation rates over time:
If you zoom in on this chart you can see that we are just at the cusp of a plateau in pricing. 1999-2000 saw a minor dip in prices. We might see a similar correction again this time.
Note: WE WILL NOT SEE A CALIFORNIA STYLE PRICE DECLINE. There are folks out there predicting a doomsday scenario. The fundamentals don't indicate that will be the case. See Utah's Crash Proof Fundamentals for details on why.
As you can see, we are in a dramatic return to pre-boom appreciation rates. In fact, the rates of changes are equal on both sides of this most recent boom. Certainly a lot different than the boom in the 90's when it took a few years to get back to a buyers market. In our current instance we are talking a matter of months from top to bottom.
If we do go negative on house prices I anticipate it will be minimal. Probably around the 3%-5% range if at all.
Here is the price chart. This chart tracks $1 of real estate bought in 1986 and what it would be worth now factoring in appreciation rates over time:
If you zoom in on this chart you can see that we are just at the cusp of a plateau in pricing. 1999-2000 saw a minor dip in prices. We might see a similar correction again this time.
Note: WE WILL NOT SEE A CALIFORNIA STYLE PRICE DECLINE. There are folks out there predicting a doomsday scenario. The fundamentals don't indicate that will be the case. See Utah's Crash Proof Fundamentals for details on why.
Friday, August 22, 2008
Mother-In-Law Compartments
The Ogden City council passed an ordinance Tuesday allowing for the rental of Mother-In-Law apartment space in single family residences. On the surface this has huge implications for the use of space in R-1 Zoned neighborhoods. I contacted several folks on the city council and fortunately got some clarification on what is going on.
It appears that the Mt. Ogden neighborhood above Harrison Blvd. is going to be the first guinea pig for this law.
Here is what the law requires:
1. The home must be owner occupied to allow for renting the apartment space
2. The owner must apply for a business license to rent the space
3. The space must meet minimum requirements (to be determined) for habitability
4. Neighbors are notified by the city of the application for the license to use the space and can provide feedback.
2. The use is not appurtenant to the property but to the owners license which is renewed each year.
This is the information I gathered from talking with the Council folks.
This is certainly an innovative law. I am unsure how the results will be. The intent is to keep some of Ogden's older citizens in their homes longer. By allowing apartment rental, the homeowner will have more income and less upkeep for the entire home. They will be able to stay a part of the community longer. I can see the benefit of this.
Some of the problems I see arising from this is confusion in the marketplace about what is legal and not legal use. Some Realtors out there won't read this post or be fresh on the ordinance and think that these homes are legal duplexes. It will create some problems for some Realtors for sure...I won't name names here. The other issues are still to be seen. I am betting that if these units are too concentrated in particular areas, that there will be some deterioration in the quality of the nieghorhood. Parking issues are will likely be the most obvious problem. There is also the risk of a "bad apple" neighbor wanting to rent out his basement to his "bad apple" friends. That could also hurt the neighborhood.
So, the jury is out and we will watch and see how this affects some of the more upscale parts of the city. Stay tuned...
It appears that the Mt. Ogden neighborhood above Harrison Blvd. is going to be the first guinea pig for this law.
Here is what the law requires:
1. The home must be owner occupied to allow for renting the apartment space
2. The owner must apply for a business license to rent the space
3. The space must meet minimum requirements (to be determined) for habitability
4. Neighbors are notified by the city of the application for the license to use the space and can provide feedback.
2. The use is not appurtenant to the property but to the owners license which is renewed each year.
This is the information I gathered from talking with the Council folks.
This is certainly an innovative law. I am unsure how the results will be. The intent is to keep some of Ogden's older citizens in their homes longer. By allowing apartment rental, the homeowner will have more income and less upkeep for the entire home. They will be able to stay a part of the community longer. I can see the benefit of this.
Some of the problems I see arising from this is confusion in the marketplace about what is legal and not legal use. Some Realtors out there won't read this post or be fresh on the ordinance and think that these homes are legal duplexes. It will create some problems for some Realtors for sure...I won't name names here. The other issues are still to be seen. I am betting that if these units are too concentrated in particular areas, that there will be some deterioration in the quality of the nieghorhood. Parking issues are will likely be the most obvious problem. There is also the risk of a "bad apple" neighbor wanting to rent out his basement to his "bad apple" friends. That could also hurt the neighborhood.
So, the jury is out and we will watch and see how this affects some of the more upscale parts of the city. Stay tuned...
Wednesday, August 20, 2008
High-Density Dismay
The Pleasant View city council effectively killed a plan for a high density housing project near the border between its commercial district and residential neighborhoods. The council sited "concern" over the size of the development. Local homeowners expressed dismay over loosing their views.
This same problem has been had in Syracuse as well. A proposed plan to build townhomes recently sent homeowners into a tirade. The folks in Syracuse didn't want "those people" to move into the town and lower their property values.
Since I live in the Urban core of Weber County, I find all these comments by suburban homeowners amusing. The city councils of the communities reflect the attitudes of their constituents as well. What they have not been taught is that high-density housing is good for a community. So long as it is planned and managed in proportion to the rest of the city, it will actually benefit the community to have it.
Everyone needs a place to live. The bank president, the teller, and the janitor that mops up the sticky floors in the bank all need a roof over their head. For a city to say, "We only want Bank Presidents to live here, and putting up a home for a janitor....well...we just don't want that element here" seems to make little sense to me. If the bank is in Pleasant View, it makes sense for everyone to have the opportunity to live close to where they work. Otherwise, the bank will start to have problems getting janitors to service it. They will have to travel too far. At their low wage, it starts to become cost prohibitive. The town's economy will ultimately suffer. Park City is facing these exact problems right now.
The point is that PROPERLY PLANNED high density housing can be a blessing to a community and not a scourge as most suburban minds think.
As a counterpoint IMPROPERLY PLANNED high density housing can be a scourge. For example lets look at the 22nd block of Madison Ave. in Ogden. This street was full of cute Victorian era homes. Sometime during the 60's, in the early years of Ogden's slide into urban decay, someone decided that it would be a good thing for the city to have a couple homes torn down and the large lots made into 30 unit apartment complexes. How Wonderful. It brought more people to an area where there were no jobs for them. Rents declined, property conditions declined, and the downward feedback loop kept spinning. This high-density housing combined with Lyndon B. Johnson's Great Society programs destroyed several of the neighborhoods in Downtown. Suburbanites probably think of these neighborhoods and therefore reflexively reject the idea of high-density housing due to this bad example.
Bottom line: Planned High-Density = Good
This same problem has been had in Syracuse as well. A proposed plan to build townhomes recently sent homeowners into a tirade. The folks in Syracuse didn't want "those people" to move into the town and lower their property values.
Since I live in the Urban core of Weber County, I find all these comments by suburban homeowners amusing. The city councils of the communities reflect the attitudes of their constituents as well. What they have not been taught is that high-density housing is good for a community. So long as it is planned and managed in proportion to the rest of the city, it will actually benefit the community to have it.
Everyone needs a place to live. The bank president, the teller, and the janitor that mops up the sticky floors in the bank all need a roof over their head. For a city to say, "We only want Bank Presidents to live here, and putting up a home for a janitor....well...we just don't want that element here" seems to make little sense to me. If the bank is in Pleasant View, it makes sense for everyone to have the opportunity to live close to where they work. Otherwise, the bank will start to have problems getting janitors to service it. They will have to travel too far. At their low wage, it starts to become cost prohibitive. The town's economy will ultimately suffer. Park City is facing these exact problems right now.
The point is that PROPERLY PLANNED high density housing can be a blessing to a community and not a scourge as most suburban minds think.
As a counterpoint IMPROPERLY PLANNED high density housing can be a scourge. For example lets look at the 22nd block of Madison Ave. in Ogden. This street was full of cute Victorian era homes. Sometime during the 60's, in the early years of Ogden's slide into urban decay, someone decided that it would be a good thing for the city to have a couple homes torn down and the large lots made into 30 unit apartment complexes. How Wonderful. It brought more people to an area where there were no jobs for them. Rents declined, property conditions declined, and the downward feedback loop kept spinning. This high-density housing combined with Lyndon B. Johnson's Great Society programs destroyed several of the neighborhoods in Downtown. Suburbanites probably think of these neighborhoods and therefore reflexively reject the idea of high-density housing due to this bad example.
Bottom line: Planned High-Density = Good
Monday, August 18, 2008
Birds Eye View
I went for a hike with a good friend Saturday. We hiked the Ridgeline Trail up to Lewis Peak. We were greeted on the trail by a stiff 35mph wind and temperatures in the 50's. The pictures today come to you at the cost of sore calves, achy feet, and burning quads. It was a great hike.
Here is our first photo:
Click to enlarge. This gives some great perspective on some of the prominent buildings that are in Ogden. You really get a feel for the massive scope of the AmeriCan Building which holds the AmeriSport Company HQ. The river project land next to it is bare and ready for developement. You can see the large construction project being carried out by the church on the lot next to the temple and tabernacle. This large project is going to be an upscale apartment complex like the ones that currently sit to the west of the Temple. They will be very nice with top rents for the market. You can also see the IRS buildings from the previous post. This is just a great photo to see what is going on.
In the other direction I captured this interesting photo:
This is North Ogden. What grabbed my eye was a the huge scars in the dirt north of town. It looks like a developer has been pushing dirt on a new HUGE subdivision. You can see this scar on the mountain from the valley. Only 3 more subdivisions of this size are able to be built before North Ogden is built out. Interestingly, there doesn't appear to be any work going on. I am sure the developer has been sucked into the vortex of the credit storm like most homebuilders. From the size of it, I believe this development exceeds $100M in scope. Lets see what happens. It may take 5-7 years for a project this large to be finished.
Here is a photo of the author (right) and his good friend Ken Coman (left) atop Lewis Peak...Mt. Ogden is in the background:
Here is our first photo:
Click to enlarge. This gives some great perspective on some of the prominent buildings that are in Ogden. You really get a feel for the massive scope of the AmeriCan Building which holds the AmeriSport Company HQ. The river project land next to it is bare and ready for developement. You can see the large construction project being carried out by the church on the lot next to the temple and tabernacle. This large project is going to be an upscale apartment complex like the ones that currently sit to the west of the Temple. They will be very nice with top rents for the market. You can also see the IRS buildings from the previous post. This is just a great photo to see what is going on.
In the other direction I captured this interesting photo:
This is North Ogden. What grabbed my eye was a the huge scars in the dirt north of town. It looks like a developer has been pushing dirt on a new HUGE subdivision. You can see this scar on the mountain from the valley. Only 3 more subdivisions of this size are able to be built before North Ogden is built out. Interestingly, there doesn't appear to be any work going on. I am sure the developer has been sucked into the vortex of the credit storm like most homebuilders. From the size of it, I believe this development exceeds $100M in scope. Lets see what happens. It may take 5-7 years for a project this large to be finished.
Here is a photo of the author (right) and his good friend Ken Coman (left) atop Lewis Peak...Mt. Ogden is in the background:
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