Stupid Legislative "Solutions"

Here's an article that appeared in the Everett Herald a few weeks ago about yet another misguided legislative attempt to solve the "housing crisis."

One of the bills Nathan Gorton is backing in the Legislature this year sounds like it makes too much sense to do anything but go down in flames.

What he'd like to see passed is a measure that would require cities to do what it takes to build enough homes each year to cover the number of new jobs they're expected to create. ...he'd like communities to provide homes for their own work force because it would stick fewer cars on the freeway for the morning commute.

I suppose if people were robots programmed to live only in the closest available place to where they work, legislation to that effect would indeed "make sense." However, as some of us are aware, people do not necessarily live in close proximity to their workplace, even if they can. Even the richest man on the planet, who can clearly choose to live anywhere he wants prefers to live with a 5-mile stretch of overcrowded SR-520 between his home and office.

Housing is important to Gorton. He's the new executive officer for the Snohomish County Camano Association of Realtors based in Everett.

Gorton noted Friday that three years ago, the median price for a home in Snohomish County was $220,000. Now it's $356,000.

"If you're a homeowner, it's a great thing," he said. "But we think we almost reaching a crisis point."

Oh we're reaching a crisis point all right, but not for the reason that home salesman Mr. Gorton is implying. Home prices have experienced such a steep ascent not because of a lack of legislation, but because of fly-by-night lending and pyramid scheme psychology.

Gorton said that from 1993 to 2000, King County added 237,000 jobs and 75,000 homes. Obviously, many of those workers had to look for a home somewhere else. There isn't a statistic handy, but conventional wisdom tells us that many of those workers bought a home in Snohomish County, where the prices are typically $50,000 less.

"That drives up housing prices outside King County and puts a lot of cars on the road," said Gorton, noting he's already hearing of Seattle workers who are buying homes in Whatcom County and making a very long commute each day.

Because there are simply no homes left from Seattle all the way to Bellingham. Right. Give me a break.

That brings us back to House Bill 1726.

"It says if you're going to bring in a lot of jobs, let's do better with planning where you'll put those folks," Gorton said.

He thinks it will help keep home prices down and reduce freeway congestion, which he notes should make it a lot easier for businesses to recruit new employees. And you certainly don't need to be a business to want to reduce traffic and make it possible for people to buy homes.

Maybe it's just me, but Mr. Gorton's comments seem to have the same disingenuous feeling as the It's A Priority campaign—which incidentally is a project of the Washington Realtors, a group which Mr. Gorton is a member of. Hmm.

P.S. (Check out the latest Google search results for It's A Priority. I love it.)

(Mike Benbow, Everett Herald, 02.26.2007)

"This is a great time to buy a home."

Check out this absolutely delightful paid advertisement masquerading as a "guest editorial" in today's Seattle Times. It's penned by Mr. Samuel L. Anderson, the executive officer of the Master Builders Association of King and Snohomish Counties.

The media have been all abuzz over the past year about the softening in the housing market.
...
At the same time, local analysts point out that even though home sales in the greater Puget Sound region have slowed, now is still a good time to buy a home, particularly in our area.

What does this slowdown really mean for consumers? Is it wise to sit back and wait for a home in the hopes that prices may drop? Most real-estate experts in our region say don't bet on it.

Oh really? Okay, well why is that exactly, Mr. Executive Builder Man?

One reason we have not experienced the steep decline seen in other markets is that while other parts of the country face an oversupply of housing, we do not.

So you're saying that supply is not growing faster than demand, so we're not headed for an oversupply? Interesting... very interesting.

Here in Washington state, the Growth Management Act (GMA) actually limits the supply of new housing entering the market by directing where new development can occur. As long as GMA is in place, we are very unlikely to find ourselves in a housing glut.

Growth management act, huh? You don't say.

Another key factor is that the area in and around Seattle has a healthy supply of jobs and a strong regional economy — factors most experts agree help keep prices from falling.

What a compelling argument.

Sitting on the fence waiting for the absolute best deal is a gamble that prevents consumers from taking advantage of buying a home, while prices are moderating.
...
In today's housing market, the real risk is in waiting to buy a home.
...
Unlike some cities where the real-estate market is in a slump, the Seattle area is healthy and analysts feel certain it will stay that way. As a result, the deep discounted prices some consumers have been hoping for simply won't be happening here.

For consumers sitting on the sidelines, the bottom line is simple. Homeownership is always attractive. Besides being a stepping-stone to a future of financial security, homeownership provides a sense of community and personal satisfaction. In fact, studies show that homeowners are more content with their lives, enjoying a stronger sense of belonging and increased activity in community groups.

The equation is simple: Since housing is always a smart investment and interest rates are still near 40-year lows, savvy consumers know this is a great time to buy a home.

Well dang, I'm convinced. Now is a great time to buy, and I'd better be quick about it or else I'll be priced out forever, doomed to be a miserable, broke, dissatisfied loner, renting from the man for the rest of my life.

(Samuel L. Anderson, Seattle Times, 01.24.2007)