Thurston County real estate experts raise concerns about regulations

Despite a relatively strong Thurston County housing market — single-family home sales rose 12 percent in February — representatives of the home-building community voiced concerns on Wednesday about the cost and pace of developing land, taking aim at city, county and state regulations.

“Where is a great place to build? At this time, it’s not this county,” said David Danton, operations manager for area builder Lexar Homes.

Danton was among several real estate experts who took part in a housing summit on Wednesday at the Lacey Community Center. The half-day event attracted about 100 people, including a number of elected officials and candidates. The event was organized by Olympia Master Builders and the Thurston County Realtors Association.

Key to the summit were two panel discussions: one on the current state of the housing market, and the other on the effects of regulation on the market. Although there were two discussions, there was quite a bit of overlap as both groups focused on regulations.

Some examples:

▪ Scott Bergford: Energy-efficient custom home builder Bergford of Scott Homes said the cost of land in Thurston County has led him elsewhere, such as Kitsap and Lewis counties. “Land is cheaper and more available and regulations aren’t as strict as in Thurston County,” he said.

▪ Dennis Adams: “The county has an obligation to streamline the (development) process,” said Realtor Adams in reference to the Mazama pocket gopher and its protected status here, which has slowed or prevented some development.

▪ Bergford also shared this anecdote: A Seattle home that cost $1.6 million to build generated $45,000 in development-related fees. But Bergford said he is building a $300,000 home in Tumwater that has cost him $35,000 in similar fees.

▪ Realtor Gregory Moe: Prospective buyers are “driving to affordability” in Lewis and Mason counties.

Specific regulations weren’t discussed, but panelists touched on the gopher as well as regulations that encourage urban density and slow the process for those who would like to build in rural areas.

The lack of inventory has turned the local housing market into a seller’s market, Adams said. The inventory of single-family residences for sale is around three months, which is outside the range of what is considered a healthy balance between buyers and sellers. That range is four to six months.

Single-family sales rose 12 percent last month and the median price jumped 10 percent in the county last month, according to Northwest Multiple Listing Service data.

When land and prices get too high, sales fall, Bergford said. Sales have fallen 17 percent in the Northeast and 13 percent in the Midwest, and that trend will eventually show up in the Northwest, he said.

Although Wednesday’s summit was about housing, politics wasn’t far below the surface.

“(Regulations) are being forced through public policy at the (Thurston County) courthouse to force people into urban areas,” said Gary Edwards, a Thurston County Commission candidate and former Sheriff. “It’s like a Communist move as far as I can see. I’m just letting you know where I’m standing,” he added, eliciting laughs from the audience.

There wasn’t much in the way of an alternative viewpoint on Wednesday, and Olympia architect Ron Thomas, who moderated one of the panels, came to the defense of panelist Veena Tabbutt of the Thurston Regional Planning Agency, saying she was not in a governing position but assesses trends.

Thomas struck a note of balance at the end of his moderated discussion, reminding the audience about the importance of sales, resales and housing market activity, but also about quality of life and the environment.

This story was originally published March 23, 2016 at 4:22 PM with the headline "Thurston County real estate experts raise concerns about regulations."