• The housing market, while foreclosures still exist, has reached its bottom in terms or average sales prices and transaction volume.
• Some markets may still experience some downward pressure during 2010 but the combination of reduced supply and increased demand will soon positively impact home prices.
• In the last 3 months in La Plata County, real estate transactions and sales dollars are up over the previous year.  This trend is also seen statewide and nationally.
• Single family homes in Durango have fared very well when compared to other markets with only a 8% decrease in home values from their peak in 2008.  The western US has experienced a 23% decline from their peaks while some markets like Phoenix or Miami have seen 40% and 35% respectively.  Of course these markets also had double digit appreciation.
• Air transportation (enplanements) in/out of Durango have risen significantly over the past two years and La Plata County Airport has become the “Regional” airport in SW Colorado.   Tourism and Mercy Medical Center have also been unaffected and provide a level of service not seen in other communities of Durango’s size.
• Interest rates continue to be at 100 year lows and when combined with low housing prices or construction costs at or near the bottom, a good buying opportunity exists.
• The one dark cloud still persisting is the credit markets and appraisal process.  However, Kogan Builder’s banking relationships can be of help in this area.

While the past year has not been pleasant for anyone, there is certainly a reason that Durango has fared better than most.  Our mountains, community and resources will continue to make Durango’s lifestyle appealing to many people.  Migration/population data indicate La Plata county’s growth over the next 5 years at 7,200 people.  

Overall, the housing market is recovering, interest rates have only one direction to go, inventories are beginning to shrink and upward price pressure on new construction and existing homes is around the corner.   We have already seen a 33% increase in lumber costs in the 1^st two months of 2010.  While we do not have a crystal ball, the cost of waiting could be quite high for those considering new home construction or the purchase of an existing home.  As always we are here to answer any questions you may have about the area and our company.

Scott Smith

CFO of Kogan Builders, Inc.

Lumber on the rise graph

If solar hot water or other green technologies like this interest you but you are unsure of their costs and how they may be installed on your current or new home please call us, we are happy to discuss all of your options in addition to all of the applicable tax credits in the Four Corners area.

Click here for the full article.

Also, if you’re planning on being downtown for the Snowdown Parade on Friday evening keep an eye out for our very own Alix Kogan, he is one of the Official 2010 Snowdown Parade Judges.

Have fun and see you out there !!!

There are several ways we can help our homeowners conserve water in their new homes, no matter what style or design is desired. Our trade partners and suppliers join us in making sure that comfort and convenience are not sacrificed for efficiency.

To plan for water conservation, we take a close look at how, what, and where water will be used in a house. Naturally, we think of the kitchen, bathrooms, and laundry rooms, but we also examine the use of water for irrigation and other outdoor needs.

Within each of those areas, we consider the appliances and fixtures. In the kitchen, for instance, dishwashers are far more water-efficient and energy-efficient than those of just a decade ago. By offering a wider range of cycles and cleaning modes, these appliances reduce the amount of water to the minimum needed for the job. Energy-saver cycles run for a shorter amount of time and with less heat.

Every kitchen also contains at least one sink and faucet pair, sometimes more in gourmet kitchens. New home owners can select low-flow and more durable faucets as well as self-contained hot water dispensers. Low-flow faucets dispense a lower volume of water without diminishing useful water pressure. Self-contained hot water dispensers save energy by delivering piping hot water without engaging the home’s water heater.

Bathrooms provide several opportunities to reduce water use. The engineering of low-flow faucets, shower heads, and toilets has improved the performance of these products to match or exceed that of the old, more wasteful designs.

Of all the water-using appliances, perhaps clothes washers have come the furthest in conservation design. Like dishwashers, they are engineered for a variety of cycles. Water level and temperature can be selected, depending on the type and volume of clothes being washed. Front-loading units, for example, allow homeowners to wash more clothes per load, thus reducing the number of loads (and water used) to get them clean. All machines have improved their per-load efficiency, as drum and agitation technology have advanced to do a better job with less water.

Finally, we often encourage homeowners to consider native and drought-tolerant landscaping for their new homes, which reduce the amount of irrigation water needed to keep them healthy and flourishing. Even with more traditional plant selections, the use of drip and in-ground irrigation systems is far more water-efficient than the use of a hose and sprinkler and will achieve a better result. More sophisticated rainwater collection and pump-irrigation systems can be an eco-friendly way for a homeowner to recycle water and to lower the use of potable (city-treated) water.

As with most features that affect the comfort and on-going costs of a home, higher performance standards are achieved through a partnership between us as a builder, in our design and the products and construction practices we employ, and our homeowners, as the users of those systems. Ultimately, the effective conservation of water depends on lifestyle choices that optimize the products and systems we install.

Contact Us to learn more about green building.

With prices and interest rates so good, some people, even those who are financially stable, are still choosing to “wait.”  Why is that?

Here are some of the reasons why people are waiting followed by some of the logic that this article brings into the picture.

Wait until the price drops more. Now suppose you save $30,000 on a given property if you wait for a seller to become more motivated. Now assume every quarter-point change in interest rates is roughly equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed loan. If the interest rate goes up even a quarter point,  any potential savings could be lost.

Wait until the property value of my home I need to sell comes back?How many years will it take to rebound? Is it worth it to get out at a loss, make a lateral shift in the market and invest in something that will appreciate faster? Is it possible that you could be waiting 8-10 years at a healthy appreciation rate to get back to that value? Another thing to keep in mind is that many people focus on perceived loss. If they paid $350,000 for the house and at one point is was worth $420,000, if they sell it today for $375,000 have they lost money? Many people feel that they could have sold for $420,000, thus selling at $375,000 would be a “loss.” Luckily in Durango many properties, while they are not valued as high as they were 2 years ago, often are still valued higher than when the homeowner purchased it.

Wait until the market hits bottom?  Since we don’t have a crystal ball, we need to use our best judgement on this one.  In Durango we know two things. 1. Prices have dropped during the last couple of years, following suit with the national market. They may drop more in the next year or even two. But this brings me to the 2nd thing we know about Durango. 2. Prices will eventually be on the rise again, most likely sooner than later. Ask anyone who lives here. Durango is a destination. We choose to live here because of the community, public schools, natural beauty and lifestyle. When people invest here they are investing in a lifestyle. People will be seeking out Durango for many more years to come.

Take a look at the full article from Business Week. Some interesting food for thought.

If you don’t buy a house now you are either broke or stupid.

There is a lot of uncertainty about remodeling, especially these days. The rules of the remodeling and decorating are different, given the economy. There’s no guarantee that a costly gourmet kitchen, luxurious master suite, or added garage will offer the financial payback you’d expect. 

At Kogan Builders we can help you decide what, if any, upgrades should be made to maximize your investment. We will look at variables like how long you plan to stay in the home, how much you plan to spend on the project and what materials you’ll be using. We can not only help you make cost-effective choices, but we can also point you in the direction of energy efficiency and sustainability.

If you are looking to upgrade your home, or make it more environmentally friendly for you and your family, ask us for a free remodel consultation.

http://www.realtor.org/rmohome_and_design/Articles/1001_costvsvalue_2009