Rotary Club of Bellingham Tattler - August 19, 2024
Tattler Reporter: Tom Grinstad
Tattler Editor: Catherine Riordan
Photographer: Sandee and Del VandeKerk
Steve Gray & Brad Burdick
Whatcom County Real Estate Market
Welcome
President Steve Ban opened the meeting with his usual mighty ring of the bell. The Paul Harris quote of the week is, “The greatest gift you can give someone is your time.” Steve gave several fine thoughts regarding the quote, basically saying you are affirming someone by focusing on them. For the first time in a long time there were no guests or visiting Rotarians at the meeting.
Guests:
Members on Zoom: Aaron Booker, Sandy McIntire, Loch Trimingham and Dick Tucker.
Visitors on Zoom: Chuck Snyder joined us.
Club Events and Committee Announcements
Jim Lemerond had a PowerPoint all prepared, but due to file size and other woes, it was unavailable. So, he was forced to improvise. He told us to picture all he was to say. Born, raised – probably an appropriate adjective – in farm country Wisconsin. He is proud of his blue-collar, working-class background. Jim started his post-high school education at a technical college. Then while working as a radiographer, he was asked to train others and discovered he liked teaching. So, he went up the educational ladder, while still working full-time.
Jim rose to heights in Wisconsin, and then got the opportunity to come to Bellingham Technical College as president. For him, tech school was the entry point to the middle class and upward mobility. He views his position here as one to afford a similar opportunity to the students of today. He finished with a short discussion of his family.
Welcome to the club, Jim!!
Upcoming Social Event:
Whatcom Museum History Sunset Cruise on Bellingham Bay with our own Brian Griffin.
Sign-up for September 3rd sailing before Brian retires after 16 years. Board the vessel at 5:45 and return at 8PM Sign-up here
Experience the rich history of Bellingham Bay up close! The cruise offers stunning views of parks, businesses, industry, and neighborhoods. You’ll sail past historic landmarks, shipyards, and vibrant harbor activities, including workboats, pleasure boats, freighters, and tugboats. Keep an eye out for harbor seals and water birds, too.
Brian Griffin will narrate the cruise, sharing his extensive knowledge of local history, along with current bay activities and trivia. Whether you’re a resident or a visitor, you’ll leave with a deeper understanding of the community.
Hands Across the Border
George Halsell asked for a show of hands for the Hands Across the Border on Friday, August 23 at 4pm. The registration has closed and sold out. But perhaps you could still get in there…
Brian gave a sterling book report on A Fever in the Heartland by Timothy Egan, which tells the story of the Ku Klux Klan and its meteoric rise in popularity in the 1920’s. A charismatic man with less than sterling morals used money and coercion to gain political power in the state of Indiana and then throughout the nation. One could draw parallels to the current political situation if one wanted. Brian noted that the Klan was active in Bellingham, despite the efforts of folks like J. J. Donovan (a member of this club a century ago).
The KKK became partially associated with the Christian conservatives. It made money from the sale of robes etc. and dues and fees. It then used this lucre to gain political influence. But all good things must come to an end. The leader, D.C. Stephenson, was hoisted on his own petard as it were and ended up in jail in disgrace. The KKK slipped from favor and by WWII was mostly forgotten.
Brian found it shocking to read how easy it was for hundreds of thousands of normal Americans to dress in the hoods and robes of the KKK. He related that as a boy he and a friend found evidence that the friend’s stepfather was once a member. The book is not fun to read, but maybe essential.
Weekly Payment Reminder
VENMO:
@RCOB- Bellingham.
Give Sandee a call if you need help. 360-734-5532.
CASH / CHECK:
Yes, we still take these and saving on fees is appreciated.
Prexy Steve had the duty to introduce the presenters of the day, Steve Grey and Brad Burdick, even though they really didn’t need any introduction. This dynamic duo tried to explain the realty market in Bellingham and Whatcom County. They started off showing the affordability ratio locally and comparing it to the nation. The affordability ratio (median home price to median income) here is 10.25%. How does this compare nationally you ask? In the sun belt – Houston Pheonix, Orlando the ratio is 2-3%. High ratios are: Seattle 7.2%, NY 8% and SF 9.6%. So, we are at the extreme end of the high range. What does this mean you ask? Well, it means that housing is at a premium here.
The pair promised to not put us to sleep with statistics. They wanted to explain the situation rationally and with deep insight. And for the most part, they succeeded. Steve noticed that a large percentage of houses were bought with cash. People bail out of really expensive cities, like Seattle, come to Bellingham, and pay cash because the homes are relatively cheaper here. But roughly ¾ of buyers still have to take out a mortgage. Our incomes are not at the level of the high-priced cities so our affordability ratio is high. He said there are three factors in the equation: interest rate, term of the loan, and loan value. Interest rates were down to as low as 2.6% at one time. In 2023 rates climbed to nearly 8%. For a $500,000 loan, the monthly cost zoomed up to $1,200. And that closed the door to a lot of people.
If buying a home is out of the question, what about renting? Brad showed rental rate figures. For a one-bedroom average rent is $1,550 / mo. A two-bedroom is $2,000 / mo. And a three-bedroom is nearly $2,600 / mo. High costs as well. A vacancy rate of about 2% ensures landlords full occupancy. The rental market is tough for renters. 46% of homes in Bellingham are rentals, higher than the national average. So, it is not surprising that when a $600k property comes on the market, home buyers are competing with investors to buy that property.
Another graph shows the sales price growth rate for the last ten years. Bellingham prices increased 237% with the county not far behind. That’s a phenomenal rate. And anecdotally this is causing folks to leave the area for more affordable places to live. But the population is still growing (at a reduced rate). We are in a restricted area: fenced in by water to the west, mountains to the east, an international border to the north and the Seattle metroplex to the south. The Growth Management Act restricts the amount cities can expand, so land becomes more valuable. Homes will become more townhouse-like, more dense development to accommodate the population.
Brad finished off discussing the settlement agreement of the national association of realtors, relating to fees and who pays for what. This is a nation-wide change that took place on 17 August this year. The guys did not get a chance to remark on other changes that are impacting affordability locally. This was an interesting presentation.
Closing:
The Prez, Steve rang us out a little over quitting time with a mighty peal on the bell and good wishes to all.
Brian Griffin - Book Review
Rick Kaiser - Music
Teri Treat - Invocation
Dawnlynn visits her Regiomontano Valle Oriente Rotary Club in Monterrey, Mexico
RCOB apparel, including polo shirts, dress shirts, vests and hats is now available. These are items that every Club member simply must have in his/her wardrobe! Besides looking great, Club members will be contributing to branding for the RCOB as well as supporting our Club's Foundation, which will receive part of the proceeds.
Click on the button below for the the clothing catalogue, with the Order Form on the last page. Fill out the order form, turn it into Vinson Latimore at a meeting or email a scanned copy to embroidery@choicesscrubs.com.
Book Review
