“Lone Eagles” Change Landscape of American Workforce

A new national trend highlighted in Forbes Magazine discusses the increasing numbers of Americans gravitating towards working from home. The use of technology offers options to many employees and business owners. In addition, independent contractors and consultants may maintain flexibility in where they live due to the additional teleworking opportunities.

Phil Burgess, president of the Denver-based telecommuting think tank Center for the New West, terms these employees “lone eagles,” as they are able to operate without the traditional brick and mortar confines of a business. In the Forbes article, Joel Kotkin and Wendell Cox note that the number of workers telecommuting has grown 1.5 times faster in the past decade. Not surprisingly, cities with high levels of technology-related companies have large populations of employees who work from home. Yet, even outside of those perimeters, this trend continues throughout the country.

A few points correlate directly to the Durango lifestyle. Primarily, this ability gives the opportunity for more people to consider living in Durango. Historically, many were unable to live in Durango if they did not work in or around the town, or if they were not retired. Now, however, the use of technology allows a person to consider living here, but working for a company located elsewhere. A person could also operate as an independent contractor or work on a part-time basis. Running a small business would work well with the use of technology.

The article also states, “Many of the areas with the fastest growth in the number of self-employed people, notes EMSI is in small, somewhat isolated communities”. In many ways, Durango fits this category, as we are not located right outside a large metropolis.

Furthermore, research indicates a growing number of Baby Boomers are embracing this technological lifestyle. As they look to live in desirable places, they desire to maintain the ability to work as well. We know many consider Durango a retirement location for at least part of the year, if not full time.

Overall, we expect this lifestyle to continue to increase in Durango. As the world continues to increase the centrality of technology, the flexibility will inherently follow that. With continued flexibility for working remotely, the appeal will continue for all stages of life. Young families have more options to pursue careers, Baby Boomers may slowly embrace retirement, and our Fort Lewis College graduates will be able to continue the lifestyle they enjoyed while in college.

See the Forbes article: http://www.forbes.com/sites/joelkotkin/2014/02/27/lone-eagle-cities-where-the-most-people-work-from-home/

New Coffee Shop First on North Side of Town

Taylor and Sage Anderson own and operate 81301, the newest Durango coffee shop. The coffee shop has several unique qualities we enjoy.

The location of the shop, at 3101 Main (next to Zia Taqueria), is the first sit-down coffee shop on the north end of main. It features a pour over coffee brewing style, where water is slowly poured over coffee beans to maintain the maximum flavors. They also roast all of their coffee on site in the “Roasting Lab.”

81301 features a different type of coffee each day, and we love the taste! Taylor and Sage learned the nuances of coffee from Sage’s parents, who have worked in the coffee business for 20 years in Winterpark.

Beyond the coffee, the atmosphere of the coffee shop and some of the unique features make it stand out. The open seating is welcoming. They also have a commitment to ministry, especially True Elevation Wilderness Ministry. Last week they hosted a fund raiser for True Elevation that raised over $3,000, which is the most True Elevation has ever made at an event. They are open to Bible studies and small groups meeting in the coffee shop. They even buy coffee drinks for a few people in ministry as they meet at 81301.

We love to see a new coffee shop on that side of town, as well as the community involvement with which they run the business. If you haven’t had a chance to visit 81310, check it out!

HERS Ratings and Green Movement Important for Home Resale

Energy efficiency, building green, and reducing our carbon footprint are all technical jargon we hear tossed around these days. We know this overall concept is important, but do not always know where to start, or how improving our homes in these ways benefits us. While substantial amounts of information exist, the below will cover some of the basics of green energy, and how to implement in a home.

From a technical standpoint, homes are given a HERS score—which stands for Home Energy Rating. This rating is conducted by a certified home energy RESNET (Residential Energy Services Network) rater. The index is based on a score of 100—the lower the number, the more energy efficient the home. The test compares a home to a similar-sized home for accurate comparison.

According to RESNET,

The U.S. Department of Energy has determined that a typical resale home scores 130 on the HERS Index while a standard new home is rated at 100.

• A home with a HERS Index Score of 70 is 30% more energy efficient than a standard new home.
• A home with a HERS Index Score of 130 is 30% less energy efficient than a standard new home.

So what is the value in implementing these trends? From a resale perspective, energy efficient features in a home appeal to buyers. The overall focus of the next generation is to minimize our carbon footprint and be conscience of the environment. The more energy-efficient a home, the more it is marketable to potential buyers.

Additionally, energy efficiency lowers costs. When a home owner strategically focuses on lighting, heating, cooling, and any leaks of air in a home, the resulting efficiency saves money. These improvements directly impact the bottom line of home ownership expenses.

The below areas are taken into consideration with a HERS test (from RESNET):

·         The amount and location of air leaks in the building envelope

·         The amount of leakage from HVAC distribution ducts

·         The effectiveness of insulation inside walls and ceilings

·         Any existing or potential combustion safety issues

Other variables that are taken into account include:

·         Floors over unconditioned spaces (like garages or cellars)

·         Attics, foundations and crawlspaces

·         Windows and doors, vents and ductwork

·         Water heating system and thermostats

By obtaining a HERS rating, homeowners may begin the process of improving their homes and saving money. While not all of these improvements need to be made, even minor changes will impact the current homeowner, as well as future resale value of a home. This is a win-win situation: we can save money and reduce our carbon footprint. These changes directly correlate to the resale value of a home.

To obtain a rating, contact RESNET: http://www.resnet.us/

Information for this blog from:

http://www.resnet.us/hers-index

http://www.resnet.us/library/index-score-can-help-sell-home/

http://www.resnet.us/library/benefits-of-home-energy-rating/

Local Athlete Sets Example in Sports and Life

Recently, local Durango hero athlete Ned Overend won the National Fat Bike Championship in Wisconsin. While this is a newer sport, we are once again impressed with Ned and the reflection he is as a citizen of Durango.

Continually, Ned leads by example in his lifestyle and character. He is a personal example of how to strive to be our personal best in our areas of interest.

In this newer sport, cyclists ride on snow—a feat that would have been difficult prior to the use of these bikes. As the Durango Herald article notes, several considerations must be made when preparing for these races. The clothing and tire pressure choices matter greatly in the varying terrain and levels of exertion needed.

What we find exemplary is that Ned is 58, and not only embracing a new sport, but winning, as well. He does not let age or other excuses stop him from taking on a new challenge. As he notes in the Durango Herald article, “I train hard. I train year-round, and my body still responds to that with improved fitness.”

This example—that hard work and dedication pay off—applies to many areas in life. Whether a person focuses on business, relationships, or sports, we love this mentality. We should all strive to integrate this approach in our endeavors. This is an excellent reminder that success follows hard work.

Thanks, Ned for the reminder and inspiration, and the example you set as a person, athlete, and resident of Durango.

Check out the Durango Herald Article:

http://www.durangoherald.com/article/20140313/SPORTS05/140319790/Fresh-sport-familiar-winner-

Renting VS Buying

Renting vs. Buying? That is like asking Coke or Pepsi—everyone has a different opinion. Recently, this topic has made national attention. According to a recent Forbes article, Trulia’s economist Jed Kolko reports that buying is still cheaper than renting in many US cities.  Of course, these numbers will vary by location, but the overall report leans towards buying.

As mentioned, this topic becomes cyclical—higher mortgage rates create more difficult home purchases, and higher monthly payments. However, in locations that have low rental inventories available, the supply and demand cycle drives rent prices higher.

The National Association of Realtors states the following in their commercial real estate outlook news release:

"The apartment rental market – multifamily housing – should see vacancy rates edge up from 4.0 percent in the first quarter to 4.1 percent in the first quarter of 2015, with additional supply helping to meet growing demand. Generally, vacancy rates below 5 percent are considered a landlord’s market, with demand justifying higher rent."

Clearly, the tide may be slightly changing, but the national trend still lends itself to a landlord’s market.

So how does Durango rank? According to the Durango Herald, Durango rentals are approaching $1,000, as compared to just over $700 in 2005. This increase is partially due to the lack of multifamily projects built during the economic downturn. We have had our town’s population increase, but have not continued to build rental properties to meet that growing need. Without as much supply, the demand drives the rental prices higher.

Additionally, mortgage interest rates are still at a historic low. Even with some increase in 2014, the rates remain well below some of the national past trends.

As mentioned at the beginning of this article, everyone has a different opinion on this topic. We ultimately believe buying still makes more financial sense overall. However, a few factors should be considered.

Primarily, the overall length of time in a home makes a difference in profitability. In general, we recommend considering a 5 year length of time for primary home decisions. Typically, if we are attempting to buy and sell within that time frame, the return on our investment will be more difficult. Of course, life transitions and exceptions occur, but the overall plan should be a solid length of time in a location.

Additionally, buyers should remember the responsibilities of owning a home. Maintenance should be factored into the decision to purchase a home, as well as the commitment made to monthly mortgage payments and insurances.

If these factors cause a buyer to feel wary, then renting may be the correct route. However, for most of us, we have a desire to own a home. The freedom to make decisions in regards to a home’s look and feel offers an intangible satisfaction. Most people buy homes for life stages—first home married, the home to raise kids, then a retirement home. When considering purchasing for these lengths of time, homeowners oftentimes make a profit when they sell their homes due to the equity in them. In many cases, the sale of a home may assist with retirement income or for many, the proverbial "nest egg".

Durango is a desirable place to live. Home values should appreciate over the next several years, and in my opinion, they will average higher than the national average. Following the great recession, our home values are back in line with long term inflation & appreciation.  Historically, over long periods of time, homes in Durango have increased in value more than 5% per year. With mortgage rates still lower than much of our history, we are confident home ownership makes both financial and logical sense.

For further information, refer to the below links:

http://www.forbes.com/sites/trulia/2014/03/05/buying-a-home-is-now-38-cheaper-than-renting/

http://money.usnews.com/money/personal-finance/articles/2013/12/13/renting-vs-buying-a-home-which-is-smarter

http://durangoherald.com/article/20140202/NEWS04/140209991/-1/taxonomy/Average-Durango-rent-approaching-$1000-

http://www.realtor.org/news-releases/2014/02/commercial-real-estate-outlook-positive-but-moderating

Tourism Brings Vibrancy to Downtown Durango

 As spring approaches, this is the time of the year we start seeing an influx of tourism. Starting with skiers on spring break, we see a fairly steady stream of visitors from now until summer.

Sometimes locals have a tendency to complain about a more crowded town with more pedestrians and difficult parking. However, tourism is such a vital part of our commerce and economy in Durango, and we are so thankful for the part it plays for so many of our businesses.

From restaurants to hotels, from shops to outdoor adventure companies, everyone benefits from having more people in town.

As a town, Durango has really increased the overall community effort to promote tourism. The Downtown Durango area has focused on creating events to bring visitors back. Such events include the Taste of Durango, the Durango Wine Experience, the Iron Horse bike race, Fiesta Days, Snowdown, and the list goes on. Of course other events, such as the Motorcycle Rally and Music in the Mountains create additional opportunities to visit Durango.

Along with the events, Durango has truly improved its overall experience. We offer a mixture of restaurants—local traditions and gourmet dining. We also have art galleries and all types of shops downtown.

We are so proud to live in this town and enjoy all it has to offer. We are also grateful for the visitors who come to Durango—they help boost the economy and encourage the continual enhancement and improvement of our town. In many ways, the tourism in Durango keeps our businesses thriving. With all we have to offer, it comes as no surprise that visitors would return multiple times. So as the town starts to feel more full and crowded, we will remember all of the positives tourists bring to our town, and gladly welcome them.

Turn of Market Expected in March and April

This week we have received the total residential sales numbers in La Plata County through February, as noted on the chart. These numbers indicate declines in the first two months compared to last year. As noted in previous blogs, this could be due to the economic environment and government shutdown in November. Many of these closings reference properties under contract in previous months. Additionally, the winter months tend to be slower than other times in the year. 

Typically, January and February do not dictate the state of the market for the course of the year. Generally we have a better gauge once we are through March and April, as they are better representations of an annual market. As it stands now, we are currently seeing stronger activity in the marketplace. This activity should come to fruition and create more sales in the next couple of months.

As of March 5, there are 114 residential properties under contract in La Plata County.  Most of these contracts are likely scheduled for closing in March & April, and of course, some will fall out, but we will also continue to have new contracts for April. Compared to 2013’s totals of 140 sales in March & April, we have reason to believe 2014’s results for these months will be stronger than last year. While we acknowledge not all of these properties will close in the next two months, the excellent momentum creates excitement for what is ahead.

As a result of these numbers, we make a few educated predictions:

1)   Median sales price should recover in March and April. Although the current median reflects a lower number than 2013, the shortage of inventory in and around Durango should drive the median price up for homes in the more affordable price ranges.

2)   Residential sales should increase in March and April. As noted, the high activity levels and number of properties under contract lend strong case to an increase in residential sales.

We are about to enter the spring selling season. As much of the country recovers from extreme weather conditions this winter, we are confident that the spring and summer season will yield high activity levels and transactions.