PORT ANGELES — Real estate prices here aren’t riding a boom.
They’re climbing out of a bust.
While many parts of Washington and large portions of the country are atop what some economists call a “bubble,” Port Angeles real estate sellers say they’re simply returning to normal.
Dan Gase, owner of Coldwell Banker Uptown Realty and president of the Port Angeles Chamber of Commerce, says the Port Angeles region — roughly from Joyce on the west to McDonald Creek on the east — suffered multiple economic blows during the 1990s. They included hard hits to the timber and fishing industries and closure of the Rayonier pulp mill in 1997.
“Our star wasn’t shining,” Gase says. “The local economy is now over its cold. But we’re not even close to catching up yet.”
Rob Robertsen, director of Clallam County’s Department of Community Development, agrees:
“I think we’re just playing catch-up with the rest of the county.”
Westport’s contribution
Gase credits Westport Shipyard Inc. on Marine Drive and its 100 — eventually 200 — new jobs for turning things around, followed by Port Angeles Hardwood LLC’s alder and maple sawmill now under construction on the city’s west side.
“I see Westport as sort of the turning point,” says Dave Ramey, operations manager at Coldwell Banker Uptown.
“I think that’s when things really started cooking.”
Closing the Hood Canal Bridge graving yard didn’t cause an instant’s pause.
Terry James, Coldwell Banker’s director of property management, says he rented properties to employees of Kiewit-General Construction Co., the former graving yard’s contractor.
“They’ve since bought their houses and probably sold them at a killing,” he says.
Demand exceeded supply
Terry Neske, owner of Windermere Real Estate in Port Angeles, says the price hikes started when demand exceeded a small supply of homes.
“We got caught with our pants down,” says Neske, due to the recession and to rising development costs caused by environmental regulations.
It currently costs about $20,000 to develop a lot for a home; $30,000 if the developer must clear it and install water, sewer and electricity lines.
“The scarcity of property drove prices to a point where builders can afford to build,” says Windermere broker Quint Boe, noting that a developer can grow the tax base of a $250,000 property to $8 million.
