Published May 2001

County housing market 'still strong'
Broker Vern Holden reflects on state
of industry, challenges ahead

By John Wolcott
Herald Business Journal Editor

For Vern Holden, a residential real estate career has been a rewarding one. And his work continues to be rewarded in a market that refuses to weaken despite the slowing of the national economy.

Holden, an owner or partner in four Windermere real estate offices in Snohomish County, said March was his best month in the 12 years he has been a real estate agent.

"The market is still strong, as it has been the last five or six years. I don't know when it's going to stop. We'll probably see a correction in the real estate market at some point. We thought this might be it this year, and it still could be. But if there's a lag anywhere, it certainly hasn't caught up with us," he said.

Some of the reasons for the strong market are obvious, he said.

"I believe our area is still one of the most desirable places in the country where people want to live. Our economic base is far more diverse than it used to be. Interest rates are low. And most people can still save $100,000 by buying a home here rather than in King County," he said.

Also, a lot of people have accumulated so much equity in their homes that they are tapping that value by buying down, moving up or simply refinancing their homes, all of which helps to keep the market active, he said.

"If Boeing does close its Renton plant and move work to the Everett facility, I think north county will be the next explosion in the housing market. With average homes priced at $375,000 in Bellevue and $230,000 in south Snohomish County, buying in north county will be very attractive. People will prefer to commute from Stanwood, Camano Island or Arlington than from south county. If that happens, it will have a major impact on business development, too," he said.

What challenges does Holden see ahead for the county's housing market?

Growth management restrictions, for one.

"People are already paying $450,000 for a home on a 4,000-square-foot lot, something you couldn't imagine before. Now it's common. The Growth Management Act has caused high-density housing within its boundaries. Developers still have to make their profit margin, so you have behemoth homes on small lots. People buy because often that's all that's available," Holden said.

Other issues include providing adequate sewer, water and road infrastructure; the new Shoreline Management Act that will "virtually stop all development within certain boundaries"; and salmon protection restrictions.

Despite those concerns, Holden believes real estate careers are still among the best choices in today's business world.

"We're finding that more and more young people are choosing real estate as a career. It used to be real estate agents were a lot of retirees, spouses and those looking for a second income. Now, more people are making it a career. You can make as much money as you want to if you put your mind to it and prepare for it," Holden said.

"But I've learned from interviewing more than 3,000 people for real estate jobs over 12 years that you have to be motivated by more than money to be successful. I love what I'm doing, but I know you have to approach this as a business. There's an old adage in the real estate world — if it's too easy to get into it, then it's too easy to fail and too easy to get out of. We want people who will stay," he said.

Even with Windermere's training programs and a positive attitude toward real estate education, it takes two to three years for agents to develop into polished professionals because the business is far more complicated today than a decade ago, he said, but the wait is worthwhile.

Holden's own career began in 1989 when he opened the Everett Mall Way Windermere office in south Everett after working 15 years in the title and escrow business in King and Snohomish counties with TransAmerica Corp.

In 1995, he bought Windermere's Mill Creek facility, his present office in the North Creek Business Center at 180th St. SE and the Everett-Bothell Highway. Later, he partnered with Will McMahon to operate the south Everett office on 19th Street near Costco.

In 1996, he started the Lake Stevens office with Maribeth Hutchings and Jim Rowley, who is also the owner of the Marysville Windermere office.

There were only a few Windermere offices in Snohomish County when he started in the business. Today, there are 11 in the county, with about 50 agents working as independent contractors in each of the six offices in south Snohomish County plus a couple hundred agents in the other five offices, Holden estimated.

Holden also set up a mortgage financing business a few years ago — Windermere Mortgage Services — in partnership with HomeStreet Bank, when it was still Continental Savings; established The Escrow Group by partnering with Imperial Escrow in King County; and joined 20 other Windermere brokers to buy a half-interest in Commonwealth Land Title Association, a firm based in King County.

"Now, we're a one-stop real estate service," he said, "offering real estate, mortgages, escrow and title services."

Holden is also a member of the board of directors of the Northwest Multiple Listing Service, the largest such service in the state. Like individual real estate offices, NWMLS has embraced technology, setting up a master directory of homes on the market that is accessible through the Internet, searchable by both the public and professional agents.

"Technology growth has been amazing. Ten years ago I had two computer terminals in my office that were hooked to the database at the NWMLS. Today I have 10 personal computers, plus scanners, cell phones, pagers, laser printers and digital cameras. Technology has entered the real estate profession in a big way," he said.

To contact Holden, call 425-481-6666, Ext. 202, send e-mail to vholden@windermere.com or visit Windermere's Web site, www.windermere.com.

Related: Windermere a leader in home sales,
community service

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