Seattle Washington Building Expert Directory

This New Indicator Shows There's No Bubble Forming in U.S. Housing

April 01, 2015 — Michelle Jamrisko and Nina Glinski – Bloomberg
When a parking space in Manhattan costs $136,000 and only 15 percent of San Francisco's homes are affordable for the middle class, it's easy to worry that another housing bubble is around the corner. The vast majority of American homeowners have little to fear: A new gauge from Nationwide Insurance in Columbus, Ohio, suggests the national market is in its best shape since 2001 and there's no reason to fear a national downturn, no less a bursting bubble. In its first data release, the national Leading Index of Healthy Housing Markets rose to 109.8 in the fourth quarter. Values greater than 100 indicate a robust industry. The index uses local data in 373 metropolitan statistical areas that are underlying drivers of the housing market, including measures on employment changes, demographics and the mortgage market. Reprinted courtesy of Michelle Jamrisko, Bloomberg and Nina Glinski, Bloomberg Read the court decision
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Convictions Obtained in Las Vegas HOA Fraud Case

March 19, 2015 — Beverley BevenFlorez-CDJ STAFF
The Las Vegas Review-Journal reported that a jury “convicted four defendants charged in the massive scheme to take over and defraud homeowners associations.” Convicted defendants included former Benzer attorney Keith Gregory, Benzer’s half-sister Edith Gillespie, Salvatore Ruvolo, and David Ball. According to the Las Vegas Review-Journal, “Prosecutors contended the multimillion-dollar scheme was carried out between 2003 and 2009 by former construction company boss Leon Benzer and the late construction defects lawyer Nancy Quon. Benzer has since pleaded guilty. Quon committed suicide in 2012 under the weight of the high-profile investigation.” Read the court decision
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America’s Factories Weren’t Built to Endure This Many Hurricanes

November 05, 2024 — Brooke Sutherland - Bloomberg
America’s factories aren’t built for the current cascade of extreme weather events. Dozens of industrial sites were in the zone of impact as Hurricane Milton slammed into Florida’s West Coast this week, including several concrete plants, speed boat manufacturing operations and facilities owned by Honeywell International Inc., Johnson Controls International Plc, General Electric Co. and Illinois Tool Works Inc., among others. Meanwhile, a Baxter International Inc. facility in Marion, North Carolina, that makes 60% of the intravenous fluids used in hospitals around the country was shuttered because of damage from Hurricane Helene just two weeks ago. Mines responsible for producing more than 80% of the world’s supply of commercial high-purity quartz in nearby Spruce Pine were also affected by severe flooding, raising the risk of disruptions to semiconductor production, which relies on the material. Read the court decision
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Reprinted courtesy of Brooke Sutherland, Bloomberg

Avoid a Derailed Settlement in Construction

March 28, 2022 — Patrick Barthet - Construction Executive
More and more construction cases are settling because lawyers know juries can prove to be unpredictable. The litigation process, as well as any actual trial, can be stressful, expensive and quite lengthy. Settlements are, for the most part, private while suits are public. Current reports find more than 90% of civil cases filed in state circuit courts are disposed of before trial. When that doesn't happen, things could go very poorly, as the case below illustrates. The Case Adam was seriously injured in a collision with a dump truck owned by Bang and driven by Tomas. While suit by Adam against Bang and Tomas was pending, Adam suggested they settle by having Bang pay him. Upon receipt of the offer, Bang's lawyer reached out confirming that his client was okay with the settlement amount but wished to add that the settlement also include the satisfaction of a lien filed by Adam's workers' compensation carrier. Adam's attorney refused that additional request, but that didn't stop Bang's lawyer. Based on the fact that Adam had agreed to the settlement amount, the lawyer filed a boiler plate notice of acceptance of settlement and had Bang issue a settlement check payable to Adam in the amount Adam had requested. Adam remained unwilling to compromise. He continued to resist the modified terms, which added satisfaction of the worker’s compensation lien. Bang then filed a motion to enforce settlement, arguing that since there was agreement on the settlement amount, Adam was required to do the deal. Reprinted courtesy of Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Barthet may be contacted at pbarthet@barthet.com

Mortgage Bonds Stare Down End of Fed Easing as Gains Persist

October 29, 2014 — Jody Shenn – Bloomberg
The end of the Federal Reserve’s third round of bond purchases is proving to be a non-event for mortgage-backed debt. That’s partly because even though the U.S. central bank won’t be adding more home-loan securities to its balance sheet, policy makers will still be buying enough to prevent its holdings from shrinking. Those purchases are having a greater impact as the pace of net issuance slows to a quarter of the amount last year amid a weaker property market. The $5.4 trillion market for government-backed mortgage bonds is defying predictions for a slump tied to the wind-down of the Fed stimulus program, whose completion economists predict will be announced today. Yields on benchmark Fannie Mae (FNMA) notes have shrunk 0.14 percentage point this year relative to government debt, narrowing to within 1.09 percentage points of an average of five- and 10-year Treasury rates. Read the court decision
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Reprinted courtesy of Jody Shenn, Bloomberg
Ms. Shenn may be contacted at jshenn@bloomberg.net

California Court Confirms Broad Coverage Under “Ongoing Operations” Endorsements

December 01, 2017 — Kevin C. Brantley - Payne & Fears
A California Court of Appeal has confirmed that additional insured endorsements (“AIE”) granting coverage for liability arising out of a named insured’s “ongoing operations,” and in effect during those “ongoing operations,” do not require that the liability arise while the named insured is performing work. McMillin Mgmt. Servs., L.P. v. Financial Pacific Ins. Co., Cal. Ct. App., November 14, 2017, Case No. D069814. In McMillin, a construction defect insurance coverage action, Lexington Insurance Company argued that McMillin had no liability to homeowners until after their homes closed escrow; thus, McMillin did not face liability while the named insureds’ work was ongoing. The Court of Appeal rejected Lexington’s argument, finding that the “ongoing operations” AIEs provide only that McMillin’s liability “be ‘linked’ through a ‘minimal causal connection or incidental relationship’ with [the named insureds’] ongoing operations.” (internal citations omitted). The Court reasoned that Lexington had not established that all of the damage in the underlying action occurred after the named insureds completed their work, thus Lexington had not established as a matter of law that there was no potential for coverage for McMillin under the policies. Read the court decision
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Reprinted courtesy of Kevin C. Brantley, Payne & Fears
Mr. Brantley may be contacted at kcb@paynefears.com

Margins May Shrink for Home Builders

November 06, 2013 — CDJ STAFF
Home builders are worried that the rising prices of new homes might not rise enough and be caught by the rising costs of building them, cutting into the profit margin. “If builders say the trajectory of margins is beginning to peak, then in a cyclical business, people tend to go from thinking the best to thinking the worst,” Stephen Kim, a Barclays analyst told the Wall Street Journal. As of the end of October, the U.S. Home Construction Index was 21% below its highest point in 2013, set back in May. Margins are still over those of last year. Meritage Homes saw a gross margin of 22.8% in 2013’s third quarter, when the same quarter in 2012 had a gross margin of 18.6%. Steven Hilton, the firm’s Chairman and CEO, predicted little or no growth and a decline toward 20% or 21%. On the other hand, with margins at 20.6%, Ryland Homes sees itself at a normal point. Larry Nicholson, the President and CEO of Ryland, said “there’s not a lot of room for it to grow.” Read the court decision
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Home Prices in 20 U.S. Cities Kept Climbing in January

April 06, 2016 — Victoria Stilwell – Bloomberg
Home values in 20 U.S. cities kept climbing in January, a sign the limited supply of available properties may push prices out of reach for some buyers. The S&P/Case-Shiller index of property values increased 5.7 percent from January 2015, following a 5.6 percent gain in the year ended in December, the group said Tuesday in New York. That matched the median projection of 26 economists surveyed by Bloomberg. Nationally, prices rose 5.4 percent year-over-year. Home values that are rising more quickly than incomes could pose a problem for the housing recovery, as they put purchases out of reach for first-time and low-income buyers. A wider selection of available homes will be needed to help keep price increases in an accessible range. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg

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