RSSRedlands Recession
This home, currently under construction by Zag Built, is at 208 Roundup in Independence Ranch, where Mike Zagrzebski has built about a dozen other homes that started as specs and became custom homes. This home has almost 5,000 square feet and is listed for $524,000.
This home at 2057 Sidewinder in Independence Ranch, was built in 2006. It has four bedrooms and three and a half baths in 3,311 square feet. Toni Heiden with Heiden Homes is listing the property for $510,000.
Even though her coffee shop is in a busy shopping area off Broadway, has a sign on the building and a well-lit open sign in the window, owner Kathryn Luther said most people don’t realize it’s there. Or they assume it’s attached to Garfields, the restaurant next door.
This house in Fairway Villas near Tiara Rado was built by Randy Scott, who has built three homes in the neighborhood. There is currently an offer on this home, and as soon as it closes, Scott will sign the papers on another lot and begin building another home.
The original developers of Red Rocks Valley near South Camp and Monument Road in the Redlands were victims of bad timing. The property is now owned by Alpine Bank, which is working with the city planning department to get it ready to begin marketing again.
Although the Bicycle Studio is tucked away in a strip mall behind the Albertsons store on Power Road, neither the location nor the vacant spaces next to it have been a detriment. Owner John Weirath says about 70 percent of his business is by appointment.
Like many areas across the Grand Valley, the Redlands has experienced a slowdown in residential building and commercial activity in the last few years. At least one expert thinks the recession has taken a bigger toll on the Redlands, at least in terms of housing values.
“The drop in the higher end properties is probably more significant there than anywhere else in the valley,” said Toni Heiden, owner of Heiden Homes Realty, who said that some high-end Redlands properties are selling lower than she’s ever seen them.
“Values in the Redlands used to be higher than elsewhere,” Heiden said. That’s good news for homeowners who have always wanted to move to the Redlands, since values in the Redlands are now fairly comparable to similar homes in other parts of the Grand Valley.
That’s small consolation to people who may have purchased in the Redlands when prices were high.
Heiden is the listing agent on a property in Independence Ranch that was last purchased in July 2008 for $650,000. The former owners received a job transfer that included a relocation package. The relocation company is now trying to sell the home. Heiden, who is the third real estate agent to list the property, is currently listing the property for $510,000.
Although spec building has all but stopped in most neighborhoods in the Grand Valley, builder Mike Zagrzebski with Zag Built has been building new spec homes in Independence Ranch in the Redlands for more than two years.
“Most of them sell prior to completion,” said Zagrzebski, who has built around a dozen homes in the neighborhood.
“I’m getting prices down to close to foreclosures — spec houses have to cost what a foreclosure would cost,” he said. Unlike foreclosures, which may come with cosmetic fixes or neglect, Zag Built homes are brand new, and as an added bonus, are all Energy Star-rated, so buyers will have a good indication of future utility bills.
“I’m giving great value for their money,” said Zagrzebski.
After a few years of stagnation, homes are beginning to sell again in the Redlands Mesa Golf Course Community. Last year’s Redlands Mesa Parade of Homes entry sold in late June and another home went under contract, with a closing scheduled for July.
“We have noticed a definite pickup in activity in the last few months,” said Craig Huckaby, broker associate with Bray Real Estate. “We had a guy in here yesterday inquiring about estate lots.”
The estate lots at Redlands Mesa Golf Course start at $700,000.
Huckaby also said he’s seen more of an interest in higher priced homes in the Redlands. Currently, he has a listing in the Sanctuary for $895,000 and has had 15 or 16 showings.
“There’s about a three-year supply of homes between $700,000 and $900,000,” said Huckaby, who feels optimistic that 15 or 16 showings in 80 days indicate the house is priced correctly and will sell in a timely manner.
Other new neighborhoods are also seeing slow growth. Homes are selling at Fairway Villas near Tiara Rado, a neighborhood one real estate agent refers to as a “micro market” due to its unique amenities.
The golf course patio homes may not appeal to everyone, but they appeal to empty nesters and others who want the convenience of living near a golf course, but don’t want to be saddled with a yard to maintain.
Because the Redlands has traditionally been one of the more expensive areas in the Grand Valley, young families haven’t been moving to the Redlands like they’ve moved to the east end of the Grand Valley or to Fruita. That’s caused enrollment in the Redlands area schools to drop. Dropping enrollment caused Mesa County School District to think about closing one of the smaller schools on the Redlands, Scenic Elementary.
Parents, however, took exception to the idea.
“We’re getting ready to form a committee to meet in mid-August,” said Jenny Hall, the president of the Parent Teacher Organization. “We’re trying to stay ahead of the ball.”
The district hasn’t made a decision one way or another. They’re simply starting a conversation about possible decisions that will have to be made in order to meet the budget. The potential closure wouldn’t take place until school year 2012-‘13.
“It’s a non-event at this point in time,” said Jeff Kirtland, spokesman for the school district. Kirtland said that although the district’s budget has been cut by about 20 percent, enrollment has only dropped one percent. Some areas, such as the east end of the Grand Valley or Fruita, are faced with overcrowding schools. Redistricting may be an option, but it also may create more problems, affect more students and ultimately cost more money.
Multi-family housing, which could possibly attract young families, could be an answer to dropping enrollment on the Redlands, but there isn’t much multi-family housing currently available. Casas de Luz, a multi-family project near Redlands Mesa Golf Course, is currently in the planning process with the city of Grand Junction, but developers Mansel Zeck and Mike Stubbs aren’t certain that the timing is right to take it further along the development road.
Red Rocks Valley, another development with a multi-family phase, was stalled in the recession. Alpine Bank took ownership of the property in April and is working on the infrastructure.
“At this point, we’re still working with the city planning department,” said Aaron Miller with Alpine Bank.
While some developments and commercial activities have stalled in the area, one entrepreneurial woman decided the timing was right to start a business. The Wild Flour, a coffee shop and bakery on Broadway next to Garfields, opened in 2010.
“It’s taken awhile for people to know I’m here,” said Kathryn Luther, the owner. “But I made it through the first year. I’m really feeling a turnaround.”
The Bicycle Studio, another Redlands business that opened in the midst of a poor economy, is also doing well in spite of its almost hidden location on Power Road. It’s a destination shop and depends more on custom fittings and sales than traditional walk-in traffic.
“The location has worked out well,” said owner John Weirath. “We’re located near the bike trails. We can take customers out to the Lunch Loop for bike fittings.”
Although housing values have dropped in the Redlands, the amenities that make it such a great place to live – the golf courses, the views, the proximity to the Colorado National Monument and popular biking area – aren’t going anywhere. That could make this one of the best times ever to buy a house in the Redlands.
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