Busy bodies

  • By Amy Rolph / Herald Writer
  • Saturday, July 16, 2005 9:00pm
  • Business

Snohomish County businesses that sell roofing, flooring, windows, lighting and other building materials are riding the wave of a nationwide housing boom, with sales escalating as high demand continues.

With mortgage rates dropping to a national average of about 5.2 percent, houses are being built at a rate about 1.8 percent higher than last year, the U.S. Department of Commerce said last month.

The increase is good news for Bill Weaver, president of Canyon Creek Cabinet Co. in Monroe.

Business is booming,” said Weaver. “We’re probably up 17 percent over last year.”

Canyon Creek conducts most of its business in the Pacific Northwest, but it sells cabinets as far away as the East Coast. Competition on a national and local scale hasn’t been much of an obstacle these days, Weaver said.

“All the competition is swamped,” he said. “I don’t think competitors are worried about competition. They’re worried about getting their work done.”

Despite fear that a surge of homebuyers will precede a bursting of the so-called housing bubble, the immediate future looks bright for local building material companies.

A total of 1,572 building permits were issued in Snohomish County during the first quarter of the year, an increase of almost 21 percent over last year’s numbers, according to a report released by the Washington Center for Real Estate Research at Washington State University.

Some of the most notable growth in the county happened in Monroe, where last year’s totals for approved residential building permits have already been exceeded. Seventy single-family home permits were issued from January through May of this year, and the city’s permit coordinator, Kim Shaw, estimated that about 20 more have been issued since then. Last year a total of 74 single-family home permits were issued.

“I think things will stay strong,” said Weaver, the cabinet maker. “Whether or not they will continue at this pace, I can’t say. But I don’t think we’ll see a bubble burst.”

Pat O’Day isn’t losing any sleep over bursting bubbles either. The owner of O’Day Glass and Window in Everett said his sales have increased about 25 percent since the housing market started picking up.

“We’ve been doing pretty good this year,” he said. “More houses mean there are more windows sold. There’s a lot of competition out there, but when there is more demand, there’s a lot less.”

But a large portion of O’Day’s contract work comes from the commercial sector, and he said he isn’t worried about a possible slump in the housing market.

Everett had issued 85 permits for single-family residences at the end of May, putting the city on track to issue 44 more permits than last year’s total of 160.

But the sale of new homes is just one factor leading to increased spending at local building material businesses. Home resales in the first quarter of 2005 were up 13 percent over last year for Snohomish County, according to the report released by Washington State University.

Everett-based flooring store End of the Roll is reaping the benefits of home resales. The store, which conducts about 80 percent of its business with individual homeowners, has seen a 20-percent increase in business this year, owner Terri Missler estimated.

“A lot of people are repairing their homes to sell because the market is so good,” she said.

With business booming, Missler plans to open another store near Bellingham in the next couple of years.

In the first quarter of this year, Snohomish County building material and supply companies have grossed about $100 million in taxable retail sales, according to preliminary figures released by the state Department of Revenue. The same quarter last year saw returns of about $89 million, almost 14 percent less.

But the housing market can’t maintain this pace forever, said Northwest economist Bill Conerly. The Oregon-based consultant said that as a whole, Washington’s housing market is at its peak and “holding at a heavy pace.”

Because increased construction in the Northwest has been the product of low interest rates instead of a legitimate demand for housing, he said a slump is inevitable.

“I think we have been building more housing than we need,” he said. “We have this big shift from rental housing to owner-occupied housing. We have built a lot of new housing units, and it’s not like we have a huge demand for housing of any kind.”

The result will be higher vacancy rates for apartments and rental housing, he said.

The timing of a fluctuation is hard to predict, but Conerly said housing sales nationwide will most likely start to drop later this year.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

FILE — Jet fuselages at Boeing’s fabrication site in Everett, Wash., Sept. 28, 2022. Some recently manufactured Boeing and Airbus jets have components made from titanium that was sold using fake documentation verifying the material’s authenticity, according to a supplier for the plane makers. (Jovelle Tamayo/The New York Times)
Boeing adding new space in Everett despite worker reduction

Boeing is expanding the amount of space it occupies in… Continue reading

Paul Roberts makes a speech after winning the Chair’s Legacy Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Paul Roberts: An advocate for environmental causes

Roberts is the winner of the newly established Chair’s Legacy Award from Economic Alliance Snohomish County.

Laaysa Chintamani speaks after winning on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Laasya Chintamani: ‘I always loved science and wanted to help people’

Chintamani is the recipient of the Washington STEM Rising Star Award.

Dave Somers makes a speech after winning the Henry M. Jackson Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
County Executive Dave Somers: ‘It’s working together’

Somers is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mel Sheldon makes a speech after winning the Elson S. Floyd Award on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Mel Sheldon: Coming up big for the Tulalip Tribes

Mel Sheldon is the winner of the Elson S. Floyd Award from Economic Alliance Snohomish County

Craig Skotdal makes a speech after winning on Tuesday, April 22, 2025 in Tulalip, Washington. (Olivia Vanni / The Herald)
Craig Skotdal: Helping to breathe life into downtown Everett

Skotdal is the recipient of the John M. Fluke Sr. award from Economic Alliance Snohomish County

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

The Coastal Community Bank branch in Woodinville. (Contributed photo)
Top banks serving Snohomish County with excellence

A closer look at three financial institutions known for trust, service, and stability.

Image from Erickson Furniture website
From couch to coffee table — Local favorites await

Style your space with the county’s top picks for furniture and flair.

2025 Emerging Leader winner Samantha Love becomes emotional after receiving her award on Tuesday, April 8, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Samantha Love named 2025 Emerging Leader for Snohomish County

It was the 10th year that The Herald Business Journal highlights the best and brightest of Snohomish County.

2025 Emerging Leader Tracy Nguyen (Olivia Vanni / The Herald)
Tracy Nguyen: Giving back in her professional and personal life

The marketing director for Mountain Pacific Bank is the chair for “Girls on the Run.”

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.