Kammann wants to be ready when housing market turns around

  With the real estate market in the doldrums, now might not seem like a good time to be developing a new subdivision.

  But that isn't stopping Bobby Kammann, head of Kammann Development, who is in various stages on four housing projects.

  It's in part a testimony to the local builder's commitment to the community, where he has been building new homes for 30 years.

  But it's also faith that this, too, shall pass, as have other declines in the market over the years. And when the market does recover, he wants to be positioned. "It takes three years to get a project from paper to reality."

  Besides, Kammann observed, he was already committed to the projects when the bottom fell out of the market. "We were too far in to put the projects on hold."

  And should someone be in a position to buy a new house now, Kammann said this would be a good time with low interest rates, a good selection and prices "probably as low as they're going to get."

  That won't last, he said. As with so many other industries, rising costs are starting to hit builders, too.

  "Material costs are going up, concrete, steel, copper, plus the cost of trucking to bring it in. It's squeezing us in the middle. Buyers want low but our costs are going up."

  That aside, Kammann is still optimistic about the housing market.

  The three traditional legs of the Yuma's area's economy - agriculture, the military and tourism - continue to remain strong, he noted. Government agencies are growing and the health-care profession continues to bring in new people in need of homes. So will the General Motors test track complex now under construction at Yuma Proving Ground and the planned oil refinery and ethanol plant in eastern Yuma County.

  They might consider:

CITRUS SPRINGS
  Citrus Springs is a new starter home project Kammann is developing at Avenue C and 5th Street. While in the county, the subdivision does have city water and sewer. The infrastructure has been completed and lots are now being sold in the 56-unit subdivision.

  Kammann is starting with three models ranging from 1,200 to 1,600 square feet for under $200,000. "That seems to be where the market is now," he said. "But they're still Kammann homes with Kammann quality. We're putting some nice touches in them."

  An advantage is that starter-home buyers don't have a house they have to sell before they can buy, he said.


VALLEY VIEW
  Kammann is the exclusive builder for the 45-lot project being developed by Vern Hankins in Wellton at Avenue 28E and North Frontage Road. The infrastructure is finished and one model home built.

  "It's been a slow response," Kammann said, but he's hopeful interest will pick up when the winter visitors return.

SIERRA MONTANA
  Sales also have been slow at Sierra Montana, Kammann said of the 220-lot subdivision he's developing at Avenue 8E and 36th Street with custom and semi-custom homes.

  "I think people are still a little hesitant about being that far out," he said, even though there is a Wal-Mart and developing commercial area just down the street.

LIVINGSTON RANCH
  Livingston Ranch, located at Avenue C and 36th Street, is Kammann Development's latest new home community. The first phase features 250 lots ranging in size from 6,200 to 18,696 square feet, and 25 gated estate lots.

  Kammann is introducing 12 new floor plans priced from $200,000 to $400,000. It's the first subdivision in Yuma to offer high-speed fiber optics networks built into the homes so residents can obtain phone, TV and Internet services either separately or bundled through Time Warner.

  "There still seems to be a market for larger custom homes," Kammann said. "I think there will always be a market for good quality."

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Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.