Experts: Local real estate market remains strong
By ANGIE JOHANNSEN, News-Tribune Editor
Think this is the year to make your move to a bigger, smaller or better home, but worried about the national economy?
Don't be, say local real estate experts and bankers.
Britt real estate agents say it's a big misconception in the area that local housing markets are following the national trends with falling home prices and increased foreclosures.
“We're fine here,” said Britt real estate agent DeAnna Kelly of Kelly Real Estate.
“We have the same number of homes available that we typically have and prices are staying about the same, too.”
Kelly said the local market doesn't follow the dark pendulum that is swinging across some areas of the country, particularly the West Coast where whole neighborhoods are littered with for sale and foreclosure signs.
“We don't see the highs and lows that some areas are seeing; we tend to be more conservative here and that makes a difference,” said Kelly. “We're lucky we remain steady and just hold our own.”
But with the change in the economy, real estate agents may see a change in the tastes and practices of sellers and buyers.
“People today want homes that are well-maintained,” Kelly said. “They want the shingles, siding, windows and utilities to be a top priority. They expect the homes to be in good repair.”
Part of that mindset may stem from the unstable economy and recession the country is in. Though people are buying homes, the money may not be there to renovate or fix major problems in order to get a home more cheaply upfront.
Deb Stevens of Diemer Realty said that with falling interest rates the time is now to buy a home.
“Interest rates are very low right now,” Stevens said. “People need to get their credit in order and talk to the banks about the process to buy a house.”
Stevens said financial institutions, though lowering their interest rates, are also tightening their credit lines and creating more restrictions for borrowers. Some people who may have qualified in the past may find the process more difficult now.
The first step in that process could be making sure upfront that your bank is willing to loan you the money you need and at a favorable rate before you start touring homes. Pre-approval offers extra peace of mind, which can be important to real-estate agents and sellers as well as to buyers.
There are 869 total housing units in Britt. The average price of a home in town is $66,087. That compares to $73,672 in Hancock County.
The market does tend to drop some in the winter months, but picks up again in the spring.
“We definitely see shifts throughout the year, and it usually gets a little quieter around the holidays,” said Kelly.
“I'm curious to see how this year will go. Winter hung on for so long last year that we were into April before we got busier.”
First State Bank President Les Johnson agreed that the market drive depends on the time of year.
“This is a slower time of year for movement but we're still pretty good in housing right now,” Johnson said.
While most of the interest in home mortgaging is in the conventional market, Johnson said he is seeing some interest sparked in refinancing homes because of the lower interest rates.
Overall, Johnson said, it's a good time to be a homeowner or to make that leap into owning a home.
Kelly said the homes currently on the market in Britt tend to offer “a little bit of everything” for buyers. She said the area offers a nice variety from new builds to older homes with distinctive character. The people looking for homes in town varies too, with some people searching for a bigger home, or maybe something smaller to retire into, or new families seeking a new spot in the community.
Stevens adds that the demand for rentals in Britt has gone up, especially with work on local wind farm projects. Overall, however, Britt remains a high owner-occupied town.
“People in larger areas are expecting investments to appreciate, but here people are expecting to live in and build their homes,” she explained.
“With Winnebago and other employers laying people off that has slowed some, but we don't see too much change yet.”
Story created Jan 06, 2009 - 11:22:53 CST.
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