Choose Not To Participate

Recently I had the opportunity to spend a few days with my sisters laying on the beach and shopping. All of us have careers that are being affected by the economy in one way or another. We decided at the beginning of our trip that we would not read any newspapers, listen to any television, or listen to the radio during our time together. What we observed was the the beaches were full of people, the restaurants had waiting lines, the shopping mall parking lots were full! Hmmm. Where was all the doom and gloom that we had been hearing about before our trip? By choosing not to participate in the “bad news” all day long, day in and day out, we found that we were able to have a delightful few days. When we returned to our jobs, we were refreshed and didn’t feel so bogged down. I have decided that although I need to be informed with what is happening in Hutchinson, MN and the rest of the world, I’m not going to participate in all the “bad news” all day long. Maybe if all of us did the same, the media would have to knock it off! Ok, maybe that won’t happen, but I know how I will spend my time.

Myths About Financing

Every day someone asks me if anyone can get financing to buy homes any more. I usually answer them by telling them that they need to quit listening to all the doom and gloom in the media. Then I answer them, that yes, buyers can still get financing.

Although the number of mortgage companies that will finance 100% of value has diminished, there are still some programs in Hutchinson with 100% financing available to qualified buyers. We are in a Rural Development Area which means that buyers who have qualifying incomes and a FICO score over 620 can still obtain mortgages up to 100%.

Also we are seeing more activity in FHA loans because they only require a 3% down payment and they also require a lower minimum FICO score.

Between the State of Minnesota and our local Hutchinson Housing Redevelopment Authority, there are numerous assistance funds available. Some of these programs are for down payment assistance (up to $15,000) and others are for monthly payment assistance. All of the assistance programs are conditional on the buyer’s qualifications.

So, favorable financing options are still available.

How Will The HTI Layoff Affect Housing In Hutchinson?

Back in the fall of 1999, Hutchinson Technology had a significant layoff (about 700 employees if I remember right), and so I went back to my records to see how the housing market in Hutchinson was affected. The first thing I found was that the vacancy rate of rentals increased significantly. Many of the laid off employees were renters who moved to new locations for new jobs.

What we saw in the sale of homes was that the number of sales dropped 15% from 1999 to the end of 2000. However, the average sale price from 1999 to 2000 increased about 3%. The general economy is different now than it was in 1999. So it might not be as easy for the HTI employees that were just laid off to find other employment as it was in 1999. So, I believe that we will find the real estate market in Hutchinson during 2009 to be challenging. If history repeats itsef, we may very well see the number of home sales drop from 2008 to 2009.

That being said, it’s important for those people who find themselves unable to meet their mortgage payments to know that there are other choices than just letting the home go back to the bank. Loan modifications and short sales are common place with the mortgage lenders today and they will work with homeowners to help them out during difficult times. We will be happy to explain the difference between short sales and foreclosures to you. Or call your lender and see what choices you have.

HTI’s Layoff

Tomorrow one of Hutchinson’s major employers will be laying off a significant number of employees. In a way, I’m sure that most will be glad when tomorrow is over. The employees were told about a month ago that there would be a large layoff starting Jan. 12. I haven’t spoken to a single employee during this last month who wasn’t sure that they would be one of them to lose their jobs. At least when tomorrow is over, the 75-80% who aren’t losing their jobs will be able to breathe a sigh of relief. I have terrific faith in Hutchinson as a community and know that we will all pull together and see this thing through. We will be thinking about all of the HTI employees and their families.

Waiting Isn’t Such A Good Idea

Recently I had an opportunity to purchase some stock in a company that I am familiar with. I knew that the stock price was great, but I was worried about the market in general, so I decided not to invest. Now, less than a month later, the stock has doubled, and here I am wishing that I hadn’t waited! I’m afraid that there are going to be a number of buyers in the real estate market that are going to get caught in the same thinking. What we KNOW is that home prices are as low as we have seen them for a long time and the mortgage interest rates are at all time lows. Waiting to buy a home probably isn’t such a good idea!

Your Home — Not Just A Financial Investment

For the past 10 years or so, people considered their home an investment because prices continued to climb and people were enjoying increased equity at a faster rate than ever before. Now, in the past couple of years all that has changed. But a home is still an investment. It’s an investment in family, neighborhoods, and community. Every day I see people experience extreme pride as they purchase their homes. It’ all about the American Dream and with all the negative news, it’s a breath of fresh air to know that pride of Home ownership is alive and well.

The Maze Of Social Networking

Who has time to research all the many sites for social networking? Having a type-A personality, I have very little patience in trying to maneuver around all the various sites to figure out what each one has to offer. I have the same frustrations when it comes to all the real estate technology. I read as much as I can get my hands on, but it still doesn’t make me feel like I have a real handle on all that can be utilized on the internet for my Hometown Realty business in Hutchinson, MN. There’s so much out there with so little time to research it all.