HOMETOWN REALTY BLOG

Last fall I heard an economist speak to a group of real estate people and mortgage brokers. He spoke about what we could expect in 2009 in our industries. He told the mortgage people that there was good news and bad news for them. The good news was that the interest rates would drop and they would be flooded with homeowners who would want to refinance. The bad news for them was that many of those who wanted to refinance would not be able to because they were upside down on their mortgages (they owed more than the home is currently worth.) I remember thinking, “well, I’m sure we in the real estate industry here in Hutchinson, MN will also be faced with a similar problem.” The guy was right! Just last week I met with four homeowners who wanted to sell their homes, and I had to tell them that it was not possible for them to sell and pay off their mortgages in the market we are currently in. Fortunately, none of them had to sell. We discussed other options they had such as renting out their current home (which two have decided to do) or just waiting for a more favorable real estate market for them to sell their current home. This real estate market is not so different than it was in the early 1980′s. Back then we were faced with huge interest rates that most people could not afford and so we had to find other solutions like contract for deeds, seller second mortgages, assuming existing loans. Most real estate agents today weren’t around during those challenging times and don’t understand what we are talking about when we mention assumable loans. Finding solutions to help people accomplish what they want to do is what our jobs as real estate agents is all about. It’s also important that we be honest with home buyers and sellers about their expectations. This is a very exciting time in the real estate business as we are all part of a very challenging market.

Even though the real estate market in Hutchinson, MN is still quieter than we’d like, we are starting to see multiple offers come in on quite a few properties. That certainly is a good sign! There are buyers out there just waiting for the right “deal” to come along and when it does, the buyers are making offers. A person has to wonder though, are these buyers purchasing the homes that they want, or are they just buying “a good deal?” Regardless, this activity this early in the year is a really good sign for the real estate market in Hutchinson, MN!

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.