Spring Break
Mortage crisis! In Eau Claire?
Homeowners, real estate agents discuss local housing market
Emily Hartwig
Issue date: 4/14/08 Section: Money/Health
"People who probably never should have been allowed to get mortgages in the first place got … mortgages or bigger mortgages than they should have," Paul said.
Since that time, the value of real estate has dropped, which has contributed to the high number of foreclosures. Usually the price of real estate goes up every year, Paul said, but last year it went down for the first time in a while. He said this is called the "bubble mentality," adding that it has the biggest impact in high-growth areas such as Florida, California, Las Vegas and Phoenix.
In Eau Claire, however, real estate doesn't normally appreciate as much - maybe two to three percent a year - so the sudden drop didn't hurt the market as significantly, Paul said.
"Things tend to be more stable here," he said.
Junior Luke Benedict is another student who is taking advantage of low real estate prices. Just last week, Benedict said he closed on a house on Hatch Street. Even though he had to co-sign with his parents to obtain the mortgage, Benedict said he is making all the payments on the house, which he said he got for a great price.
"I got it for a lot better deal then I would've if it had been a normal market," Benedict said.
But many people aren't buying homes right now, Paul said, because real estate is not appreciating the way it was a few years ago. He said this results in a good buyers' market for people looking for a good price on a home.
"A good deal is easier to come by now than it was two or three years ago," Paul said.
However, this also means it is not a lucrative time to sell a home, Paul said, because of all the competition.
Tiry agreed that it's a buyers' market, but said banks are still looking for good buyers, which means they probably need to have a good credit score. A recent college graduate with a good credit score could possibly afford to buy a home, for example, Tiry said.
Benedict admitted he doesn't have a lot of credit built up, so a bank probably wouldn't have given him a loan for his house.
"I doubt I would have been able to pull it off without my parents' help," he said.
Tiry said interest rates are low, loans are still possible through various bank programs and there is a good selection on the market.
Whatever the real estate climate, Benedict said owning a home is more financially smart than renting a house.
"If I'm going to put money toward a house," he said, "… I'd rather buy my own house so I can get a return on it."
Since that time, the value of real estate has dropped, which has contributed to the high number of foreclosures. Usually the price of real estate goes up every year, Paul said, but last year it went down for the first time in a while. He said this is called the "bubble mentality," adding that it has the biggest impact in high-growth areas such as Florida, California, Las Vegas and Phoenix.
In Eau Claire, however, real estate doesn't normally appreciate as much - maybe two to three percent a year - so the sudden drop didn't hurt the market as significantly, Paul said.
"Things tend to be more stable here," he said.
Junior Luke Benedict is another student who is taking advantage of low real estate prices. Just last week, Benedict said he closed on a house on Hatch Street. Even though he had to co-sign with his parents to obtain the mortgage, Benedict said he is making all the payments on the house, which he said he got for a great price.
"I got it for a lot better deal then I would've if it had been a normal market," Benedict said.
But many people aren't buying homes right now, Paul said, because real estate is not appreciating the way it was a few years ago. He said this results in a good buyers' market for people looking for a good price on a home.
"A good deal is easier to come by now than it was two or three years ago," Paul said.
However, this also means it is not a lucrative time to sell a home, Paul said, because of all the competition.
Tiry agreed that it's a buyers' market, but said banks are still looking for good buyers, which means they probably need to have a good credit score. A recent college graduate with a good credit score could possibly afford to buy a home, for example, Tiry said.
Benedict admitted he doesn't have a lot of credit built up, so a bank probably wouldn't have given him a loan for his house.
"I doubt I would have been able to pull it off without my parents' help," he said.
Tiry said interest rates are low, loans are still possible through various bank programs and there is a good selection on the market.
Whatever the real estate climate, Benedict said owning a home is more financially smart than renting a house.
"If I'm going to put money toward a house," he said, "… I'd rather buy my own house so I can get a return on it."
Viewing Comments 1 - 2 of 3
Michael Paul
posted 4/16/08 @ 4:22 PM CST
I regularly receive phone calls from parents of UWEC students who are interested in buying a rental property for their son or daughter to live in while they are at UWEC. (Continued…)
mortgage
posted 2/02/09 @ 7:23 PM CST
I think Kirk's story is a real inspiration. It's the ultimate way to stay up on top in this perilous market, especially this year with the economic downturn. (Continued…)
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