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
In November of 2006, then-sophomore Nick Wellenstein evaluated the housing market in Eau Claire and decided to take a step most students probably wish they could do - become his own landlord.
Wellenstein, a junior, and his freshman brother co-own a house on State Street. Wellenstein said it is a great investment for a student because the money he would've used on rent is now going to provide for his future.
"I have a little cushion now," Wellenstein said, adding that the good atmosphere for buying homes in Eau Claire contributed to his decision to purchase.
While national headlines are exclaiming the woes of the "mortgage crisis," such real estate woes aren't hitting as hard in the Chippewa Valley. According to a March 23 article in the Leader-Telegram, foreclosures are up nationally 75 percent from last year. But local real estate agents said that while foreclosures are also on the rise in the Chippewa Valley, the impact isn't nearly as harsh, and it's still even a "buyers' market."
Mike Paul, a 1998 Eau Claire graduate, runs eauclairebyowner.com, a discount real estate brokerage. A foreclosure, he said, results when a person takes out a loan to buy a house but is unable to make the monthly payments. The bank can then take back the home and auction it off, sometimes resulting in the eviction of the previous owner.
Aaron Tiry, an Eau Claire real estate agent who specializes in foreclosures, said Eau Claire tends to be "a very conservative area" when it comes to the real estate market, since it doesn't see the drastic ups and downs like some parts of the country.
"On a local level, (the mortgage crisis) hasn't affected us that much," Tiry said.
The "national mortgage crisis," Paul said, results from the fact that two years ago, it was too easy for people with bad credit to buy homes. Banks would give loans to people who normally wouldn't qualify, he said, but now that generosity is "coming back to bite us."
Wellenstein, a junior, and his freshman brother co-own a house on State Street. Wellenstein said it is a great investment for a student because the money he would've used on rent is now going to provide for his future.
"I have a little cushion now," Wellenstein said, adding that the good atmosphere for buying homes in Eau Claire contributed to his decision to purchase.
While national headlines are exclaiming the woes of the "mortgage crisis," such real estate woes aren't hitting as hard in the Chippewa Valley. According to a March 23 article in the Leader-Telegram, foreclosures are up nationally 75 percent from last year. But local real estate agents said that while foreclosures are also on the rise in the Chippewa Valley, the impact isn't nearly as harsh, and it's still even a "buyers' market."
Mike Paul, a 1998 Eau Claire graduate, runs eauclairebyowner.com, a discount real estate brokerage. A foreclosure, he said, results when a person takes out a loan to buy a house but is unable to make the monthly payments. The bank can then take back the home and auction it off, sometimes resulting in the eviction of the previous owner.
Aaron Tiry, an Eau Claire real estate agent who specializes in foreclosures, said Eau Claire tends to be "a very conservative area" when it comes to the real estate market, since it doesn't see the drastic ups and downs like some parts of the country.
"On a local level, (the mortgage crisis) hasn't affected us that much," Tiry said.
The "national mortgage crisis," Paul said, results from the fact that two years ago, it was too easy for people with bad credit to buy homes. Banks would give loans to people who normally wouldn't qualify, he said, but now that generosity is "coming back to bite us."
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…)
Post a Comment