Housing down, rural up (complete article from source)
Source: dailypress.net, by Kim Hoyum
January 25, 2007
ESCANABA — “Trailers for sale or rent, Rooms to let, 50 cents...” Housing in the area isn’t quite as cheap as in the Roger Miller song, but local realtors are saying low prices have been the norm this year.
“We have a lot of homes for sale and not too many buyers,” said George McLaughlin of Premier Real Estate in Escanaba. It’s part of a nation-wide slowing in real estate sales, which drives down the amount sellers can get for their home.
“People are always reluctant to go with that because they feel like they’re losing equity, and of course they are,” McLaughlin said. “If they want to move their homes, they have to be flexible on the price.”
Liz Evensen of Alpine Realty in Gladstone also saw sales go down over the past year and said economic insecurity was part of the reason. “A lot of people I think last year were just holding on, waiting for the economy to get a little better,” Evensen said. She pointed to higher gas prices and an increase in prices across the board as money-tightening factors for many. She said she also has not seen as many out-of-town buyers, because people were cutting back on travel, so visitors didn’t get up into the area as much.
“I think there were local economic factors in Delta County; the layoffs at EMP and some insecurity about what was going on at Mead (NewPage),” she added.
In Schoolcraft County, the trend is moving to more rural areas, said Kerry Prater of State Wide Real Estate in Manistique. “In the city, it’s pretty much a buyer’s market,” he said. “People want to move outside the city, get out into the country a little bit.”
Part of the reason may be lower utilities and taxes outside the city, although the rates are low in Manistique compared to other cities in the U.P., Prater said.
The slow sales can be a good thing for those wanting to buy a home.
Jason Gasperich moved to Escanaba in December with his wife, Stacy. “There were plenty of houses to choose from,” he said.
Gasperich said he hasn’t had a problem getting jobs for his contracting business but has noticed more calls for remodeling than new construction.
Other contractors noted a parallel slowing in building. Randy Snowden, general manager of Snowden Construction in Escanaba, said the trend was linked to the poor state business climate as well as local factors.
“It’s affected a number of avenues when it comes to commercial building or private building, new subdivisions. That’s what we’re feeling as an end result,” Snowden said. “We need businesses to employ people.”
There is always the seasonal component to consider, said Amy Dyer, a realtor and broker with Coldwell Banker. Winter is generally slower for the housing market since people don’t like to move in cold weather, she said. But Dyer also noted area demographics affect home buying. “Our population is getting a little bit older, moving on,” she said.
A slow economy also makes it less likely that younger people will buy a home in the area, Dyer said. “I think that a lot of our young people, instead of renting or buying around here, are moving away, because they have to find a decent-paying job,” she said. “But I think people around here are really on board with trying to improve the economic situation — the Delta Chamber (of Commerce) and everyone.”
There may be a bright note for home sellers in the coming year. Evensen said so far in January sales looked promising.
Click here for complete article from dailypress.net
|
