…You read it here first. A couple years back I made the prediction that we wouldn’t turn the corner on this market until people started using the words “bulldozer” and “Real Estate” in the same sentence publically. This week, that happened, and it was all over the news. Cities are now condemning abandoned homes and reclaiming them from the banks, then tearing them down, effectively shuttering whole neighborhoods. That’s a big deal, because it tackles the root of the problem on the ground. Too many houses in the wrong place. It’s unfortunate that the people responsible for them didn’t pay, but that’s for another post.
You won’t see any of that around here mind you. Rents officially, this month, crested the cost of owning a house, and, all things considered (tax advantages of home ownership, additional expenses, etc) it is an almost exact wash, with a small forced savings plan tossed in to boot. Interest rate wise, it’s like free money, when you think of it a certain way.
The USDA Rural home loan program is absolutely saving us too. It’s a great program, kind of tricky to get, but if you keep the costs in line, there’s a definite “sweet spot” where you can get into a new, or very nearly new house, for a great price, and low, or no money down, and all your costs covered……It’s not the easiest thing we’ve ever done, but it is certainly a product that can be packaged here.
There are other bright spots in the market too. This last month, we closed the “castle” in Husum, a really amazing property. There have been signs of life across the river as well, with action up Snowden, and in town.
So have we turned the corner? I bet once we see the Inventory months closer to 10, I can say we are ok. There are still pockets of weakness, and our futures are still tied to the larger economic malaise, but if anyone is set up for a stable few years and a reasonable recovery, we are. (which isn’t saying much, really)
That’s it for this month, take care, and let us know if there’s anything we can do for you!