[We want to welcome new poster Katie Fluegge to the discussion. She has started off with a bang, and I trust a very meaty subject for you all. Welcome Katie.]
Every time I turn on the news I hear the headlines about “record foreclosure” and nationwide home sales being down. But when you look at home sales in our area the truth is Central Wisconsin has a strong economy and hasn’t been affected the way that other parts of the nation have been. Locally, we have seen a decrease in the number of overall home sales by about 22% in 2008 from 2007, according to our Central Wisconsin MLS system.
Some people associate the national down-turns with our local community, and this of course is contributing to the fear factor and decline in home sales in our area. There is no doubt you would be nervous about purchasing a new home when you hear that home values have decreased and foreclosures are up. But what people are forgetting is that home values in our area have historically held there value very well. We are very fortunate to live in an area that hasn’t been affected as much as other areas and where housing is still affordable and obtainable to the average consumer.
Contrary to what is being said and may be happening on a national level, it is a great time to buy a home. Interest rates are at a historic low between 4-5% and there are some great deals out there right now. I only wish I wouldn’t haven bought my home two years ago, so I could take advantage of the deals. Many people don’t realize that 20 years ago, buyers were required to have 20% down and interest rates were between 12-13%. Inventors are taking advantage of these opportunities and spending money to make money, which is great.
As the director of marketing and sales for a residential new construction company, we are seeing a lot of second and third time homebuyers both upgrading and downsizing and keeping busy with quotes and home showings. Of course we could always be busier but we are much busier that you would think from the crap the media keeps jamming down everyone’s throat. Our lender affiliates have informed us there are some great deals out there right now for first time homebuyers and don’t forget about the $7,500 tax credit buyers receive if they purchase a home prior to July 1, 2009! You can buy a home now for as much as you are paying in rent.
With the rising energy costs, investing in an energy efficient home has never been a smarter idea. Select quality builders build their new homes to energy standards and include Thermax insulation in the basement, which provides an extra insulation and moisture barrier and our insulation standard exceed what is generally required by code. These homes need to comply with a series of heat-loss standards, which they well surpass. Some builders also install high-efficiency furnaces and water heaters in our homes so you can rest assured that you won’t be wasting unnecessary money in the winter months. Homes built to energy star standards are at least 15% more energy efficient that even homes built to the 2004 International Residential Building code and include features that make the 20-30% more efficient than standard homes. Select local builders also pride themselves on many “green” building techniques and materials used, which is important for the future of their homeowners and our community. You just cannot get these energy saving features in an older home.
As a community, we are not helping our local economy by keeping our money tucked away in our mattresses. If we are hoping to put an end to the economic down turns, the best thing we can do as consumers is to spend and take advantage of some of the great deals that are out there right now in our community. This includes taking those steps towards purchasing a new home and or vehicle, if you are in the market for one. We can help sustain our local economy by being smart and enthusiastic buyers and by spending locally. By doing so, we can insure that both you and I will make it through and have a successful 2009!
