Friday, November 14, 2008

What Can We Do To Help The Local Economy?

Things in our area have certainly been financially impacted more than we’ve seen in a long, long time. It has been perplexing for many reasons, especially in the real estate world. Interest rates are still very good. Prices are back in the range of where they were in 2002 and 2003, but it goes beyond that. Cash flow in the community seems to have come to a relative standstill.

Now is a time of opportunity. Our youngest son bought a house this week. Instead of the 1,100 sq.ft. home he could have bought a couple of years ago, he was able to buy a 1,900+ sq.ft. home with living and family rooms, huge kitchen, two brick fireplaces, big fenced yard, great location, good condition, and the Seller paid the closing costs. All that and the payment is less than rent would be on a comparable home. What can you buy today? Do you know… or are you listening to the media convince you how bad things are?

There is a window of opportunity for home Buyers right now. Bank-owned properties have been driving the market down due to their lack of maintenance and the low selling prices they accept to clear their books. Recent efforts by IndyMac, BofA, Citibank and JP Morgan Chase will forestall and perhaps prevent many foreclosures. Fannie Mae and Freddie Mac also unveiled Home Retention programs this week. With the concerted effort to slow/stop foreclosures … finally and really this time… the market should get some traction as the bank-owned properties become a scarcity.

Hoarding your cash, or saving it? The difference may be subtle, but we think significant. If you have sufficient savings and are able to carry on your commerce as usual … do it. If you are locked up socking it away then you are contributing to what has become a global problem … severely minimized cash flow. The cash must flow for the economy to sustain itself. Nobody can live in a vacuum – if you aren’t financially acting in a normal or as normal of a manner as you can, then you might find yourself without stores at which to spend your hoardings.

Our advice: Shop locally and support the merchants that operate businesses in our town. They are here to serve you … if you let them. Have confidence- don’t be afraid to live and participate in this economy. Remember “Go with the flow”? Now “It has to flow to go”. With cash flowing and homes selling, the freefall real estate pricing will stop and the stores will remain open. Buy now while the banks are desirous of clearing their inventory. The 170-plus properties in Douglas County that now have Notices of Default (preforeclosure) may not be coming on the market like you think with the new home retention programs in place.

While you watch the National effort for a stimulus package, remember to implement your own Carson Valley Stimulus Package. Smile, be confident, and help your friend and neighbor by buying what you want and need locally … and do it now. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472,
carsonvalleyland@hotmail.com, www.carsonvalleyland.com

1 comment:

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