Buyer’s market, but — buyer beware

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Has the subprime loan crisis, which has plummeted property values, hit Southwest Iowa? Union County Assessor Gene Haner said that from what he is seeing property values are staying about the same for home sales. On the other hand Green Valley Realty, 1016 W. Montgomery St., Owner/Broker Korina Loudon said it’s starting to hit the area. “We are starting to see a slight decline in owner-occupied properties,” said Loudon. “But nothing like what has hit the coasts.” There is an increase in the number of bank-owned and homes in foreclosure, said Loudon. There were people who took out loans for 100 percent or more of the value of their homes, who now find they are unable to afford that debt said Loudon. “If the economy keeps up the way it’s going, we could see more,” said Loudon. “We don’t see a lot of flipping.” Flipping refers to buying properties with low value, making some improvements and selling the property for a higher value, turning a quick profit. Lois Monday, owner/broker of Monday’s Realty, 609 W. Adams St., said property values in Union County are high in comparison to the per capita income, according to a Web site, epodunk.com, where statitical census information is available about cities across the nation. “It’s definitely a buyer’s market right now,” said Monday. “Property values have been increasing in Union County, now we’re seeing houses in foreclosures because they were valued to high. We try to warn people to stay away from those adjustable-interest rates from finance companies they find on the Internet.” Union County residents are in the top five percent of the counties in the state of Iowa for the amount of property taxes paid and the lowest earning power, said Monday. “People have to make sure that they can still afford to buy groceries and medication after they make a house payment. They don’t want to become a slave to their house,” said Monday. “It affects their lives. Money is the cause of 99 percent of troubles.” Monday said she has seen people taking a loss on properties they bought for the assessed value, put more money into the home by remodeling, then had to sell because of job relocation. “I’ve seen people have to bring money to the closing table because they weren’t able to get enough out of the sale to pay off the mortgage,” said Monday. “It’s happening too often, people need to look before they leap.” Carol John, owner/broker of Number One Realty, 114 N. Elm St. is more optomistic about the market. “I don’t necessarily think it’s a buyer’s market,” said John. “I think the market is holding its own.” John said certain price range homes are affected differently. “We kind of live in our own world,” said John. “We haven’t been hit as hard as the east and west coasts.” ____________ Valarie Allen can be reached at 782-2141, ext. 233 or vallen@crestonnews.com