Decatur Realtor Glenda Williamson, who has been in the business for 23 years, surveys the local housing scene with satisfaction. She said that while no one can predict what will happen to employment in a recession, the corporate strength of big employers such as Archer Daniels Midland Co., Caterpillar Inc., and labor-intensive operations such as Decatur Memorial Hospital and St. Mary's Hospital have so far helped buoy the housing market here.
To be sure, another factor in stabilizing the local housing market is that Decatur does not have the allure of a coastal, Sun Belt or Desert Southwest community. Its Midwest location no doubt helped deflate price speculation pressures along with what Williamson described as sensible lending practices by local banks and consumers who acted responsibly.
"People in this area don't tend to go out and buy a house that is at the top of what the mortgage company is going to loan them," Williamson added. "Sure, they would like to buy a house twice the size of what they are buying, but they sit back and say, 'Do we really want this? Do we want to spread ourselves that thin?' It meant that we never had that speculative price balloon that has burst in so many other areas."
Kevin Fritzsche, a broker associate with Brinkoetter and Associates, agrees. He said it was tempting to envy sunny coastal communities that used to enjoy stunning levels of real estate appreciation.
"They were growing at unheard of rates while our market trotted along at 2 or 3 percent appreciation," he added. "And while we might have been all upset about it at the time and wished we were them, we're now the ones winning the race."
Bankers say Decatur hasn't escaped the widespread economic malaise entirely and point to tightening local lending standards that are a direct fallout from the national credit crunch. Buyers will need at least a 3 percent down payment and solid credit histories to qualify for the best rates.
But the mortgage rates they can get are still attractive, hovering around 6.5 percent.
"I can remember when rates were 9.5 or 10 percent," said Karylle Wike, vice president for mortgage lending at Regions Bank. "So rates of 6.5 percent are still wonderful, and it's a good time for people to get moving and get out there and buy."
treid@herald-review.com|421-7977
-----
To see more of Herald & Review, or to subscribe to the newspaper, go to http://www.herald-review.com
Copyright (c) 2008, Herald & Review, Decatur, Ill.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
NYSE:ADM, NYSE:CAT,
A service of YellowBrix, Inc.
