Local pro says real estate still down

By Emily Bialkowski
Caledonia Argus

Pete Peterson of Edina Realty – Caledonia says, contrary to what might be circulating, the real estate market has not bounced back from the recession.

“You hear the market is turning; they want you to believe that,” Peterson said.

But with the number of foreclosures driving prices down, anyone who has sold a home in the last two years can attest to the fact that the market isn’t balanced.

“You bring your house price down so it sells and now it looks like the market picked up, but it hasn’t,” he said.

According to statistics and information he and his colleagues gather, Peterson said the average selling price for a home in Caledonia is $100,000 to $110,000.

In Caledonia in 2010 one new house was built; 2011, zero; and 2012, three.

In Houston County in 2010, ten new homes were built; 2011, 9; and  2012, 14.

There are 28 active homes on the market in Caledonia, though that number is a little distorted by the fact that some homes are for sale by owner.

On the bright side, the same number, 28, have sold in Caledonia in 2012, which demonstrates some movement.

“You need more than that to stimulate the market,” he said, adding, “We’re in a tough time right now.”

Peterson also said he’s heard some pretty interesting rumors about what cropland and hunting land goes for. In light of the rural nature of Houston County, he has become somewhat of an expert on such land transactions and frequently works with colleagues and clients from urban areas.

Hunting land sells for approximately $2,000 per acre where it  used to sell for $3,500 to $4,000.

Cropland sells for about $4,000 per acre up to $6,200 per acre under the very best circumstances.

Peterson hypothesized that recovery is being held back by new lending regulations. “I would hate to be a banker right now” he said.

Not only do applicants need to have a great credit score, but regulations are influencing such things as septics.

“You could have installed a septic five years ago and it qualified. All of sudden today the bank says you have to have a septic inspection and then it doesn’t qualify because of the new regulations. Now the seller has to have a new septic installed,” Peterson explained. “The rules have changed. Those are the obstacles we’re running into.”

If you’re looking to buy  a home improving your credit score or maintaining a great score will help. “The government does not like fixer uppers if you’re going for a rural development loan,” Peterson warned.

If you’re looking to sell a home Peterson recommends de-cluttering. He also said, “Everybody expects a good roof.”

Real estate transactions are taking place, he assured, but it’s still a downed market.

 

of the new regulations. Now the seller has to have a new septic installed,” Peterson explained. “The rules have changed. Those are the obstacles we’re running into.”

If you’re looking to buy  a home improving your credit score or maintaining a great score will help. “The government does not like fixer uppers if you’re going for a rural development loan,” Peterson warned.

If you’re looking to sell a home Peterson recommends de-cluttering. He also said, “Everybody expects a good roof.”

Real estate transactions are taking place, he assured, but it’s still a downed market.

 

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