2008 Woodie Awards
Nationwide housing slump makes buying cheaper
Kiah Haslett
Issue date: 2/26/08 Section: News
Tim Fago owes a large amount of money for his home's mortgage.
He took advantage of the housing slump to purchase a home close to campus. He will be paying it off for the next 30 years.
"When you rent, you basically pay someone else's mortgage," said Fago, a sophomore general studies major. "I decided to buy my own house and have roommates. Owning property adds to your overall wealth."
When the housing bubble burst this summer, its foundation of subprime loans crumbled and its summit of jumbo loans, which are loans that are more than $417,000, toppled. The market quickly transformed itself from a heyday of ever-increasing prices to one of declining value and an increased amount of homes for sale.
But the blow of the housing slump has been soft in Nebraska. Nationally, housing sales have dropped 17.6 percent; in Nebraska, sales have been down 4.6 percent.
"The areas doing the best are the Midwest and upper South because of price gains, job gains and population gains," said Walter Molony, a spokesman of Industry Trends for the National Association of Realtors.
The figures are skewed, he said, by data from high cost areas around the nation which have been hit harder by the housing slump.
"The table has turned considerably (for) buyers," Molony said. "Sellers have learned to negotiate prices, help with the down payments and maybe even cover closing costs."
The difference for prospective buyers, Molony said, means renting or buying. For sellers, it means selling now or selling later at unforeseeable and perhaps unfavorable terms.
Buyers are now looking to time the market to get the best house for their money and the lowest interest rate for mortgages, he said. But the market is prime for buying now.
"It's as low as we're going get, except for the jumbo loans, with the biggest slowdowns taking place in high cost markets," Molony said.
Fago said the weaker market made it easier for him to buy his home.
"There's more leverage when you're negotiating price," he said. "It's easier to buy and harder to sell."
He said the value of his home has actually gone up. He is working on second floor renovations to add overall value to the residence.
"It's weird to have a debt for 30 years," Fago said, "but I'm not worried about it."
Fago said he also isn't worried about being able to make the monthly payments, which are about $1,400 a month including utilities. He splits the payments between three roommates.
Fago said he likes his home, especially its location in the middle of Lincoln, which enables him to take classes at UNL and Southeast Community College.
"If you have the ability to own your own home and make payments, I would say yes," he said. "Get roommates and some assets."
kiahhaslett@dailynebraskan.com
He took advantage of the housing slump to purchase a home close to campus. He will be paying it off for the next 30 years.
"When you rent, you basically pay someone else's mortgage," said Fago, a sophomore general studies major. "I decided to buy my own house and have roommates. Owning property adds to your overall wealth."
When the housing bubble burst this summer, its foundation of subprime loans crumbled and its summit of jumbo loans, which are loans that are more than $417,000, toppled. The market quickly transformed itself from a heyday of ever-increasing prices to one of declining value and an increased amount of homes for sale.
But the blow of the housing slump has been soft in Nebraska. Nationally, housing sales have dropped 17.6 percent; in Nebraska, sales have been down 4.6 percent.
"The areas doing the best are the Midwest and upper South because of price gains, job gains and population gains," said Walter Molony, a spokesman of Industry Trends for the National Association of Realtors.
The figures are skewed, he said, by data from high cost areas around the nation which have been hit harder by the housing slump.
"The table has turned considerably (for) buyers," Molony said. "Sellers have learned to negotiate prices, help with the down payments and maybe even cover closing costs."
The difference for prospective buyers, Molony said, means renting or buying. For sellers, it means selling now or selling later at unforeseeable and perhaps unfavorable terms.
Buyers are now looking to time the market to get the best house for their money and the lowest interest rate for mortgages, he said. But the market is prime for buying now.
"It's as low as we're going get, except for the jumbo loans, with the biggest slowdowns taking place in high cost markets," Molony said.
Fago said the weaker market made it easier for him to buy his home.
"There's more leverage when you're negotiating price," he said. "It's easier to buy and harder to sell."
He said the value of his home has actually gone up. He is working on second floor renovations to add overall value to the residence.
"It's weird to have a debt for 30 years," Fago said, "but I'm not worried about it."
Fago said he also isn't worried about being able to make the monthly payments, which are about $1,400 a month including utilities. He splits the payments between three roommates.
Fago said he likes his home, especially its location in the middle of Lincoln, which enables him to take classes at UNL and Southeast Community College.
"If you have the ability to own your own home and make payments, I would say yes," he said. "Get roommates and some assets."
kiahhaslett@dailynebraskan.com
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