Grace Kriegisch
Daily Press Staff

The housing market is alive and well in St. Marys and the surrounding area. Though the number of foreclosures across the nation has soared, the situation here is quite different. According to Cathie Bauer of Anderson and Kime Realty Services,  the year end statistics show the average sale price throughout the county was off the 2006 figures by only 1%. The average days for a property to remain on the market is the same or less in most areas.  

The only impact of the subprime meltdown in this area affects our market in that buyers must now be more prepared to apply for a mortgage. Low credit scores and lack of savings will make a home purchase very difficult.

Luckily, prices of homes have not increased by 25 to 80 percent  as in those previously “hot” markets.

According to Bauer, the national media likes to create sensationalism, but the fact is the country is going through a national correction.

It is like trying to predict a national weather forecast, when in reality there  is no national forecast, she noted. There are only local stories and they are more relevant. Still, negative press frightens buyers.

Bauer said there are three common misconceptions consumers have about the real estate market right now:  People can not get a loan, affordability is out of reach and consumers should wait for rates to go down.

The good news for potential buyers is they need only to meet these basic requirements in order to purchase a home. They must have held a job for the past two years; have the ability to make the payments; plan to live in the property and have a good credit score.

Based on these facts, it appears that now is an ideal time for local buyers to take  advantage of low interest rates and the  large inventory of home to make their purchase.

One note of caution is that potential buyers should avoid aggressive lenders and not overstretch just to get into the market.

According to a report posted on REALTOR.org, in January 2008, home buyers should consider that all real estate markets are local and buyers and sellers who are thinking about making a move to a new location should consult with a Realtor in that market to learn the conditions specific to the area.

Though the industry prospects appear grim for states such as Florida, Nevada, Arizona and California, Bauer has a different view of the market here.

“The growth in the Elk County area has been slow, steady and stable,” she said. “We have always rebounded from our setbacks.”

“We have rebounded in the past and I expect we will continue to respond in that way,” she added.

From a different perspective, Scott Dahl manager of Northwest Savings Plaza office, is also optimistic about the housing market in the region.

“We are lending the same way we were when I came to town in 1992.” Dahl said.

He encourages home buyers to use a conservative approach when considering the purchase of a home. He also added that potential buyers should use local lenders for financing their purchase. This is a precautionary measure in case a problem should arise.

Local lenders are much more understanding and willing to work with the clients who find themselves in financial difficulty than mortgage brokers with a broad base of investors.

“Though values have declined slightly, there are good deals out there,” Dahl said. “people should be excited to buy  a house.”

Currently the sales staff at Anderson and Kime Realty Services is busy making plans for a “How To Buy and How to Sell A Home” seminar scheduled for Monday April 14  from 6 to 9 p.m. at the Community Education Council in St. Marys.

The seminar is designed to help potential buyers understand the home-buying process from the initial pre-approval stage to selecting the right mortgage. How to find the right home, make an offer with or without contingencies and closing the process will also be addressed.

Sellers will learn how to buy a new home before they sell, how to stage their home for the greatest profits and how to price their home.

The information will be presented by representatives from Northwest Savings Bank, National City Bank, Farmers National Bank, CNB and First Commonwealth Mortgage as well as experienced Realtors.

There will be ample opportunities to ask questions and speak directly with the experts. Door prizes and refreshments will be provided.

The seminar will focus on buyer issues from 6 to 8 p.m. and on seller issues from 8 to 9 p.m. For a brochure and advanced registration please call 781-6065 or 776-6125, ext. 102. There is no registration fee.