Depressed prices could be helping Springfield's rebirth

[zoo]

http://jacksonville.com/business/2009-10-01/story/depressed_prices_could_be_helping_springfields_rebirth

"A wave of restorations that’s been sustained since around 2000 has helped the neighborhood finally shake off a decades-old reputation for being “troubled,” and the city’s first suburb â€" it was founded in 1869 â€" hasn’t looked back."

[thelakelander]

This is something I believed would happen when the real estate market first took a turn for the worst.  The reduction in prices is allowing a ton of people and businesses that were originally priced out to become a part of the community.  This is clearly evident with the number of businesses opening in Springfield now, despite the economic climate.  I'm just hoping it keeps up to the point to where is creates a snowball effect.

[fsu813]

The article in Southern Living Magazine should be great, i know thier photographers were in the neighborhood not too long ago.

Good video that accompanies the story as well, on the jacksonville.com site.

[Southbanker]

That is the reason I am in the hood now!

There was a lot of speculation going on with people who thought they would get rich flipping houses.  Now a lot of them are in foreclosure and that is allowing people to get in cheap.  People who want to LIVE in SPR and actually care about the neighborhood.

And finally, SRG (who was charging Avondale prices for their houses) accepted the reality of the current market and lowered their prices.  They are still on the high end of the market, but at least reasonable now.

I like the way the future looks for SPR.

[mtraininjax]

Better get some good sound funding sources, or no one will be able to get these bargains!

[strider]

We need to remember that it was not just those "greedy" speculators that got hurt in this de...ahhh.. recession and we need to remember that it is not over.  And while I agree that many times houses were over priced in the past, as a contractor who built two new houses just before that bubble burst, the costs to build or renovate were through the roof as well.  Both the potential selling prices for these homes and the cost of building/ renovation has dropped drastically these past months. And that is one of the positive things....though the work is still pretty slim and many are still out of work.  Yes, we do need the banks/ lenders to get over this issue and start loaning out some money so they can make some again. And more houses can get bought and renovated.

The pluses, in my opinion, do not really justify the negatives of being in a recession this bad.  A market adjustment would have been just fine, thank you! One plus that I am glad of is the mix of new residents coming into Historic Springfield.

[sheclown]

We built two houses on Liberty.  The price of flooring doubled in the time it took to move from one house to the other.  Drywall jumped $10.00 a sheet, if you could even get it.  When I see the cost of plywood in Lowes I want to cry.  The last year before the fall was insane.  And we won't even talk about the cost of labor.

I hope we come out of this with some stability, but right now, buying supplies and labor -- not even to mention the cost of the houses -- certainly could be helping Springfield's rebirth.

[Southbanker]

Better get some good sound funding sources, or no one will be able to get these bargains!

If you are qualified then you can get a loan.  If you are not qualified then you probably should not be buying one of these bargains.  That is part of what got us into this current environment.

[Gonzo]

Better get some good sound funding sources, or no one will be able to get these bargains!

If you are qualified then you can get a loan.  If you are not qualified then you probably should not be buying one of these bargains.  That is part of what got us into this current environment.

While I agree with your sentiment Southbanker, there is also the issue that the currnet economic conditions have changed the eligibility of many previously qualified individuals. People who had golden credit ratings are suddenly seeing banks drastically reduce thier credit limits on credit cards thereby skewing their credit ratios. Those who had rental properties are seeing these home sit vacant, or worse, occupied by tenents who refuse to pay rent and trash the houses when evicted.

My point is that those with previously high credit ratings are now dealing with extraordinary circumstances which are rapidly decreasing their rating. If the banks cannot see past some of these issues and grant credit on a case-by-case basis, then recovery will be slow at best.

[Southbanker]

I agree, credit is much tougher to get than it has been. 

I was primarily talking about 1st mortgages on primary residences.  Those are available.  Mine closed 3 weeks after app.  And I can tell you that the company I work for has done billions in new loans this year for purchases and re-fi's.  And home purchases are given much higher priority than re-fi's which is why mine closed in 3 weeks.  Business has been so good we have had to increase staff to handle the volume.

[Springfield Girl]

Will the Earth stand still? I actually agree with Strider and Sheclown! They bring up an important point. The cost to build a new home is higher than what many homes are selling for at this time. This is one reason I feel the market will return, albiet slowly. New home construction has slowed almost to a halt. Existing inventory will sell off, eventually creating more demand than supply. Last time I looked the population was still growing so prices will rise again when the demand exceeds the supply. I wish I had more money because this too shall pass and when it does the deals are going with it.