City struggles to build and sell houses in troublesome economic times
Unemployment a major contributor in housing crisis
Alexi Treu
Issue date: 3/12/09 Section: Beyond
Renae Mantecon, office manager of All Home Pro Remodeling, said 2008 was her company's best year yet. But business dropped off fast, and her family has had a rough time of it.
"My husband died and my son dropped out of college to take over," she said.
Mantecon said she hopes for a good year. Another slow one could force her company to fold.
"If we don't get funds we have no choice but to look for jobs outside," she said.
The Hillsdale housing market has been drastically affected by the slow local job growth and a quick rise in the price of construction and commodity prices. Shingle costs increased from $45 to $80 per square foot, Mantecon said. And heating gas that was 13 cents a gallon in the 1960s is now $2 a gallon.
"Traditionally winter is slow for housing purchases, but it has been especially slow this year," said Scott Evans, president of County National Bank Lending Services. Evans said that it has been harder to qualify people interested in purchasing houses due to a loss of jobs.
The many jobs lost have been the primary contributor to the local housing crisis, said Don Helton, a local real estate agent.
"Many people are in desperate need of employment," Helton said.
Helton said the unemployment comes from Hillsdale Tool plants closing, which leaves Hillsdale College and the city hospital the two top employers in Hillsdale.
"Face it, Hillsdale is not a destination," Helton said. "It does not have the prestige of Florida or California when it comes to real estate."
Evans said the drop in demand for houses has led to low sale prices for houses seized by the bank.
"There was a house being sold for $8,000," Evans said.
Evans also said low interest rates have created an increase in refinancing. And though the market is weak, low interest rates can help new buyers, too.
"There has never been a better time to buy a house," Helton said.
Helton said that the qualifications to get a loan now are back to normal after years of low lending standards.
"Loans were given to deadbeats," Helton said. He said now banks have the incentive to make proper loans as opposed to the previous 10 years.
"Another problem is that construction starts are low," Evans said.
"My husband died and my son dropped out of college to take over," she said.
Mantecon said she hopes for a good year. Another slow one could force her company to fold.
"If we don't get funds we have no choice but to look for jobs outside," she said.
The Hillsdale housing market has been drastically affected by the slow local job growth and a quick rise in the price of construction and commodity prices. Shingle costs increased from $45 to $80 per square foot, Mantecon said. And heating gas that was 13 cents a gallon in the 1960s is now $2 a gallon.
"Traditionally winter is slow for housing purchases, but it has been especially slow this year," said Scott Evans, president of County National Bank Lending Services. Evans said that it has been harder to qualify people interested in purchasing houses due to a loss of jobs.
The many jobs lost have been the primary contributor to the local housing crisis, said Don Helton, a local real estate agent.
"Many people are in desperate need of employment," Helton said.
Helton said the unemployment comes from Hillsdale Tool plants closing, which leaves Hillsdale College and the city hospital the two top employers in Hillsdale.
"Face it, Hillsdale is not a destination," Helton said. "It does not have the prestige of Florida or California when it comes to real estate."
Evans said the drop in demand for houses has led to low sale prices for houses seized by the bank.
"There was a house being sold for $8,000," Evans said.
Evans also said low interest rates have created an increase in refinancing. And though the market is weak, low interest rates can help new buyers, too.
"There has never been a better time to buy a house," Helton said.
Helton said that the qualifications to get a loan now are back to normal after years of low lending standards.
"Loans were given to deadbeats," Helton said. He said now banks have the incentive to make proper loans as opposed to the previous 10 years.
"Another problem is that construction starts are low," Evans said.
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