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My house is for sale!

In advance of my nuptials, I need to divest myself of some real estate. It's a bit sad that I moved to Minnesota and needed to buy my house at the same time the Federal Reserve dropped the prime lending rate to 1% to battle inflation and unemployment. The very low interest rates tempted the banking industry to experiment with an idea they thought might make them money in the circumstances: extend mortgage credit to sub-prime borrowers. Banks thought they could charge interest rates high enough to cover the probable default rate for borrowers with poor credit ratings. These poor credit risks were out there buying houses when I was buying mine, pushing up demand and pushing up prices with it.

The great banking experiment failed miserably. The banks had greatly miscalculated. The banking industry is awash with defaulted loans, and the housing industry is awash with foreclosures. This is a doubly bad situation for me now, since (a) the demand for houses had dropped drastically since the banking industry is no longer floating sub-prime mortgages and (b) the supply of houses has greatly increased since the banks have to all their foreclosed properties on the market. The lower demand and higher supply both work to depress the price. Minnesota did a bit better than other parts of the country, with housing staying about even in value from 2005 to 2006. This year, however, things have taken a downturn. Houses in the Twin Cities area are selling for 4% less than they were a year ago. Accordingly, I've just listed my house at 4% less than I bought it for:

http://www.edinarealty.com/Listing/ListingDetail.aspx?Listing=21577092

If anyone wants to buy a house in this buyers' market, this house is for sale across the street from Katie and me:

http://www.edinarealty.com/Listing/ListingSearchResults.aspx?Search=b8ecf86d-0a94-4a0e-b050-761ea456b662

It's a nice neighborhood! Someone should move next to us! We'd invite you over for dinner a lot!

Comments

  1. Anonymous9:07 PM

    It is a great neighborhood! But the house across the street is poorly remodeled. That said, I guess we wouldn't be living there.

    There is another house down the street that is more stylish. (And a bit less $.) Also, 2 ramblers nearby I'm dying to tear down. Want to live there in the meantime?

    ReplyDelete

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