As we wrap up 2011, I reflect on how grateful I am for everything that life has to offer in spite of our own trials and tribulations. For me, starting Randy Fischer Real Estate in January 2008 as The Great Recession began, has been the most challenging chapter in my life. It has been a most interesting four years to say the least, starting and running a real estate company during the most tumultuous times in the history of the real estate business. It was difficult to see with clarity what this recession was going to be about. I believe that the only thing that we could do was get out of bed in the moening, put our work boots on and see what the day would bring. For the most part, that is what our parents (and our grandparents, great-grandparents and the rest of the folks that have gone before us) had to do.

The Great Recession however, touched everyone; some more than others. It exposed the fragility of an economy of which I have seen numerous times before, however never of this magnitude.

The markets did change, the economy is still changing, and the New Economy is going to look like…well, it will be better than the last.

The game changers to the Old Framework of which the New Economy will begin are numerous, but three that have been stated before are: First, the expansion of credit availabililty as many households spent beyond their income earnings in the hope of paying off those debts with future income ended with the Great Recession. Next, home prices were expected to rise as previously since Post WWII. The Great Recession ended that. And lastly, state and local governments has also anticipated that future retiree benefits and helath care, woefully underfunded in many states and localities, xould be paid out of future tax revenues. Again, that won’t end very well.

The housing market today is loaded with opportunity. The Housing Affordability Index is off the charts, highest ever. Housing inventory is coming down, read the report I loaded last week from the National Association of Realtors. Prices appear to be reaching stabililzation levels. Interest rates are less than 4%. You can buy a home if you have 3 1/2% down payment, a modest credit score (Barry Habib, CEO of RPM Mortgage stated Wednesday morning on CNBC that you need 640 or better) and you have a job. Household formations are also increasing. The Barry Habib report that I received showed rents had increased 7.4% the past year – house payments are not inflationary if you have a fixed rate. The question is whether you can get a better deal tomorrow. Time will tell.

As I move around the streets of Alexandria, MN, I ask the people how their businesses are doing. I get excellent reports from even the smallest of business operators. Do your own polling; ask the people in the private sector how they are doing. We are working harder than before and being more productive; one of the benefits that has occurred from the Great Recession. Jack Welch, the former CEO of General Electric (I had quoted in my September 23rd blog) said, that I repeat often, is that “things are better than people think they are.” Remember our attitude is key; it is all that you have. Stay positive; there is a lot of negativity out there.

The citizens of the Alexandria, MN area clearly shined through this year with the passing fo the bond referendum for a new high school. It was crystal clear that the positive attitude and the people of this community wanted to “move forward”. To further the positive elements of our school district, the levy that was passed on December 19th showed a 4.18 percent DECREASE. Out of the three main taxing entities on your real estate tax statement, major kudos to the school district for their leadership and vision. The new high school will be another major turning point for Alexandria, MN and setting the stage for this community to move closer towards the regional center that it is destined to become.

My final comment is that you should consider investing in the Alexandria, MN area. Oftentimes, money is invested in areas that are far removed from where you live your life. Unlike some communities that may not fare so well after the recession, Alexandria, MN has proudly served myself and others for the past many years. I see a great future, almost like a new beginning. Buy Local, Buy American.

Thank you again for another record year from all of us at Randy Fischer Real Estate. We here shall continue our work in 2012 to help the Alexandria, MN area continue to “move forward”.