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Local companies say times are tough but business is still there
Oct 04, 2008 (Walton Sun - McClatchy-Tribune Information Services via COMTEX)
-- It was a week of doom and gloom, yet some businesses in South Walton are seeing an ever-so-slight upturn in the local economy. "Are we still making loans? Yes," said Brian Brennan a mortgage loan officer at Premiere Mortgage Home Funding, at Gulfview Heights. "Is there still funding at 102 percent? Yes, there is." Brennan said the 102 percent is on a special Royal program, which is based on an applicant's house- hold income and is not a mainstream option.
So what has changed?
"Loans for condos have stopped," said Brennan, a fallout he said, from the sale of Washington Mutual last week.
And there is no doc and walk, where the documents are prepared, you sign and the deal is sealed.
The loan-to-value has also dropped to 90 percent from 95 percent.
"Still the overall consensus is if you are in a good position now, rates are low -- really low -- now is a good time to buy."
The prices are low. The lending rates are low and according to Brennan who just passed his test to sell insurance, insurance rates are low.
Dalton Construction of Santa Rosa Beach said the credit crunch has not impacted that company either.
"We are a really small company and we deal with the same clientele over and over, so it really hasn't affected us," said Suzy Edwards, rental manager at Dalton.
Edwards said the company's short-term rentals had remained steady throughout the peak season with no downturn. Only recently has there been a decline in demand, but nothing unexpected for this time of the year, she said.
Second mortgage loan specialist Krista Miller at Army Aviation Credit Union said she has seen an upswing in mortgages coming across her desk.
"I've seen more this month than in the last few months together," said Miller.
Miller said the biggest change she has seen is that loans, while still available, are harder to get. She said it was a return to a more traditional way of lending money in terms of qualifying a customer.
The one factor that is affecting everybody is the cost of fuel.
Rachel Morgan, coowner of For the Health of It, on County Road 30A, said they haven't seen a slowdown in customer demand but their shopping habits have changed and their supply costs have changed.
"Their shopping patterns have changed," said Morgan. "People have to buy groceries."
Morgan said people are making fewer trips but buying more each trip.
She said her suppliers have almost all tacked on fuel surcharges and are charging for expedited delivery.
Morgan said so far they have not passed on those extra costs to customers but in some instances it might delay an order delivery.
Edwards said her company was also being squeezed by high gasoline prices but had so far managed to continue doing business as usual.
Aaron Bradshaw, vice president of marketing, communication and member services at CHELCO, said his company is "struggling like everyone else," but because of the way the electric coop is structured, most of its cost of doing business flows through to the customer.
"Where you are really going to see a slow down is in facilities construction," said Bradshaw.
He said any power company contemplating building a new nuclear generating facility, the cost today is around $1 billion, all of which has to be borrowed. In order to borrow that kind of money, the utility company has to be able to show they have distributors waiting to buy the energy a new plant will generate. With today's regulations, building such a plant could take years.
There won't be any money for such projects, said Bradshaw, in today's current economic climate.
Everyone interviewed said they were optimistic but qualifi ed their statements by saying things could be completely different in 30 days.
To see more of The Walton Sun or to subscribe to the newspaper, go to
www.waltonsun.com/. Copyright (c) 2008, Walton Sun, Santa Rosa Beach,
Fla. Distributed by McClatchy-Tribune Information Services. For reprints, email
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Copyright (C) 2008, Walton Sun, Santa Rosa Beach, Fla.
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