Thursday, February 28 2008
Even though this article points out that there is a slow down in the Tri-State real estate market, we are still positioned well compared with the national trend that is going on. What the article fails to disclose is that we currently have a 9 month supply of homes on the market compared to our usual 5 to 6 months. This over supply needs to work itself through the market and once this happens we can expect an over all improvement of the current real estate market. Even though there is a reduction in new construction permits, we do not know the price ranges of the homes that are being built. With the median home price of $ 112,000.00 for the Evansville market a new permit for a home in the
$ 500,000.00 range is worth close to 4 additional permits. Our predictions are that the markets will see an up turn in the third quarter of 2008.
Home sales drop in Vanderburgh
Sales of existing homes in Vanderburgh County took a big hit this January over a year ago, dropping by 26 percent.
In Warrick County, sales dropped by 15 percent for the same period.
One of the most discouraging statistics of all, however, was that of new housing starts in Vanderburgh County, which were down by 68 percent this January over a year ago.
Yvette Dozier, a permit coordinator in the Evansville-Vanderburgh Building Commissioner’s office, said permits issued this January for the construction of single-family homes totaled 15, down 32 from January 2007.
“We’re seeing fewer and fewer contractors coming in for the permits,” she said, blaming the slowed economy and rising construction costs.
In Warrick County, there were 15 permits issued this January for the construction of new single-family homes, down 21 percent from a year ago, said Sherri Rector, executive director of the Warrick Area Plan Commission.
According to statistics compiled by local appraiser Bob Reid for the Evansville Realtors association, a total of 132 existing homes were sold this January in Vanderburgh County, down 47 homes from a year ago.
The picture was just as gloomy or gloomier across the nation where sales of existing homes fell for the sixth straight month in January, dropping to the slowest sales pace on record.
Linda Jowers, president of the Realtors association, said figures provided by Reid showed the average sale price in Vanderburgh county dropped by six percent this January from a year ago.
She said the average sale price this January was $102,847.
The sale of existing homes in Warrick County this January totaled 39, down 15 percent from January 2007.
The average sale price in Warrick was $188,436, a decline of less than one percent.
Sales in Posey County this January totaled 14, up 16 percent from a year ago. The average sale price this January was $119,543, up four percent.
Sales in Gibson County totaled 21 this January, down eight percent from a year ago. The average sale price was $113,147 this January, up 13 percent.
Despite the slumps local Realtors
said Tuesday that January is typically slow for sales in the area.
Jowers said historically the market starts taking off in March and April.
She couldn’t say for sure that will be the case this year, however. But she said she was hopeful.
Jowers said potential home buyers and sellers typically spend January and February considering their options, including possible job transfers, or tax refunds or other aspects that could impact their budget or bring changes in their lives.
“Those are the months in which people start preparing for a possible purchase or sale of a home,” she said.
Jowers said she believed the Evansville and Tri-State market is “fantastically a good market” compared to some past markets in which she worked during her 34 years so far in real estate.
She recalled times in the 1980s when the interest rate on a house mortgage shot to 18.5 percent. During another time in the 1980s, Jowers recalled, some area banks were hard-pressed to make new loans due to a weakened economy.
Jowers said she believed shoppers today have good interest rates and good home prices in their