By Brenda Showalter, The Republic
bshowalter@therepublic
While the country faces one of its worst housing slumps in more than a decade, Bartholomew County is seeing rising prices and a steady pace of new home construction.
Five years of statistics from the Columbus Board of Realtors and Bartholomew County's Department of Technical Code Enforcement show an overall strong local market.
Sales prices for single-family homes in Bartholomew County have steadily increased since 2000. This year's average price of $164,677 (as of Sept. 30) is 10.5 percent higher than 2006. The annual number of homes sold also has increased every year for the last six years.
New home construction value already has topped $44 million this year, compared to $45 million from January to September 2006.
Brian Thompson, the county's chief code enforcement officer, said the number of permits issued for new home construction has remained steady. In 2006, 199 permits for new homes were issued from January through September, compared to 195 this year.
The number of homes sold is slowing, but local real estate agents are expecting a rebound. Through the first nine months of this year, 778 homes have been sold in Bartholomew County, down 44 from the same period last year.
Vicky Gelfius, president-elect of Columbus Board of Realtors, thinks the change is tied to uncertainty about property taxes. "But that will correct itself," she said.
Property tax bills were delayed this year and are expected to be mailed in about a week with the May and November payments due at the end of November. The uncertainty over taxes also could be playing a role in the length of time a house is for sale.
The average days on the market this year is 120 days, two weeks longer than in 2006.
'Stable' market
Gelfius believes the gloomy national housing situation differs from the local market. "We have stability here," she said.
Economist Morton Marcus noted in a recent column that Kokomo was the only Indiana city in which home prices fell compared to a year ago. Bloomington, Gary and Columbus had increases of more than 4 percent, which is about the national average. Indiana saw home prices climb 3 percent during the second quarter.
"The only thing we have to fear is fear itself," Marcus wrote. "Today, it is fear running wild through financial markets that is our greatest economic concern."
Part of the national housing crisis is attributed to a natural correction in the market after values soared in recent years to record levels in parts of the country.
In Florida, for example, home prices increased 95.3 percent in the last five years, according to U.S. Office of Federal Housing Enterprise Oversight. Indiana's home values during the same period increased 16.5 percent.
Indianapolis has been hit more severely by the crisis, in part because of its high rate of foreclosed homes. Indiana has one of the country's highest foreclosure rates, a trend that also has struck Bartholomew County homeowners.
This year, 229 foreclosures have been filed, compared to 307 in 2006, according to Bartholomew County clerk's office. An increased number of foreclosures typically leads to lower average home sales prices, but home appraiser Timothy Scheidt said he is seeing the opposite here.
"We have had appreciation in values in spite of the foreclosure activity," said Scheidt, who serves on Columbus Board of Realtors' board of directors.
He sees that as a positive sign for the local housing market.
According to Columbus Board of Realtors, of the 1,079 homes sold in 2006, 302 homes cost more than $175,000 and 373 costs less than $100,000. The remaining 405 were between $100,000 and $174,999.
Twenty-three of the Bartholomew County homes sold in 2006 cost more than $400,000.
Positive trends
Local real estate agents believe the local market's strength can be attributed to such factors as the attractiveness of the community to homebuyers and low interest rates.
They also credit local mortgage lenders, appraisers and Realtors for providing good service to buyers and sellers.
Jim Petro, broker/owner of F.C. Tucker Wagner Realtors in Columbus, said buyers and sellers will benefit from working with local Realtors and lenders who have a proven track record.
He believes Columbus shows the "positive side to the real estate industry" that often is not seen in the national news stories.
"Buyers need to be aware of getting lending via the Internet," said Petro, noting that they should avoid offers that seem "too good to be true."
Petro added that the local market has slowed somewhat this year because of factors including the property tax situation and the typical fall market slowing.
Gelfius believes that national housing stories are causing some concern and hesitation for people considering buying or selling homes.
"They hear the doom and gloom, but the market is good here," she said.
"If you price a house right and it is in good condition, it will sell."
Stable interest rates also help, Gelfius said. Most buyers with good credit can secure loans with a rate below 7 percent.