Today, the Associated Press newswire had a story entitled "Midwest Home Sales Post 7 Pct Annual Decline" written by David Twiddy. The story commented on two recently released reports on the state of the Midwest housing market. Here is a summary of the reports:
- NAR Existing Home Sales Report: The existing home sales report issued by the National Association of Realtors for the 12-state Midwest region fell 7 percent from March last year and median prices declined 6 percent from March 2008 to $141,300. The good new is that this represents the smallest declines of any region. Nationally, median prices fell 12 percent.
- The Associated Press-ReMax Monthly Housing Report: 11 of 12 of the major Midwestern cities tracked by the AP/ReMax report showed declines. Chicago, Wichita, Indianapolis and Fargo posted the largest declines in the Midwest declining 20% or more. Minneapolis was the only city included in the survey that showed increased sales. Here are some of the figures:
- Chicago - 29% decline in sales / 22% decline in median sales prices.
- Fargo - 45% decline in sales / 6% decline in median sales prices.
- Wichita - 35% decline in sales / 4% decline in median sales prices.
- St. Louis - 14% decline in sales / 10% decline in median sales prices.
However, the story included a number of comments from local real estate professionals which indicate that housing market has improved in recent months:
- Brian Merrion - City Point Realty (Chicago) - commented "he's actually optimistic because he has seen an increase in appointments, open house attendance and homes coming under contract."
- Tom McKinnon - Re/Max Realty 2000 (Fargo)- commented that "business overall has been much better than the previous four months because more people are beginning to look at and make bids on homes, disputing national headlines of financial doom."
- Michael Emery - Edina Realy (Minneapolis) - comments "a lot of people got priced out of the market in last 3-4 years and those are the people who are coming back" and that "his office has seen a big surge in traffic among younger consumers, attracted by the federal government's $8,000 tax credit for first-time home buyers and other benefits offered in the Twin Cities."
- Josh Roy - Keller Williams Realty (Wichita) - commented that "that fear is beginning to dissipate, especially among newer customers" and that 30 or 40% of the buyers out there are first-time home buyers,''
- Ryan Shaughnessy - PREA Signature Reatly - commented "the tax break for new home buyers is helping but he said consumers are being much more cautious, looking at potentially dozens of homes before making a bid" and that "the logjam has broken... but the shopping horizon seems like it's longer in terms of the buying cycle for people right now. They don't want to make a mistake.''
Now, more than ever, it is important to have experienced representation when purchasing a home. Reading this story in isolation, you may conclude that the market is still volatile and it may be a bad time to purchase. However, the trends suggest otherwise. Purchasing value based on accurate market reports remains the key. Inventory has declined by over 50% and median prices are now rising (see below).
More importantly, these broad statistical measures often fail to reflect the condition of local markets and neighborhoods. For example, Lafayette Square had a median sales price increase of 8% in 2008. Before you purchase a home, contact a local real estate agent who is best situated to describe and provide accurate data regarding the local housing market.
Looking for a home in Lafayette Square or the other historic neighborhoods of the City of St. Louis, Missouri, contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or by e-mail to Ryan@PREASignatureRealty.com. Or visit our website at www.PREASignatureRealty.com.
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