|
For the housing market in Grand Island, 2007 was definitely no 2006.
The city's housing sales numbers saw a definite slide last year possibly the biggest in at least six years as the number of houses sold declined about 18 percent, from 774 in 2006 to 656 in 2007, according to Multiple Listing Service numbers provided by Sheila Hulme, president of the Grand Island Board of Realtors.
Even so, local real estate agents say the market is good here, and some attribute last year's numbers to the negative media about the sub-prime mortgage crisis which hasn't affected Grand Island as dramatically and a naturally cyclical market.
"Personally, I think that the negative press about the market throughout the country has hurt, because it's not specific," said Chris Schwieger, president-elect of the Grand Island Board of Realtors.
Major slumps in housing have primarily taken place along the coasts, where houses appreciated too much, too fast, and too many people borrowed using sub-prime mortgages they couldn't really afford.
"People locally read those stories and they're afraid to buy right now," Schwieger said.
In addition to buyer perception, the real estate market's natural ups and downs were also a likely cause of the decrease in sales, said Gregg Roberts, an associate broker with Woods Bros. Realty.
"Real estate is very cyclical," Roberts said, pointing out that news about housing market troubles in other parts of the country didn't start coming out until about midway through the year. Housing sales in 2007 were slow from the beginning, he said.
But, unlike many other areas of the country, Grand Island's housing market isn't off track, he said.
"I just think that locally, in our area, the housing market is still very strong," Roberts said.
While Grand Island tends to be buffered from the trends of the coastal states, many of which saw a sharp increase in the number of foreclosures in 2007, notices of default filed in Hall County went up 26 percent last year, from 192 in 2006 to 243 in 2007.
Hulme, a real estate agent with First Brokers, said her office deals with many foreclosure properties and has seen a noticeable increase in recent months.
"In the last three to four months, we are starting to see more high-end (home) foreclosures," she said.
Even so, that increase in foreclosures hasn't had a noticeable effect on the number of houses being put on the market, Roberts said.
And overall, business has actually started picking up this year, Hulme said.
Those who are concerned about home values falling locally or are waiting for the market to "bottom out" before buying should keep in mind that Grand Island's market is different from most of those mentioned on the national news.
While there were fewer units sold last year, the average sale price continued to increase over previous years, from $111,917 in 2006 to $113,077 in 2007 an increase of about 1 percent.
Some houses in Grand Island are experiencing depreciation, but not by much, Hulme said.
"We're not going to see the depreciation like other markets," she said.
And depreciation shouldn't be a problem for buyers who are considering their home a long-term investment, Roberts said. Those who purchase a home and keep it for more than three years aren't as susceptible to the ups and downs of the market.
Grand Island's housing market is fairly balanced right now, meaning it's not a buyer's market and it's not a seller's market, Roberts said.
And overall, local real estate agents expect 2008 to be better than 2007.
Problems with defaulting sub-prime mortgages last year will lead to more stringent lending practices in this and future years, Hulme said. That may shrink the pool of homebuyers.
"You're not going to have as many people eligible to buy houses as you used to, even a year ago," Hulme said. "It used to seem like anybody could buy a house, but now their guidelines are getting stricter." And that may have an effect on this year's numbers.
But with low interest rates and a good inventory of houses for sale, now is the time for prospective home buyers to start looking, Roberts said.
"From a buyer's standpoint, this is probably one of the best markets to get involved that I've ever seen," Roberts said. "I haven't seen the planets lined up as well."
Smart buyers who are financially ready for homeownership should act sooner rather than later, Roberts said, as prices may increase during the spring and summer months.
"The people that are going to wait, I think, are making a big mistake," he said.
Grand Island housing market
Year Units closed Dollar volume Average sold price
2007 656 $74,178,644 $113,077
2006 774 $86,624,531 $111,917
2005 798 $81,821,141 $102,532
2004 742 $73,118,157 $98,541
2003 690 $66,010,526 $95,667
2002 685 $61,864,446 $90,313
2001 727 $66,290,677 $91,183
Source: Grand Island Multiple Listing Service
|
