Quincy home sales last year reflected some of the challenges that have been felt across the nation, but showed strength as well.
Real estate broker Alan VanDeBoe keeps track of local sales statistics and said the market “is very much alive and well.” He said the number of homes sold fell slightly from the previous year and the average number of days on market was up. However, the average sale price and total value both rose from the previous year and the average sale price of $124,799 is a record.
“If you graph down from 2010, it seems like it's bottomed out. I think that's a sign that things are going to rise in 2012,” said VanDeBoe, who is part of the Century 21 Broughton Team and chairman of the local Multiple Listing Service.
National real estate numbers are not so good. The Federal Reserve reports a 33 percent decline in U.S. housing prices since 2006 has resulted in an estimated $7 trillion loss of household wealth, and about 12 million U.S. homeowners are currently underwater on their mortgages.
According to the analysis firm CoreLogic, the Home Price Index for November shows home prices nationwide fell 4.3 percent from a year earlier and 1.4 percent from the previous month.
Illinois had the second worst decline in sale prices, down 9.7 percent from November 2010. Only Nevada had a bigger decline at 11.2 percent. Most of the Illinois home depreciation took place in Chicago and surrounding communities.
Those kind of figures tend to taint people's perceptions about the housing market, VanDeBoe said.
“I think if you hear it so many times, you start to believe it. Every night on the national news, they keep badgering at the same thing,” VanDeBoe said.
“If you look at the Quincy economy, our unemployment rate is higher than we would like, but it's not that bad … and we've got people who are comfortable in the economy looking for houses.”
Bobette Cawthon, president of the Quincy Association of Realtors Board of Directors, agrees that Quincy has been “very fortunate,” with little of the depreciation that hit double digits in parts of Florida, California, Nevada and Arizona after their housing bubbles burst in 2007.
“The price of houses has gone up and that is reflective of the job situation in Quincy being relatively stable and people are able to make money and afford a nice home,” Cawthon said.
Sherry Schaefer, vice president of the mortgage department at Mercantile Bank, saw a lot of people refinancing their mortgages last year to take advantage of record low rates — under 4 percent. Later in the year, she said more of the mortgage activity involved the purchase of homes.
“Maybe we're starting to see that trend, and in 2012 we will see more of a purchase type of market,” Schaefer said.
Mistaken perceptions hit lenders as well as real estate brokers. While banks nationwide have tougher criteria for many loan programs, there are still loans available.
“With where the mortgage rates are right now, it would be a fantastic time for people to move up to their next home,” Schaefer said.
Mike Mahair, president of State Street Bank, agrees that Quincy property sales have weathered the downturn well. He sees few bankruptcies in the market and has not seen prices plummet as they did in some of what had been among the nation's hottest housing markets.
“In my opinion, I don't know that things ever got too bad in the Quincy market,” Mahair said.
Six to 10 years ago local home prices were rising about 2 percent per year, while Las Vegas, and select markets in Florida and California, saw 20 to 25 percent annual increases.
“We have not seen the huge upswings and declines in a down market,” Mahair said.
In addition to housing sales, lending institutions have seen strong results in other property categories.
Some properties that sold along the Broadway corridor in the past year fetched good prices. Farm land has been rising in value as well.
“Eighty acres in (Quincy's) south bottoms sold for $10,000 an acre not long ago. That's big bucks for farm ground,” VanDeBoe said.
Cawthon said the one local area where she has seen a downturn is in “smaller outlying communities” where buyers would tend to work or shop in Quincy. She believes the slower sales relate to higher fuel prices.
“We have got some programs out there to help people buy rural housing with little or no money down. I think that, and the low mortgage rates, may spark some more sales this year,” Cawthon said.
Both Schaefer and Mahair are waiting to see how the Down Payment Plus Program is unveiled this year. Grants from that program have helped buyers who are either buying their first homes or are in need of help coming up with a down payment. Most of the homes sought through the program do not exceed $100,000 to $125,000.
“We probably won't know the parameters of the grant program until the end of February,” Schaefer said.