Today’s media is filled with negative reporting on the nation’s real estate market. There is no such thing as a “national real estate market”. From state to state, city to city, neighborhood to neighborhood there are many variables that affect the local market. Local economic conditions, which include employment opportunities, labor force availability, jobless rates, local government initiatives, and interest rates, directly impact the value of real estate. The economic conditions within Porter County, and specifically the City of Valparaiso, continue to outpace the nation and the state. Neighborhood specific variables that impact real estate include the number of homes on the market, the amenities within these homes, the square footage of the home, the number of new construction homes, and the number of available lots for future construction. The following is a chart that will illustrate the activity of home sales within Valparaiso*:
Valparaiso SOLD Homes 2008 2007 2006
Condominiums 91 126 137
Single-family under $250,000 312 387 388
$250,000-299,999 43 58 61
$300,000-$399,999 50 48 53
$400,000-$599,999 8 24 21
$600,000-$799,999 1 3 2
$800,000 and up 3 1 3
TOTAL 508 647 665
There are currently 408 single-family and condominiums FOR SALE.
My purpose in distributing this information is to give you real data that reflects the health of your neighborhood market. The year 2006 perhaps is the best illustration of a “normal market” in Valparaiso. The next step in the analysis is overlaying the activity that is already being seen in 2009 due to the reduction in mortgage rates. Record low mortgage interest rates have significantly increased showing activity over the same period in 2008. In our office alone we are seeing a jump in buyers scheduling showings over the number of buyers active last year at this time. This means there are more buyers in the market.
This is a terrific time to sell and buy. For example, if the market analysis shows that your $200,000 house is now selling for $180,000 (a 10% decrease) and you desire to upgrade to a $300,000 house, now selling for $270,000 (a 10% decrease) you have a net equity gain of $10,000 ($30,000-$20,000). In addition, your new mortgage rate may be less than 5%! Before you consider refinancing or remodeling you should explore the opportunities for buying a new home.
*Based on information from the Greater Northwest Indiana Association of REALTORS®, Inc. Multiple Listing Service for the period January 1, 2006 through December 31, 2008.