The latest existing homes sales report that came out last week from the National Association of Realtors reported a drop in the national median home price to just under $196,000. This is $50,000 higher than the median price for the Midwest, which is boasting some true affordability this quarter.
At a $143,000 median it's no wonder than many coastal dwellers have been making the move inland. The out-migration from certain high priced states, such as California and Florida, has boosted population in the Midwest.
But despite affordable prices, a good portion of our reports this week indicate localized areas are still having a hard time -- affected in part by ailing local economies.
Tammy Wolf in Lake Barrington, Illinois reports that her zip code was hardest hit in the $1 million+ market -- where there are lots of homes to choose from. And John Philliber of Bella Vista, Arkansas, is reporting that while land is still moving in the area -- there is a glut of new home inventory on the market -- causing elevated prices. If you're looking for a healthy market in that area -- consider commercial real estate.
And three Midwest states have been ranked among the six highest states in the nation for the number of foreclosures, according to data from Foreclosure.com. During January, Ohio had the second highest rate of foreclosures in the nation -- due in part to the loss of manufacturing jobs in the state. Michigan and Indiana were the other states in a Foreclosure mess. Brad Geisen, president of Foreclosure.com expects that the rate of foreclosures in the Midwest is probably set to increase -- and property values could subsequently decline.
Tom Lane - 785-828-2599 - Topeka, KS - "Low interest rates are the strong segment of this buyers market."
Terry Tidewell - 903-277-3225 - Fort Smith, AR - "Lower priced homes are selling fast."
Teresa Cheatham - 903-278-0624 - Fort Smith, AR - "Our market is down 10%, but things are looking to get better."
Becky Robertson - 479-644-4068 - Bella Vista, AR - "Lake front homes are still moving, Prices have remained the same but they are staying on the market longer. Cost of living and property taxes are still low."
Ronnie Carr - 903-277-3716 - Fort Smith, AR - "There are 7 to 8 months of inventory on the market."
Steve Raffaelli - 903-794-1800 - Fort Smith, AR - "Lower priced homes round out this neutral market."
