1995 RESIDENTIAL SALES AND CONSTRUCTION DROP FROM 1994 RECORDS IN CAPE, JACKSON, SCOTT CITY

Sales of existing houses and construction of new houses were down in the Cape Girardeau, Jackson and Scott City areas in 1995, but it's understandable.

"It's still not that bad," said Martha Hamilton, owner/broker at Coldwell Banker Hamilton Realty. "This year is not as good as last year, but 1994 was a record year just about everywhere."

Compared to some recent years, 1995 was a very good year, she added.

"We're seeing a flurry of late-year interest," said Hamilton. "We've had a number of inquiries during the past week to 10 days, and with interest rates like they are now, that should continue into 1996."

Existing house sales as of Dec. 27 were more than $55 million, down 14 percent from the $63.6 million in sales in 1994, according the Cape Girardeau Multi-List Service Inc., which keeps tabs on property sales in the immediate area.

A year ago, 837 properties were sold in the three-community area, at an average of more than $75,000. Some 686 properties were reported sold as of Wednesday, for an average of $81,488, totaling $55,900,592, noted Linda Pruitt of the multi-list service.

"This is still a strong market," said Hamilton. "We still have good interest rates and financing is available."

Mortgage rates at the start of 1995 were 9 percent but are now between 7.5 and 8 percent.

"Sales have been steady this year," agreed Gerald McElrath of Heartland Realty at Jackson. "It's been a good year. Financing has been good and rates right now are good."

National statistics rank 1994 as one of the best real estate years for housing since 1978. Things leveled off this year, noted a spokesman for the National Association of Home Builders, but it was just "a softening, not a collapse."

Nationally, new home sales in 1995 were down 8 percent during the first three quarters.

Regionally, new home sales are down 3.5 percent in the Midwest, and 15 percent in the St. Louis area.

Meanwhile, new home permits are also down, but construction of duplexes and apartments is up.

In Cape Girardeau, only 61 new home starts were recorded the first 11 months of the 1995, at a value of $7.4 million. In 1994, 105 new homes were started at a value of $14.3 million.

But there has been an increase in duplexes and apartment units in Cape Girardeau as well, said Rick Murray, inspections services director. Permits were issued this year for 18 two-family duplex buildings, at a combined cost of $2 million. Permits for 79 new apartment units have been issued.

Increases also have been recorded in home expansions and remodeling in Cape Girardeau, Murray said. More than 130 permits were issued the first 11 months for decks, carports, garages, expansions and remodeling. Fewer than 100 permits were issued for the same improvements in 1994.

New home permits are also down at Jackson, where more than 200 new home starts were recorded in 1994. Although fourth-quarter totals were not immediately available, more than 100 new home permits were issued the first three quarters.

Jackson has experienced an explosion of home building over the past two years -- 207 in 1994 and 151 in 1993.

Residential construction is also down throughout Missouri. The 10-month report, through October, shows $1.98 billion in residential construction, down from the $2.2 billion at the same time in 1994.