HOME STARTS STEADY, BUT DOWN FROM '94

The residential housing market in Cape Girardeau, Jackson and Scott City areas so far in 1995 is not as good as the record year of 1994, but better than other previous years.

Sales of existing homes and construction of new homes are down during the first three quarters of 1995, but "it's not that bad," contends Charles C. "Bud" Leming of Century 21 Ashland Realty. Leming is president of the Cape Girardeau County Board of Realtors.

"This year is not quite as good as last year, but 1994 was one of the best housing years in a long while," added Leming.

Karen Mogelnicki agrees.

"This is a strong market," said Mogelnicki, owner/broker of Century 21 Key Realty. "Last year was such a boom year that it is hard to compare. Right now financing is available and we have good interest rates."

National statistics rank 1994 as one of the best real estate years for housing since 1978.

Things have leveled off some this year, noted Jim Irvine, president of the National Association of Home Builders. But it's just "a softening, not a collapse."

In August, sales of single-family homes fell about 9 percent nationally, but it was the first decline in four months.

Locally, activity was good in the August new-home market, with a number of new starts in the area, including 10 new-home permits in both Jackson and Cape Girardeau.

New-home permits are down, however, in both of these communities for the year.

"We're a little down over last year," said Steve Wilson, city administrator at Jackson, "but last year was a record year here with more than 200 new home starts."

Two hundred and seven, to be exact. Jackson has experienced an explosion of home building over the past two years.

In 1993, a total of 151 new homes were built at a cost of $10.3 million. This was followed by 207 in 1994, at a cost of $18.6 million, and this year Jackson is not far off the 1994 pace. Through August, 100 permits had been issued in the amount of $8.7 million.

The number of Cape Girardeau single-family new-home permits is also below last year's. Through August, 38 permits had been issued in the amount of $5.3 million. A year ago, a total of 105 new home permits were issued in the county's largest city.

Taking up the slack this year, however, have been duplex homes. A total of 18 permits have been issued for the two-family homes. Also boosting the housing figures have been new apartment buildings with a total of 79 units.

Total real estate sales through Sept. 18 of this year were $44,413,043, down about 14 percent from the $50.6 million total during the same period of 1994. Sales include a total of 606 properties in the Scott City, Jackson and Cape Girardeau areas.

The lion's share of real estate sales were in the city of Cape Girardeau, which had $22 million.

"This is still a good year," said Carl Blanchard, vice president and general manager of Century 21, Ashland Realty, and a former preisdent of the Cape County Board of Realtors.

"Sales have been steady, interest rates are good and the financing is out there."

Interest rates averaged 7.85 percent nationally in August, down from 9.15 percent in January, according to the Federal Home Loan Mortgage Corp. They averaged just 7.62 percent this week.

The difference part of a year can make is huge. The monthly payment on a $100,000 mortgage with a 7.5 percent interest rate is $699, while the payment on the same loan with a 9 percent rate is $805 -- a difference of $106.

"There are a number of financing packages out there," said Thomas L. Meyer. "Almost anyone who wants to buy a house can buy one."

Meyer of Thomas L. Meyer Real Estate Company added that homes in the $85,000 to $135,000 range sell quickly. He added, however, that there is still a need for lower-cost housing in the $65,000 to $85,000 range.

"I think we're going to see some lower-cost housing," he added. "It may be in Scott City or Jackson. Or it may be right here in Cape Girardeau, but I think it's going to happen."

Nationally, new home sales for the first eight months are only 1.5 percent below those during the same period last year. Regionally, new-home sales are down 3.5 percent in the Midwest, and down 15 percent in the St. Louis area. The only area with an increase is the West Coast area, with a 2.3 percent increase.

Residential construction, which includes one- and two-family houses and apartments, totaled $237,469,000 in Missouri in August, down 6 percent from the $251,347,000 figure of August 1994.

For the year, Missouri residential construction is down, from $1.8 billion in 1994 to $1.5 billion during the first eight months of this year.