Local home sales up so far in 2011

Local home sales are increasing in 2011, even without last year's tax incentives for first-time homebuyers.

More houses are selling and they're selling at higher prices in 2011, according to Multiple Listing Service statistics for the Cape Girardeau County area.

These trends were a pleasant surprise to Bill Cole, owner of Realty Executives in Cape Girardeau, who feared the "artificial stimulus" from last year's tax credit would leave sales lagging this year.

"At the first of 2011, my gut feeling was we would begin the year trailing 2010 numbers but overtake 2010 numbers as the year progressed," Cole said. "It's also encouraging to have sold nearly the same number of homes as 2008."

During the first quarter of 2011, sales closed on 170 homes. That's just four more homes than in the first quarter of 2010, but 26 more homes than the first quarter of 2009. Sales in the first quarter of 2008 totaled 172.

The dollar volume of sales in the Cape Girardeau area for the first quarter of 2011 is up 11.6 percent from 2010.

This time last year, real estate agents were scrambling to get contracts completed by the April 30, 2010, deadline to receive the $8,000 first-time homebuyer federal tax credit.

Laura Ritter of Century 21 Ashland Realty said she didn't think last year's tax credit brought in more buyers.

"People who got the tax credit were couples just getting married or people who just graduated, and they were going to buy a house anyhow," Ritter said.

She expects her sales to be strong in 2010. She's already closed on more than $2 million in properties and has about 50 homes listed for sale.

"I'm having a great year, and I tell people that because they hear all the bad news about the housing market in the national media," she said. "Things are bad in Florida or California or Arizona, but we're not in that bubble."

The average sale price in the first quarter of this year is 9 percent higher than last year: $141,445 compared to $129,754 in 2010.

There are also 15 percent fewer houses for sale this year, compared to the same time last year creating less competition for sellers.

"It's still a buyer's market, but we're seeing prices gradually coming up," said Jane Clark, a sales counselor with Key Realty Century 21. "We're just beginning the peak season. I think people are looking now and buying in the range they were prior to the downfall."

Clark expects to see increasing sales throughout the summer but said she isn't seeing an increase in new home construction.

"There are a couple builders who are building spec houses, but we don't see new construction like we did a few years ago," Clark said.

Middle-priced and higher end homes are selling much better this year, Clark said.

About 90 percent of all home sales in the Cape Girardeau area are priced below $250,000, according to MLS data.

"Interestingly, sales of homes greater than $450,000 in the first quarter of 2011 were nearly what they were for all of 2010, so that's encouraging news," Cole said.

While local home sales swing up, foreclosures are going down considerably. During the first quarter of 2011, the number of foreclosure filings was down 40 percent from the same time period last year, according to Scott R. Clark, Cape Girardeau County recorder of deeds. A total of 37 trustee deeds were filed through March 31 this year, compared to 62 in the first quarter of 2010. Last year, a total of 206 foreclosures were filed in Cape Girardeau County.

Across the nation, more people signed contracts to buy homes in February, according to the National Association of Realtors' pending home sales index. Sales rose 4 percent in February across the Midwest and 2 percent nationwide.

"In all, I'm encouraged but we only have one quarter on the books. In fact, most markets would absolutely love to have our numbers," Cole said.

Concerns about the economy, the federal deficit and job stability are still weighing on the minds of homebuyers locally and across the country.

"I think people have faith in our area. They still realize in our area, it is still a good investment to buy real estate here," Ritter said.

By the numbers

Cape Girardeau area first quarter home sales

* 170 homes sold

* 657 homes on the market

* $141,445 average selling price

* 141 average number of days on the market

mmiller@semissourian.com

388-3646