OPTIMISM BUILDS CONCERNING HOME SALES; REALTORS FEEL GOOD ABOUT PROSPECTS IN '93

Lower interest rates and increased consumer confidence should strengthen the real estate market and boost residential house sales in 1993, say realtors in the area.

"We expect to see 1993 about the same or a little better than 1992," said Carl Blanchard of Coldwell Banker Blanchard & Associates Realty, which has offices at Cape Girardeau and Jackson.

Martha Hamilton of Century 21 Key Realty agreed.

"Interest rates have been good," said Hamilton, president of the Cape Girardeau County Board of Realtors. "Consumers are becoming convinced that we are out of the recession."

Hamilton said a lot of homebuyers were taking the opportunity to move into larger homes and a lot of first-time buyers were getting into the market.

Art Blaylock, vice president of the Cape County Board of Realtors, echoed the optimism. "Consumers are enjoying lower interests rates," said Blaylock, of Heartland Realty in Jackson. "We sell homes in the Jackson and Cape Girardeau area, and 1992 was an exceptional, good year."

Nationally, low mortgage rates mixed with the fear of rising mortgage rates has spurred home sales growth in housing markets throughout the U.S. Sales of existing homes were up in each region of the nation in November, according to the National Association of Realtors.

"Steady increases have been noted in every region in the nation," said William S. Chee, president of the National Association of Realtors. "Many people decided to buy after seeing a spike in interest rates during a time of economic recovery."

Realtors forecast that sales will be about 3.6 million units for 1992, the best since reaching a similar level in 1988. They also predict that sales will total 3.67 million units in 1993, highest since 3.83 million in 1979.

The biggest sales increases for November were in the South, up 7.7 percent, with a median price there of about $92,000. Sales in the Midwest rose 4.9 percent. The median price was $82,300.

In the West, where the median price fell 3.2 percent, to $137,900, sales rose 3.8 percent in November. Sales also rose 3.7 percent in the Northeast.

In the Cape Girardeau area, good sales reports came from several fronts.

Blanchard said sales and listings for his firm were up from 1991. "We don't have December totals in yet," he said. "But, as of Nov. 30, our sales for 1992 were up about 20 to 25 percent over the same period a year ago. Our listings were up about the same percentage."

Blanchard agreed that a lot of the increased activity is due to interest rates.

"Now is a good time to buy a home," said Blanchard. "Interest rates have stopped their downward spiral and have edged up a bit recently, and people are buying."

Blanchard said that when rates are spiraling downward, buyers "wait" to see just how low they would go. "But once they stabilize and start back up, people buy."

Blanchard said although rates were edging up, he didn't expect to see them go too high.

"What we're hearing is that mortgage rates may creep up a bit," he said. "As long as we stay under 10 percent, we'll sell houses.

"Buyers also have some mortgage choices," said Blanchard. "Lenders are offering choices to buyers adjustable, fixed, whatever. If a person moved into the area and is looking to be here only five or six years, they may want to go with an adjustable. If they're looking for long-term, the fixed rates are still good."

Blanchard's local Coldwell Banker franchise has been honored for sales performance. "We were recognized for being in the top five in gross commissions earned in our size bracket," he said. "We were third in the Midwest region, which comprises 13 states in the Midwest. We're pleased with that performance."

"1992 has been an excellent year," said Hamilton. "Activity has increased, especially in December."

Hamilton said the time between Thanksgiving and Christmas is usually slow. "But this year a lot of buyers were trying to find property during this period of time," she said.

Hamilton said statistics provided by the Multi-List Service indicated noticeable increases in sales in Cape Girardeau County and parts of Bollinger, Perry and Scott counties.

"Total residential home sales volume for 1991 in these areas was $30.3 million," said Hamilton. "Sales in 1992 will top $47 million."

The Multi-List Service represents sales by members of the service, which has 24 companies and more than 200 individual realtors.

"Although it includes a wide area, the lion's share of sales activity was in the Cape Girardeau-Jackson area," said Hamilton.

Some other statistics provided by the Multi-List Service revealed that the average time to sell a house in 1991 was 143 days. That time fell to 114 days in 1992.

"We're real optimistic about 1993," she said. "We feel like the interest rates will remain about the same, and there are a lot of people who are still looking for property."

Blaylock said farm sales were also good in 1992.

"We do a lot of farm sales," he said. "This is the best year we've had for farm sales."

Blaylock said interest rates had a lot to do with real estate sales.

"There are a lot of people out there ready to buy," he said.

New home sales have also been good in Cape Girardeau for 1992.

"We're well ahead of 1991 in home permits issued,"said Rick Murray, supervisor of Cape Girardeau Inspection Service.

Unofficially, a total of 98 permits have been issued for new homes, most since 1988, when 105 residential home permits were issued.

The average price of new homes the first three quarters of 1992 in Cape Girardeau was $120,000, based on prices of new-home building permits. That figure will go up for the final quarter, where 27 permits have been issued in the amount of more than $3.3 million, for an average of $124,000. Only four home permits were issued in December, but a total of 14 permits were issued in November and 13 in October.

A month-by-month check of city building permits revealed an unofficial total of 98 permits having been issued for new homes (this includes four or five duplex permits) in the amount of $11.7 million as of Dec. 28. That averages more than $120,000 each.

The total of new homes constructed in 1991 was 72 at a cost of about $8 million, averaging a little over $111,000.

"Home permits have been issued in all price ranges, said Murray. "Many of the permits have been in the $100,000 to $115,000 range, but they have ranged from $60,000 to more than $350,000."

There was no letup in home permits in November, with a total of 14 in the amount of $1,602,000, an average of $114.430.

With all construction figures in through Dec. 28, construction unofficially passed the $46 million mark for 1992. That compares to about $25 million in 1991.

"That's probably a record over the past decade," said Murray. "I know it's a record in recent years."

Swimming pools, decks, patios, garages, home remodeling and additions continue to add to the monthly totals. During the past two months, these permits added more than $100,000 to the total.