Sikeston housing market still strong

SIKESTON, Mo. -- Nationally, the housing market has taken a pretty big hit.

But local real estate professionals and bankers don't see that trend too much in Southeast Missouri. And in some cases, lower interest rates are creating a better market for those in the market for a home.

"The housing market in Sikeston, I think, is still very solid," said Sue Rogers, a real estate agent with First Realty in Sikeston. "We're not feeling the effects of some of the national problems, because local lenders work closely with companies to make sure they don't end up with a lot of repossessed property."

Faye Walborg, a Realtor as well as broker/owner at Century 21, agreed.

"Sikeston may have more homes on the market, but not by a big percentage," she said. "I think with the smaller towns, we're not feeling the crunch like the bigger areas."

She said 103 properties were sold January through April this year -- down just four from 107 during the same time period last year, according to numbers from SemoList.

"And we feel very fortunate properties are still moving," Walborg said.

Kathy Anglin, assistant vice president and mortgage loan officer at Focus Bank in Sikeston, said the current situation is good for those looking to purchase homes. "It's a buyer's market right now," she said.

Interest rates are quite low. That's pushing people to the market who have been thinking about it for a while.

"We have several people coming in to get pre-qualified," Anglin said. "And it is amazing what a person can qualify for."

Owning over renting

With the high cost of rental property in the area, quite a few buyers are spending the same amount of money monthly for a similar dwelling, but working toward equity.

"When you're paying rent, you re making a house payment for someone else," Rogers said. She also pointed out that the interest paid on a home loan can be listed for tax breaks on income tax returns -- but rental payments cannot.

Walborg said last week, a couple who had rented for about 20 years closed on a property. "And they're paying about $60 more [a month] to own a home and have insurance and taxes included than paying rent."

She's seeing a lot of people looking for homes priced below $150,000. "We're seeing more of those properties sell, and it's giving more of our first-time buyers and people in the medium market the chance to own a home," she said.

"Several things have changed over the past 10 or so years, creating a whole different market," Rogers said.

"The amount of repossessed properties is higher now," Rogers said. "And there is an increase in homes for sale by owners, for whatever reason."

"Sellers are becoming more savvy as well. They want to see at the time of an offer that the person making the offer has the ability to get their financing," Rogers said.

She and Walborg said that, in light of higher gas prices, people are more likely to request a place in town rather than outside the city limits, to help cut down their commute.

And although Walborg hasn't seen it, Rogers said she has some owners listing properties with her, hoping to "sell and move back into town because the gas [cost] is eating them alive."

Prospective home buyers are also getting wiser. They're looking at the utility costs and taxes, among other factors, Rogers said.

Anglin encouraged anyone interested in buying a home to check into it.

"I think people should go ahead and make an inquiry and just see what they qualify for and if it is a good time for them to buy," she said. "If they can't, they'll know what steps to take. A home is the most productive investment you can have."

She noted that while it's difficult to receive 100 percent financing, it's still affordable for most to purchase a home. But 100 percent financing is available in some cases -- as well as with some grants.