STRONG HOME MARKET EQUALS ROBUST RESALES

Dream homes have become more than dreams for many in recent months. Contributing factors include low mortgage rates and demand, housing industry professionals say.

"The activity level has been very heavy in the last year to 18 months," said David Dormeyer of Bridgeport Realtors Inc. "There are lots of people looking and buying too."

Low mortgage rates and willing lenders make for a combination that results in easier access to the local housing market. Plus, persons looking to sell their current homes and move into higher-priced houses are, in general, enjoying significant increases in resale values over returns seen in recent years.

"For 1993, the prices of homes went up anywhere from 5 to 12 percent, depending upon the location and the price range," Dormeyer estimated. He said those percentages apply to new and resale homes.

Appraiser Bill Dockins of Dockins Valuation Co. agrees that, on average, persons seeking to sell their homes in 1993 saw significant increases in resale values over growth rates logged the previous year.

"It's my opinion, based on the properties that we appraised, that there was a definite increase. And that increase was approximately 10 percent," Dockins said. He said that estimate applies to both new and resale homes.

"The year before, we probably saw a 5 or 6 percent increase," Dockins estimated. "We've been seeing a gradual increase probably since the latter part of 1991."

"The economy has ups and downs," noted appraiser Bob Adams of Adams Appraisal Service in Jackson. "But, generally, we've not had a set back for several years."

Typically, a homeowner can expect to see at least some increase in the value of a home from the time of purchase until it is sold. While there are many variables, Jeannie Owens of Owens Realty said, "Unless you overpaid to start with, you can expect to sell for more than what you paid."

Some years, the growth rate may only be in the 2-to-3 percent range, Adams said.

"In last eight months or so, just looking at listing prices, there seems like there's been a significant increase," Owens observed. In particular, she noted, houses that not long ago would have listed in the high 50s and low 60s range are now often listing in the low 70s.

"I think it's tied with demand," Owens said of the growth in values. In many areas, she said, "if it's priced right, it sells very quickly."

The year just past was "one of the strongest we've had in the last 10 years both in the volume of houses sold and in the number of homes built," Adams said.

Both Adams and Owens said there have been increases in demand for rental housing too, which also points to a healthy market.

An overall increase in construction costs has also contributed to higher prices. "We've had a pretty significant increase in building materials costs within the last year, that's affected things on down the line," Adams said.

However, dropping interest rates offset such increases, making purchase of a larger, more expensive home, a possibility for many.

"There was a lot of pent-up demand," Dormeyer said. "As interest rates got lower, more people could afford to buy."

The trend is expected to continue, at least for the foreseeable future, many housing industry professionals say.

"We're looking for robust sales for this area for 1994," Dormeyer said.