Area home market still solid

To the editor:To listen to the national media, one can only conclude the real estate market is collapsing. Certainly, there are markets experiencing significant corrections (Las Vegas, for example), but the dynamics in those areas are quite different from the Cape Girardeau/Jackson market.

According to the Cape Girardeau County Multiple Listing Service statistics, 2007 residential sales volume ranked in a statistical tie as the second-best year ever. Volume was only off 4.5 percent from the record-setting numbers of 2006. In total, 37 fewer units sold in 2007 compared to 2006 -- only three fewer homes per month.

The average sale price was actually up 1.4 percent. Over the past six years, the average sale price in our area increased over 36 percent, making homeownership one of the safest long-term investments available. Our area did not have the meteoric increases in real estate values, so we are far less likely to see the jaw-dropping decreases.

What make our local market feel worse in 2007 was the fact that the number of homes for sale shop up substantially. On the plus side, buyers enjoyed more selection, and prices did not increase as much as they typically would. On the down side for sellers, there were simply more homes listed for sale than there were buyers, despite steady sales.

Interest rates continue to be outstanding. Banks and mortgage companies are lending money. Selection is excellent. And the value of homeownership continues to grow. It may be rainy in Las Vegas, but the forecast appears mostly sunny for Cape Girardeau and Jackson.

BILL COLE, Owner/Broker, Realty Executives of Cape County, Cape Girardeau