— Misti Strader/Tribune-Courier//Analysts say numerous ‘for sale’ signs foud throughout the county are nothing unusual and that Kentucky’s housing market has fared much better than national averages.

'No housing bust here, just a leveling off'

By Misti Strader
Tribune-Courier News Editor
mstrader@tribunecourier.com

BENTON – Plummeting home prices nationwide have caused concern among local buyers and sellers.

However, according to local analysts such as Jeff Smith, owner of Remax Real Estate in Benton, there is little comparison between the national and local markets.

“This is not California or Florida, this is west Kentucky,” Smith said. “We’ve not seen the false, drastic appreciation of home values here, we’ve just seen a slow, steady increase. So, in turn, we’ve not seen the drastic decline.”

And according to the Lane Report, a Kentucky business-oriented news magazine, Smith isn’t the only Kentucky realtor trying to get this message out.

The report cites recent attempts made by the Kentucky Association of Realtors to counter the “dismal news” of flailing markets nationwide.

The report states the Home Builders Association of Kentucky has launched “aggressive campaigns” to reassure buyers and sellers of the stability in Kentucky’s market.

According to a report by the National Association of Realtors, area sales were up by nearly $5,000, while average days on the market remained virtually unchanged at 90 to 120 days as of March.

Smith agreed and referred to the area’s current market condition as simply “a leveling off.”

“The last seven years in real estate has been very good locally,” Smith said. We have seen prices steadily going up. However, you can’t continue doing that forever. The market has to level off at some point.”

Smith said another factor in the market’s resilience has been the low rate of local foreclosures compared to that of national standards.

According to the NAR, Kentucky ranked 38th nationally in foreclosure rates earlier this year.

“When you look at property value here,” Smith said, “we are still a major draw because everyone assumes that land in Kentucky is undervalued. That is mirrored in the residential housing market, as well.”

Smith said record-low interest rates have also played a big part in the steady increase of home sales in the area.

All of those things, Smith noted, have kept Kentucky’s housing market afloat through what others across the nation are referring to as a “housing bust.”

Smith does admit, however, there is a “slow-down,” of sorts, in local housing sales.

Today, Smith said, the number of days on the market is increasing for local sellers.

That, he said, at least in part, is due to some false appreciation standards nation-wide, as well.

‘‘We are seeing some reductions in home prices because people are used to paying more elsewhere, so when they try to sell their homes here, they are pricing them above market average. You have to price your home accordingly and be patient to sell it in today’s market.”

Another reason houses are staying on the market longer, Smith said, can be attributed to increasing costs of building materials over the past several years.

“Five years ago, the cost of building a new home averaged approximately $65 per square foot,” he said, “whereas today, that cost has risen to nearly $100.

“People wanting to sell and then build have had to get more from the sale of their homes to be able to afford to build, so everyone has started to raise the price of their homes to compensate.”

And with nearly 300 homes listed on the market in the area, Smith said the trend is slowly transitioning to a “buyer’s market.”

He noted, however, sellers should not be wary of listing their homes as there are actually shortages in some price categories throughout the county.

“It is still a good time to sell,” he said. “The industry has changed to suit the buyer, and conveniences such as online virtual tours now make selling your home to a nationwide market possible.

“Also, with soaring gasoline prices, local buyers are not going to be driving around looking at houses like they used to, either. So, sellers should not get discouraged if they are not seeing ‘walk-through’ traffic in their home.”

Smith said the key to selling successfully in this market is simple. “Price aggressively and take the time to make it have curb appeal.”

He said that with all the choices on the market, a seller has to make their house stand out.

“Unless the buyer is investment minded, they want a home they do not have to do anything to,” Smith advised.

Of people’s hesitancy to buy or sell a home in current market conditions, Smith said, “there are plenty of people looking to buy homes in this area.

“Interest rates are still historically low, and real estate continues to be a great investment. Don’t listen to what you hear on the “Today” show or read in the headlines. Our market here is still very strong.”