Low Indiana Mortgage Rates, Strong Economy Boost Housing in Lakes Region
The lakes region of Steuben County, Ind., remains a stable housing market, but speculators are jumping out as the industry slowdown continues, the Fort Wayne Daily News reports.
The number of available houses around the lakes, a popular location in the region that has exploded during the last several years, has increased. And now that many investors are trying to take profits, the market is becoming crowded with sellers.
And sales are taking longer to complete.
The same problems are occurring around the country as a slow housing market lingers after several years of price increases and building. Housing sales in Indiana dropped 1 percent in the third quarter over the same period last year. Decreases were recorded in 37 other states; U.S. sales were down 12.7 percent.
Jerry Kohart, a real estate agent at Coldwell Banker Roth Wehrly Graber in Angola, Ind., said the region had a good run for several years and remains optimistic about the coming year.
“It was probably a slowdown that was needed even though we didn’t want to see it,” he said. “People still need to sell, (people) still need to buy. That’s why it’s only off 6 percent.”
The area market has been off about 6 percent in number of units and dollar volume, which he said is not so significant. Lower Indiana home mortgage rates and sewer system installations in the lakes region, including Steuben County, helped fuel a major building boom in the area. Cottages were demolished and replaced with single-family homes and mansions.
Indiana’s Lakes Region has become a destination for year-round residents, in addition to being a popular haven for summer recreation.
Average home values in Steuben County increased 111 percent between 1990 and 2005, as lake property grew more and more popular. Last year, the 302 building permits issued in the county were a slight decrease from 2004. But the new units cost $55 million, a 22 percent increase over 2004, the highest value since 1990.
The rate of housing starts along the lakes has slowed down, but rebuilding on existing lots continues to remain strong after four or five years.
Home prices also dropped nationally and in the region as home mortgage loan costs have grown too much for many would-be borrowers. The third-quarter median single-family home price in the Fort Wayne metro area was down 4.8 percent from last year. Nationally, the median single-family home price was down 1.2 percent.
Ginger Forbes, an appraiser based in Kendallville but who works in Steuben County, said she had a busy summer working in the lakes region this year and expects a busy spring next year. Forbes generally is called in for home appraisals after the home purchase contract has been accepted.
“You always have a good market in Steuben County,” Forbes said. “I guess maybe people are a little more optimistic, they’re looking to spend money. I think people are feeling better about the economy.”