David Gring

Last week, I shared some of the 2009 market data for Porter and Lake County, Indiana. The statistics were tabulated via the Greater Northwest Indiana Association of Realtors Multiple Listing Service (GNIAR MLS). This week, I would like to concentrate a little closer on the market data for some of the larger cities in Northwest Indiana. Family and friends frequently present questions, asking what city has the most sales velocity and where is the market moving. I hope that you find the data interesting!

•In Porter County, 55% of home sales came from Valparaiso (811 out of 1,465, total). Portage ranks second in the amount of homes sold in the county, with 240 (16%) this past year. Chesterton ranked third, with 138 (9%) homes sold last year. These percentages are fairly close to 2008, with Valparaiso sales representing 53% of the market in the county, Portage at 18%, and Chesterton at 12%. There were 1,629 homes sold in Porter County in 2008.

•In Lake County, 16% of home sales came from Crown Point (671 out of 4,259, total). Hammond ranks second in the amount of homes sold in the county, with 615 (14%) this past year. Merrillville ranked third, with 392 (9%) homes sold last year. The percentages are almost identical to 2008, with Crown Point the same, and Hammond and Merrillville down only 1%, versus 2009. There were 4,648 homes sold in Lake County in 2009.

•In Porter County, Chesterton had the highest average selling price in 2009, with each home averaging $206,283.00. This figure was down 9% compared to the average selling price in 2008. Valparaiso was second in the county, with each home averaging $194,166.00. This figure was down 1.5%, compared to 2008.

•In Lake County, St. John had an impressive average selling price of $266,346.00 in 2009. This figure was down 6.5% compared to the average selling price in 2008. Winfield ($227,287.00), Dyer ($205,122.00), and Crown Point ($188,968.00) were second, third, and fourth, respectively. Each of these three cities saw a drop of almost 10% in their average selling price compared to 2008.

While there are a lot of numbers to digest above, Valparaiso and Crown Point continue to lead their county in the number of homes sold. Both cities have excellent school systems, a vibrant downtown atmosphere, retail and restaurants that appeal to the public, and good access/transportation for Chicago commuters.

Friends commonly ask why there are so many more sales in Lake County versus Porter County. When you consider U.S. Census data, the total amount of housing units, the total amount of businesses, population, and even building permits are all basically 3:1 in favor of Lake County. Also, the proximity to Cook County and the City of Chicago is very appealing to many people who work in Illinois.

In closing, there are many factors that can and should play into the decision of the new homeowner when considering where to move or build. Some of the larger cities in Lake and Porter County will offer great amenities, such as public facilities, retail, and restaurants. Some of the smaller cities will offer a quaint, charming, and nostalgic feel to hometown America. Jump in the car with the family, and see what living in Northwest Indiana has to offer to you!

With the start of the New Year, market data can be tabulated for the past year via the Greater Northwest Indiana Association of Realtors Multiple Listing Service. While we can analyze this data at anytime during the year, I always enjoy examining the trends and trying to forecast what might take place in 2010. Here are some interesting results from 2009, when compared to 2008:

• Porter County had an average home selling price of $182,013.00, down 5% from 2008; Lake County had an average home selling price of $121,244.00, down 9% from 2008.

• In Porter County, the average days for a home to be on the market was 150 days, an increase of almost 30 days from 2008; in Lake County, the average days on the market was 136, an increase of 9 days from 2008.

• Porter County had a very slight drop in the actual selling price of a home compared to the list price, with an average of 95.2%, down a half percent; Lake County decreased 1% in the selling price of a home compared to the list price, with an average of 94.9%.

• The total amount of homes sold in Porter County in 2009 was 1,465, down 10% from 1,629 in 2008; the total amount of homes sold in Lake County in 2009 was 4,259, down 8% from 4,648 in 2008.

The market is continuing to show well-needed corrections, especially with the decrease in the average home selling price. With the amount of inventory on the market, prices need to continue dropping. I believe that this trend will continue in 2010, probably a lower percentage than this past year. While the average home selling price dropped 5% this past year, it dropped 3% the previous year. The amount of foreclosed homes on the market continues to increase, and this is driving prices down. We will see this trend continue into 2010.

While the average days for a home to be on the market increased in both counties, I believe that this average will level more this year. Potential homeowners are taking a longer time deciding on their new home, there is more inventory, and obtaining credit from lenders is more arduous.

There is no reason to be discouraged by the market data, above. This is a terrific time to buy property in Northwest Indiana! Home prices are very competitive, building materials are down, developers want to sell their land, the government is providing some terrific incentives, and interest rates remain at historic levels. Let's have some fun in 2010!

Most customers that are commencing the new home building process are not aware of all of the intricacies involved in selecting a homesite. After setting aside the important issue of price, forethought needs to be made for what city to build in, where to build within the city, and noteworthy building restrictions, such as minimum square feet. While site costs, grade of lot, location of lot in subdivision, and the location of the home on the lot are very important issues, I'm going to outline some of the more broad issues in determining your new homesite.

One of the first questions that I ask my customers is what geographic area, and more specifically, what city that the family wants to live in. Examination of the school system and demographics of the community, such as median age, median household size, and median household income are important to scrutinize. The local Chamber of Commerce is typically the best source to obtain accurate and up-to-date information on these items.

After the city is chosen, it is important to determine where you want to live within the city. Proximity to immediate family, distance to work, and access to highways, trains, or bus depot typically set some of the parameters for the subdivision of choice. If you are an empty nester, perhaps location to the grocery store, restaurants, and the shopping mall is important. If you represent a family with three children, proximity to school, retail, and the local YMCA might be imperative. If you are single, being close to the local healthclub, the movie theater, or your favorite pub can be significant. Where these businesses, your church, or the majority of your close friends are located can have an important influence on the subdivsion of choice.

Once the subdivision is selected, secure a copy of the restrictive covenants so that you can determine what building requirements are necessary. In addition to simply asking the subdivision developer, you can go to the County Recorder's Office and obtain a copy of the recorded covenants for a nomimal fee. The recorded covenants can be anywhere from four to forty+ pages in length. Review the minimum square feet for the type of residence that interests you - ranch, 1.5 story, Bi Level, Tri Level, Quad Level or 2 story home. Typically, the basement and areas such as porches, breezeways, and garages will not be included in the minimum square feet requirements. Make sure that the size of the home that you want to build can be built in that subdivision.

In closing, the best case scenario for securing the homesite of your dreams is to have your new home builder involved in the process, from the start. Your builder will already have an idea of your budget and the type of home that you want to build. They will also have first-hand knowledge of local subdivisions and where the majority of home building is taking place. Look for more blog posts on Selecting Your Homesite at Northwest Indiana Homesites m.

I'm sure that most American's, and certainly myself included, have been thinking about their stock portfolios and the financial well being of their family. My wife and I have made recent adjustments to where we are buying groceries all the way down to the amount of activities that we are involved in, that require time and money. I have found myself filling-up gas at the stations that I see the best price at, and even spending time on Sunday's looking through the circulars - never really did that before.

Additionally, I know from my religious upbringing and my faith, that we need to be good stewards of our money. I believe that everything that I have is a gift from God, and I need to be smart with how I save my money and how I spend my money. I also believe that God knows what each one of us need, and because of our faith in him, he will provide those needs. I'm not trying to employ a religious influence on anyone, but this is what gives me peace and hope that despite all that is going on around us, everything is going to be alright.

With that being said, for those that are considering buying a new home, there are numerous reasons to buy, now. Interest rates are still very solid, with slight daily fluctuations taking place both up and down. The speculation in everything that I have read is that mortgage rates are still going to come down over the next six months, especially with the importance on the housing industry and how that drives our economy. There is not doubt that the uncertainty with the winner of the presidential election is playing havoc with the markets. Once the winner is declared within a month, the pundits are saying that a lot of this volatility is going to go away.

Next, building costs have stayed in-check for over a year. Our company decreased the pricing on our homes early this spring almost 4% across the board, since building costs had not risen, and in an effort to spur more sales for us. That was a good decision, and we have had a very solid spring and summer this year. Customers that are signing contracts this fall can still benefit from the price stability. In looking ahead, unfortunately it doesn't appear that there is any doubt that pricing will rise to some extent in early 2009, especially with the inflationary factors.

Lastly, in the articles that I have read, home appreciation is still taking place in our market. In NW Indiana, we never saw the double-digit increases in appreciation, and we haven't seen the double-digit decreases, either. Home appreciation is typically greater and faster with new construction, versus an existing home. Our local press and especially our national press wants us to know about all of the negative factors in the marketplace. While there are some to note, most of it is not the "doom and gloom" that they want us to subscribe to. Again, I feel the current political process that is taking place is influencing a lot of what we read in the newspapers and see on television.

I want our potential customers to feel good about their decision and excited, knowing that we will build an excellent home for them, with the details and finishes that they want, in a very timely manner - five to six months.