Housing sales set new records in Vanderburgh and surrounding counties in 2005, despite higher interest rates.
The year finished strong, with records set in both the volume of sales and the average sale prices of new and existing houses across Vanderburgh, Warrick, Posey and Gibson counties, according to the 2005 Annual Summary of Residential Sales Data from the Evansville Area Association of Realtors.
"This is a really a novelty," said Robert S. Reid, an Evansville appraiser with Appraisal Consultants, Inc., who prepared the study. "It's the first time that I can recall each (county) exceeding its record for sales volume and average sale price."
Reid said he believes the study shows that housing remains a safe and solid sector in the economy. He said mortgage interest rates continue to be low by historic standards.
John Czoer, president-elect of the Realtors' association and a broker associate with Re/MAX First Class Realty, agreed. He was optimistic that 2006 could be another good year in housing sales.
"Even though the interest rates may go up in the 6-percent range, the rates still will be low compared to the 14 percent to 18 percent rates in the 1980s," Czoer said.
Here is a county-by-county breakdown:
In Vanderburgh County, a record 2,747 houses were sold last year, according to the study. That was a 3.4 percent increase over 2004, Reid said.
The average selling price in Vanderburgh County was $115,850, also a record. That was up 5.9 percent from 2004, he said.
In Warrick County, a total of 1,046 new and existing houses were sold last year - up 12 percent from 2004. The average sale price in Warrick was $168,650 - up 2.2 percent from 2004.
In Posey County, 247 new and existing houses were sold last year, up 16.5 percent from 2004. The average selling price was $119,084, which Reid said was also a record level.
In Gibson County 381 new and existing houses were sold in 2005. The number was up nearly 17 percent from 2004. The average price in Gibson was $98,353, which Reid said was 5.7 percent higher than in 2004.
Interest rates on home mortgages crept up last year. But, for the most part, rates remained under 6.5 percent last year, compared to rates of from 7.5 percent to 8.5 percent in the early 2000s, Reid noted.
"Housing is the area that seems to carry us through some pretty rough times, like now when we see gasoline prices soar and Ford and GM having problems," he said.
Reid said he believes the much discussed bubble in real estate prices is real for the East and West coasts. But he believes the heartland, including Evansville, will miss the bubble.
"All indicators bode well for us right now," Reid said.
