By GEORGE KUNKE
SOUTH BEND – Though it may be moving along at a seemingly snail’s pace, the economy in north Pacific County is slightly picking up. The past few months has shown steady progress in the local logging industry, which is an indication that the housing market is starting to improve as well.
“The housing market is starting in on the upswing,” Bill Kennedy, broker for Coldwell Banker in South Bend told the Herald Friday. “I’d say it’s probably up maybe 5% up in the last three months, which is a start.”
North of us, housing has picked up for sellers in King, Thurston and King counties. “What seems to be happening is that things in Seattle and Tacoma are markedly better than what they have been (since the start of the year). There’s usually a trickledown effect, and hopefully, fairly soon, we’ll see some of that, too.”
Kennedy said that even though the market is slightly improving for the buyer, it still has not turned the corner.
“There’s still a lot of foreclosures on the market and until that slows down, it’s a little harder for other people to be getting what they should be getting on a market basis,” Kennedy said.
“From the reports I’ve heard, things are going to continue to increase (with sales), but then it’s supposed to drop at the end of the year,” Kennedy said. “But I’m optimistic; we’re getting more phone calls and were starting to show more properties.”
Kennedy pointed out that as a result of the recession and the hit that the housing market took nationwide homes in north Pacific County that were valued at $150,000 in 2009 have dropped to about $110,000 to $115,000 today. “As far as buying is concerned, there’s good deals out there for the buyers,” Kennedy said. “It’s still a buyer’s market.
Nationally, last Thursday mortgage rates rose at the highest rate to 4.46%, which is almost the highest in two years. The increase was the highest in a one-week period in 26 years. Just two weeks ago from that point, rates were at 4%. In November, rates were at a low of 3.31%. However, most experts maintain that the increase will have a “small effect” on sales and prices. Also, American consumers are spending more despite higher payroll taxes and government spending cuts, and auto sales were up 5.7 percent in May, which are good signs that the recession really is ending.
“Things are still especially tough for people who owe more money than what their house is worth, but hopefully for them the job market will turn around,” Kennedy added.
There are three excellent realty companies in South Bend. If you’re interested in purchasing a house, contact Davis Insurance & Real Estate Agency Inc (875-6261), Harbor Realty LLC (875-5100), or Coldwell Banker Bayshore Realty (875-6360).