Southern Illinois New Home Sales Going Against National Trend
By
Stephanie Tyrpak
By
Jared Roberts
Story Created:
Jan 26, 2012 at 5:19 PM CST
Story Updated:
Jan 26, 2012 at 8:38 PM CST
WILLIAMSON COUNTY -- The Commerce Department says new home sales fell again last month, making 2011 the worst year since record-keeping began in 1963.
Foreclosures and short sales are taking a toll on the new housing market. But in Southern Illinois, many new home builders are continuing to draw in business.
'They're optimistic," said Charlie Sharpe with New Horizons Homes. "They're ready to go and move on to the next phase of their life."
Business was up for New Horizons Homes in 2011, with 12 brand new houses built in Southern Illinois and Kentucky.
Less than a month into 2012, this year is looking even brighter.
"We have been just absolutely exceptionally busy," said Sharpe. "We've got a number of contracts signed."
The Marion-based building company is just one of many local contractors bucking a national trend for dismal new home construction.
The off-site stick build custom homes are selling, even if buyers are still cautious from a sluggish economy.
"We're seeing a big trend in people looking to downsize," said Sharpe. "Have nicer amenities, but a smaller square foot."
The area's lower rate of foreclosure home sales haven't persuaded too many buyers away from idea of a new house.
"Those people who are doing a good job for people, they've got work," said Sharpe.
New home sales are up slightly along the Route 13 Corridor, with 84 houses built and 64 sold over the last year.
"We're very fortunate here in Southern Illinois that we have not experienced those massive declines," said Broker Associate Doug Williams.
Williams doesn't believe foreclosed homes are much competition for new construction in Southern Illinois.
Around 400 homes in Williamson County were in a stage of foreclosure during the last 12 months.
"Those would range from approximately three months behind in their payment to actually at the courthouse steps being sold," said Williams.
Foreclosed homes come with risk and waiting periods.
"You're buying a house as is," said Williams.
Williams sees the families moving into Southern Illinois looking for newer homes. Compared to markets that saw a major housing boom, the abundant deals on foreclosures aren't here.
"The way the interest rates are, they're gonna look at that before they are foreclosures," said Williams.
Around 16% of homes sold in Illinois last year were foreclosures. That's lower than the national average.
The numbers are down from 2010, but in a healthy economy that foreclosure rate should be down around 5%.
