If you're trying to buy or sell a home these days, you no doubt heard that home prices fell 19% during the first quarter of 2009.
(See USAToday article) http://www.usatoday.com/money/economy/housing/2009-05-26-home-prices_N.htm
But these are figures from the nation's largest cities. What about home prices right here in Mason City, Iowa?
Mike Albrecht of North Iowa Appraisal has been appraising homes more than 11 years.
"I've seen an oversupply of homes before, but have not seen sales activity this slow for this time of year," said Albrecht.
Currently in Mason City, sales transactions of single family homes are down and the average sale price of homes are down about 20% compared to one year ago.
"So, based on the data, yes, housing prices have declined," said Albrecht. "However it's not that simple. It has been my experience based on the work I do everyday that when a home in good condition sells in the current market in a good neighborhood, it still sells close to the price it would have 12 months earlier."
So who is seeing the decline in home prices?
"Lower end homes that need work are competing with foreclosures/bank-owned properties and can sell at a substantial discount," said Albrecht.
So look around. Does your home fall into this category? Albrecht says there are things you can do without spending a lot of money. But it will take some elbow grease. His advice- clean and paint.
"If a home has an obvious deficiency, such as a 1940's kitchen, depreciated shingles, broken windows, it may make sense to update that item," said Albrecht. "However if they are looking at doing something to help the resale value of the home, soap and water and a coat of paint is the best bet."
According to Albrecht, determining the condition of Mason City's housing market is not quite as easy as a market such as Des Moines. Lately, there haven't been a large number of sales in Mason City and neighborhoods have a lot of variation.
"A larger community like Des Moines may have a slower than typical market, however would still have enough sale transactions to determine exact appreciation/depreciation percentages. Additionally, larger communities will include larger neighborhoods with very similar homes. It is easier to recognize trends when identical homes are selling for more or less than they did during another period of time."
To contact Albrecht, go to his website at http://www.northiowaappraisal.com/
