bizjournals: Midwest home sales in slump

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Existing home sales fell 13.7 and median prices were $160,400 down 0.2 percent from Marcjh 2006. In some markets, the news was even As in other regions ofthe country, the Midwesg is struggling with a tightedr mortgage market and a rise in The reports that home saless in the Twin Citiews for the first quarter of 2007 were at their lowest level in 10 years. The which used data from the Saintg Paul Area Association of said therewere 7,879 reported closed home sales duringv the first quarter of 2007 in the 13-countyh metro, down 14.91 percent from first quarter of 2006. The studgy also said that the median price of homees sold during this periodwas $223,000, a declined of 0.
89 percent from one year ago. The biggesft market in Midwest, , is in the midsy of its steepest sales declinein Crain's Chicago Business reports. Crain' s reports that new home sales fell 35 percent in thefirsty quarter, the steepest decline in 11 years. The reports in addition to a brutal winter, sales were affectex by the expectations of buyers and Sellers have been slow to come off the high prices they expectecd when the marketwas booming. meanwhile, have been slow to pay anything but the lowest InKansas City, the sales of new and existing homeas in February were 3 percentg less than the same month last year.
Sales of new houseas increased 6 percent to 364 from 345 in Januaru and decreased 24 percent from 476 last Sales of existing housex rose 18 percentto 1,749 from 1,4756 in January and increased 2 percenr from 1,712 in Februart 2006. The average price for a new house in the Kansas City areawas $285,154 in February, up 7 percentg from $267,173 the previous The average price for an existinhg house was $148,694, up 1 percent from $147,795 last year. reportws home sales dropped 16 percent in March in Central Ohio compared with March putting the number of houses sold so far this year 5 percen belowlast year's levels.
The Columbus Boarc of Realtorssaid 1,966 existing homes were sold in the regio n in March, compared with 2,344 a year earlier. Foreclosuress have continued to risein , too, takingh a 24 percent jump in 2006 to "We've transitioned into a new environment where home pricesa are essentially flat and interest rated are on the rise," said Richard chief economist with Cleveland-based A tough market has led to picky particularly on the high end, reports. In Central Ohio, 89 houses sold for at least $1 million in 2005 afted spending an average of 154 days on the while last year 85 housedscosting $1 million or more were sold after beinf listed for an average of 180 days.
"I've nevef seen this much inventory inthe $1 million-plu s range," said John Kevin Sullivan, an agent at ReMax Premier Choice. The slump, as in other areas of the is alsohaving far-reaching effects on other businessee in the region. reports that the slowdown in the housingy market drained demand for water heaters madeby A.O. Smitbh in its latest quarter. In Columbus, , the bankruptcy of a high-endc home builder has left contractors holdingthe bag. Yoccqa Custom Homes' tumble came amid a downturnn in thehousing market.
Those difficulties have been especially acutdin Ohio, where foreclosure rates have reached record But for one of the contractors who worked with George Stottlemyer, that's cold comfort. "We talked on a Fridaty and they said you can pick up the checkon Monday," said Stottlemyer, the owner of At Grade Inc. The following Monday, Stottlemyer said Yocca Customj Homes' office was cleaned out.