Home sales prices still falling

Reports a year ago that the worst may have been over for Yuma County's real estate market, it turns out, were too optimistic.

  According to the latest quarterly real estate report issued by the Yuma County Assessor's Office, the sales prices for homes has continued to drop. The report for the fourth quarter of 2008 shows the average sales price for homes countywide was $190,868, a decline of 3.96 percent from the previous
quarter and 12 percent less than during the fourth quarter in 2007.

  But going into the new year, there are some signs that things may be improving, said one broker.

  "New listings coming in equaled sales for January for my business," said Doug Calvet, owner and
associate broker for Coldwell Banker Crimson  Sky Realty. "That's a  balanced market. It was exciting to see. Some months last year we had three times as many listings come in as we had sales."

  Other good news, he said, was an article in Wednesday's Sun of a report by the National Association of Realtors that pending sales for pre-owned homes rose 6.3 percent in the final month of the year nationwide as buyers snapped up properties at steep discounts.

  Closer to home, Calvet said 21 contracts crossed his desk during January - two for new homes and 19 for resales. That compares with 14 contracts for January 2008 for his two offices.

  "I'm optimistic, based on a strong January. Hopefully, we're going in the right direction."

  One factor, Calvet said, is that sellers are more realistic about the prices for which they're listing their homes.

  "A year ago, sellers were 20 to 25 percent over market. Today, when they call to list their house, they ask what they should list it for."

  That said, he estimates the average sales prices have "adjusted" by 20 percent for the year.

  One thing that may be driving down prices, he said, is that banks seem to be more willing to go with a
short sale rather than have a home go into foreclosure.

  "Still, that hurts the overall appraisals for a neighborhood," Calvet said. "It's hurting other homeowners in the neighborhood. Ninety percent of the neighbors are making payments. It's the ones who shouldn't have been there that hurt everyone."

  Once those homes are gone, he said, the market can adjust on its own and "we can get over this."

  Leslie Moore, broker and owner of the Yuma Foothills Realty, offered one example of sellers having to come to terms with the reality of today's market.

  She said she just sold a house for $152,000. The house had been on the market for three years and at
one point had been listed with another broker for $259,000. Four years ago, the house would have been worth about $118,000.

   Moore said one way some people got into trouble is that they pulled thousands of dollars in equity out of their house either through a second mortgage or even mortgages that were for more than the price of their home. They then spent that money on such things as new boats, cars and diamond rings.

  "Then the prices dropped," she said. "Now they owe more on the property than they can sell it for. That's why we're seeing so many short sales and foreclosures."

  She's just hopeful the real estate free-fall has about hit bottom.

  "A lot of people are driving around price shopping," Moore said. "I've heard every year for 17 years that 'I should have bought then.' But it's a good time now. There's a lot of houses for under $100,000.

  "It won't be better next year. I tell buyers to make an offer."