Comments on: South Bend Real Estate Report: December 2009

By: Dave

Dave — Thu, 14 Jan 2010 21:48:16 +0000

I’m surprised that “cream puff” on Chapin St is still available!!!!

By: Nick Molnar

Nick Molnar — Sat, 09 Jan 2010 18:17:40 +0000

Eddy Commons is close to opening a model unit for their Champion’s Way townhomes. I expect to tour it next week and should be able to get an update on their sales at that time.

I found 55 sales in 2009 that are new construction with Weiss Homes as the owner. The sales prices were reported as $122,990 to $278,442 and came to $75.30 to $147.20 per square foot. 30 were purchased with FHA financing, 22 with conventional financing, 2 using VA loans, and 1 was a cash sale.

By: Irish Eyes

Irish Eyes — Sat, 09 Jan 2010 02:28:49 +0000

Two questions for you NIck:

(1) Any update on Eddy Street Commons, esp. sales? It is hard to guess, but I think sales aren’t going to be vigorous at all.

(2) How many homes did Weiss Homes sell according to the mls? They are the largest home builder in the area but the construction quality is buyer beware in my opinion.

By: Irish Eyes

Irish Eyes — Tue, 05 Jan 2010 17:14:26 +0000

Thanks Nick!!! I think the market is stabilizing overall in Michiana. More downward price pressures for 2010 will lower dollar sales in 2010 compared to 2007 and beforehand and compared to the first half of 2008 too. The total number of sales (not by dollar amounts but by units) should improve in 2010 compared to 2009, especially in the first half of the year but might not be until spring. I would hazard to guess that the total sales volume in 2010 will be close to 2008 when totaled but will still be about 15% below overall (more than 15% below in first half and getting above in later half). The extra vacation home market will remain anemic.

2010 will be the year where home price and market denials will be gone and sellers and banks start to move inventory by lowering prices as the prospect of holding costs add up. Foreclosures will be more common as owners give up and REO sales (and short sales) compete with ordinary home sellers as banks look to get rid of their real estate assets.

The downtown Mishawaka mixed use project will be interesting to watch….a GREAT project but hitting the market at a time when enthusiasm for real estate is at a low…a pity really. Notre Dame related housing construction will remain well oversupplied as the “investment” component of owning an extra vacation home remains negative at best. New home builders will continue to rely on government backing for tax credits and government backed mortgages…they really should just stop building but the government will continue to beat itself over the head by subsidizing new construction which will only drag out the tortuously long price declines and delay market clearing.