In its 2009 second quarter publication, the Federal Housing Finance Authority reported Greater Lafayette ranked number 7 among the nation's 296 largest MSA's in the year to year change in home values. According to the government report, the average home value in the second quarter in Greater Lafayette was 2.25% greater than the second quarter of 2008. Personally, I believe this number is optimistic, but the relative ranking of 7 among 296 is encouraging and believable.
Interestingly enough, in reviewing the 25 largest MSA's, only three had a positive year over year change and of those three, two were less than one percent (Denver and Pittsburgh) and the third was 2.90% (Houston). The most troublesome changes in value were in Merced, CA (-27.15%), Las Vegas (-26.21%), Vallejo, CA (-23.75), Miami (-22.53%) and Medesto, CA (-22.53%).
Of the 296 MSA's, the only communities ranking ahead of Greater Lafayette were Spartanburg, SC (3.48%), Amarillo, TX (2.67%), Fort Smith, AZ (2.55%), Houston (2.42%), Macon, GA (2.33%) and Lubbock, TX (2.27%). Here is how the other major Indiana cities fared:
City: % change, rank
Anderson: -1,82% 98
Bloomington: 0.40%, 50
Columbus: -0.45%, 95
Elkhart: -2.36%, 142
Fort Wayne: 0.08%, 70
Gary: -2.79%, 152
Indianapolis: -1.24%, 119
Kokomo: -1.72%, 135
Michigan City: -0.03%, 73
Terre Haute: -3.18%, 160
Although the relative condition of the Greater Lafayette residential market is reason to be thankful, it is not time to break champagne, noise makers and balloons. We are still experience nervous buyers, inconsistent demand, on-going foreclosures and frequent short sales. However, our numbers are not getting worse, our supply of new and existing homes for sale is better matched with local demand compared to one and two years ago and there is every reason to believe we are much closer to the end than the beginning. Have faith.
