Housing market on the decline?

Assuming it's a buyer's market, Calcutta resident George White hoped to easily find a home in the East Liverpool area for his mother and father in-law, but after four months, the search is still on.

White said the family has yet to make a purchase because homes are priced high despite the sluggish economy.

White and his relatives have looked at approximately 30 houses, including foreclosures and auction sales. Homes were priced between $79,000 and more than $100,000.

White said he and his wife have kept their eyes on one foreclosed home, but for whatever reason it has not been listed for sale, and it has been nearly six months.

Frustrated, the search is causing White to lose confidence in the housing market.

He isn't the only one losing confidence. According to an article featured in a national newspaper Monday, builders' confidence in the new home market has sunk to the lowest level in more than a year. While the article focused on home builders, the housing market in general isn't necessarily experiencing an upswing.

Columbiana County Recorder Craig Brown said he hasn't noticed any positive movement in the housing market for the county.

"Certainly at this time we wish it was better ... we certainly are in a housing issue," he said.

However, county auditor Nancy Milliken said reasonable home prices can be found in the East Liverpool area.

According to her, homes are selling for less than what she valued them at in Liverpool, Yellowcreek and Madison townships.

"Sales in the southern part of the county are down by 1.2 percent. We are seeing prices drop in those areas," she said.

For example, a home valued at $50,000 by Milliken will typically sell for less in those townships.

She added someone looking to purchase a home for $40,000 should be able to find one in East Liverpool through Sheriff's sales and auctions.

"A lot depends on a person's budget and what they are looking for," she said.

Nevertheless, fewer people are purchasing homes in the county.

Statistics provided by Brown and available on the county recorder's website revealed that in 2009 only 3,348 deeds were recorded. In 2004, 5,010 deeds were recorded in the county. Each year after that the county experienced a decrease in deeds.

Between Jan. 1 and June 30 of this year, 1,641 deeds were recorded in the county, which is about the same as last year.

Brown said comparable records to last year isn't necessarily a good thing, since 2009 experienced a "huge drop" in deeds recorded. In 2008, 4,052 deeds were recorded. Nearly 1,500 fewer deeds were recorded in 2009, he said.

He believes the housing market is on a decline mainly because of a lack of confidence in the economy and the banking industry.

"Are you confident with having a big home payment? I don't think people are really confident right now," he said.

He also pointed out home mortgages have increased slightly this year, which means more people are refinancing.

Milliken said the local housing market is on a decline in some areas, but not necessarily in others.

"I think in some areas sales are up and in some areas sales are down. It would depend on the area," she said.

She agreed with Brown that home purchases were down in 2009 compared to other years mainly because of the economy.

In the meantime, more homes are available for purchase.

According to Milliken, several homes have been foreclosed and several are up for auction in the southern part of the county.

She said fewer people are purchasing homes because it is difficult to get a loan and because more people are unemployed. She also believes more people are fixing up their homes as opposed to moving.

Staying in the same location is an indicator of confidence in the housing market, Brown said.

"People aren't generally going to move unless they are feeling pretty comfortable. Obviously they are not very comfortable right now," he said.

Both Brown and Milliken believe home purchases will pick up over the rest of the year.

"I think it will get better, I think it's just a matter of time," Brown said.