Year-end figures put 2000 in perspective

by Maria Hoover

SBJ Reporter

In spite of a slight decrease in the number of new single-family homes being built in Springfield and Greene County, many area home builders maintain that the market for new homes is still a good one.

And while the number of deeds of trust filed last year also dropped slightly, area Realtors predict a good year ahead.

Building permits

According to statistics from the city of Springfield's Department of Building Development Services, 377 new homes were built within the city limits in 2000, down from 394 in 1999.

Sixty multifamily homes were built in Springfield in 2000 compared to 18 in 1999. The construction of public and industrial buildings in the city also increased, from 107 in 1999 to 114 in 2000.

In Greene County, more public and industrial buildings also were constructed. The county reported 41 such permits filed in 2000 compared to 26 in 1999. The number of multifamily residences built in the county was virtually unchanged: 16 multifamily permits were filed in 2000 compared to 17 in 1999.

On the residential side, 759 new single-family homes were built in the county in 2000 compared to 961 in 1999, according to the Greene County Office of Building Regulations.

Home builder Michael Dee Smith, owner of Michael D. Smith Homes, said for his company, which specializes in larger custom homes, 2000 was not much different than 1999.

"I can't say I noticed any appreciable difference between ... 1999 and 2000, at least in the number of homes that came to me as far as bidding. The amount of activity seemed about the same, and this next year looks to me to be keeping right in line," Smith said.

He added that although Springfield's construction industry does have its ups and downs, they're not as extreme as in cities like St. Louis and Kansas City, something he attributes to the concentration of small businesses in the local economy.

"Springfield typically has never had major ups and downs. St. Louis will be going full blast then it'll just be creeping, because they've got larger businesses there, and they're more affected by (market) swings than we are. We are all small businesses mostly in this town," Smith said.

Sam Watts, president of Homes by Sam Watts, said the numbers indicated by the permit data are a reflection of what his company, which specializes in upscale custom homes, experienced in 2000.

"We didn't do as many in the number of houses (in 2000), but we did much more expensive ones ... Everything we did ... was in the $250,000 to $600,000 price range," Watts said.

"I think the sales the last six months of 2000 were a little bit slower than they had been the first six months of 2000, but right toward the very end, it seemed like it picked up quite a bit," he added.

According to city of Springfield permit information, the estimated total construction value of single family homes built in 2000 was $46.5 million, compared to $51.2 million in 1999. For Greene County, the estimated value of new homes built in 2000 was $115.3 compared to $124.2 million in 1999.

Deeds of trust

In addition to a decrease in single-family permits filed in Greene County, there also was a decrease in the number of deeds of trust filed.

According to the Greene County Recorder's Office, 14,500 deeds of trust were filed for land, commercial and residential properties in 2000 compared to 17,096 in 1999.

The value of deeds filed in 2000 decreased to $2.1 billion in 2000 compared to $3.5 billion in 1999, according to data from Fidelity Title Agency.

Jeanne McFall, president of the Greater Springfield Board of Realtors, said the real estate market was good for the Springfield metropolitan statistical area, which is comprised of Greene Christian and Webster counties.

She said according to the Realtors Multilist, which lists sales of all types commercial buildings, single-family homes and multifamily homes, the number of units sold in the Springfield MSA increased in 2000. A total of 6,800 units were sold in 2000, compared to 5,559 units sold in 1999.

McFall noted that the Realtors Multilist does include some listings for Polk and Dallas counties, but not all Realtors in those counties are Multilist members. She said the Multilist also generally does not include custom homes.

"Actually, our market probably stayed pretty stable, based on the previous year in residential (sales) ... there might have been a slight change in the number of units sold in residential and a slight average sales price change, but it stayed pretty stable," McFall said.

She added that it's likely that sales were higher in the first quarter of 2000, but they decreased later in the year when interest rates rose.

McFall, a Realtor with Jones and Company, said she anticipates that 2001 will be a "very positive" year for the Springfield area real estate market.

"The economy in Springfield isn't just based on one business, so that tends to help us out if there is a change in businesses. The other thing is the interest rate. They're predicting a lowering of interest rates. We're seeing fixed-rate (loans) today at 7 percent and no discount points on some rate sheets coming in," McFall said.