Consumer Confidence, Existing Home Sales, Home Values

Patience Needed To Sell Luxury Homes In Valparaiso Indiana

December 17, 2010 by · 3 Comments 

Valpo Luxury Home For Sale presented by Steve CardwellGreater Valparaiso Indiana has a widely diverse selection of homes and population demographics. So when President Obama quipped last week how Republicans were “holding the middle class hostage” in favor of the wealthy, a lot of local area homeowners took notice. Class warfare is the unmentionable subject that politicians are never supposed to say in polite company.

But since he brought it up, let’s take a quick look at the real estate market in 46385. These are the collar communities that make up the outskirts of Valparaiso surrounding downtown. And although they are diverse, they do have some of the highest concentration of luxury homes in Northwest Indiana. Since we know from the media all about the struggling middle class homeowners let’s examine how the luxury real estate market is doing these days, and see how the “hostage-takers” of the luxury home market class are actually doing in our small microcosm of the US.

Luxury Market Snapshot

Across the entire 46385 zip code, the median market price peaked here at $300,000 in January of 2008. But after a good rebound earlier in the year, prices have fallen throughout the summer & fall to a new low 20% down below the peak, with a median price of just $239,584, or an average loss of about $40,000.

Looking at the upper bracket, luxury homes are harder to sell. The pool of buyers is smaller. Government mortgages such as FHA have caps so cash and conventional loans are about the only choices. Jumbo loans were very difficult to obtain during the crisis peak. And an acceptable determination on the home’s appraisal can be difficult if there are no similar homes nearby to compare features and size.

This chart shows how Days-On-Market for the top 25% price segment (homes with a median price of $500,000) stalled out at the end of 2009 and is still 3 times longer than in the golden days of 2007.  Meaning that at the worst point it took an average  of 14 months to sell; currently it’s about 10 months. Lower priced homes sell in the 6 month range.  Note that when properties expire from the market and then are re-listed under new MLS numbers, the clock resets, which can skew the reported data much shorter than the true time span. A close look at some of these individual homes revealed repeated sales attempts, sometimes for for 3 and 4 years in duration.

Depending on how you feel about the plight of luxury homeowners, they do have their unique problems and concerns. A wait of 2 years or more to sell a property may make you wonder who is really the hostage.

Around Valparaiso

Fortunately, Valparaiso Indiana has lots of options for folks with more mainstream or modestly upscale incomes, who might be looking for more conventional single family and townhome communities:

  • Salt Creek Commons and South Haven to the West
  • Cooks Corner, Aberdeen, and Heritage Valley to the South
  • Keystone Commons & Wild Rose to the North
  • And many country homes on 1-5 acres spread across the county, such as Jackson and Liberty Townships for people looking for nature and open space.

Whether your dream home is modest or grand, let me custom-tailor a list of properties that match your description, and we can take the  concierge guided tour.

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Steve Cardwell

Steve Cardwell is an Indiana Realtor working with residential buyers and sellers throughout Northwest Indiana. He likes to stay current on the housing market by analyzing real estate trends with a focus on the towns of Highland and Munster Indiana. His broker affiliation is Red Key Realty Leaders in St John, Indiana. Learn more about Steve and visit www.SteveCardwell.com.

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Comments

3 Responses to “Patience Needed To Sell Luxury Homes In Valparaiso Indiana”
  1. Luxury homes in any real estate market definitely have their own issues when coming to finance option especially during the credit crisis. As the days on market have climbed for luxury homes in Valparaiso Indiana, the burden of home value relative to the new appraisal guidelines have also created unimaginable hurdles that often times can not be cleared. Time will only tell if the luxury home real estate market remains just that in Valparaiso Indiana.

  2. Jim Sims says:

    Great information Steve! Many people don’t take into consideration that the price cuts and reduced price for what they buy some of these luxury homes are so the seller can move on after the time it has been on the market.

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