Wednesday, January 4, 2012

Hardin County Update




    As 2012 rolls around, I find myself pondering what the New Year will hold for the Real Estate industry in the Hardin County area. 2011 was a tough year when compared to 2010, but is it as bad as everyone says?

    Most of us tend to have short memories. We remember what has happened in the past 6 months to a year, but not the previous 5 years. 2010s performance should be taken with a grain of salt. We seen a large influx of new families due to BRAC, and things were looking good. However, 2011s median sales prices for the county are slightly higher than 2007-2009. Over the past 5 years we have not seen wide-spread depreciation in our county, although there have been several isolated subdivisions that have seen some depreciation. The overall trend for the past 5 years has seen slight appreciation of approximately 1% according to HKAR MLS.

    Most people are concerned about their decreasing stock portfolios and depreciating Real Estate; they look to the news for signs that could indicate the market is going to go down. According to the Appraisal Institute, federal involvement is expected to increase this year in the mortgage industry, which causes concern among experts (1). Also, forecasts of banks foreseeing difficulty in maintaining revenue is a concern according to an article published by HousingWire (2).

    But enough of the bad news, there are several experts that are looking forward to 2012. An article from Kiplinger's Personal Finance believes that the market has bottomed out, and it will begin to recover this year (3), and pending home sales are on the rise according to the National Association of Realtors (4). We have also seen 3800 troops return from defending our freedom overseas, and there are several road expansion projects in the works to accommodate the increase of traffic in the area.

    In closing, Hardin County is a stable market. While we may have gotten spoiled on the appreciation we were seeing before 2007 and the increases of 2010, our market is still very stable. Hopefully the experts are correct on the condition of the market for 2012.

1. http://www.appraisalinstitute.org/ano/newsletter/DisplayNwsLtrArticle.aspx?volume=1&numbr=1/2&id=16669

2. http://www.appraisalinstitute.org/ano/newsletter/DisplayNwsLtrArticle.aspx?volume=1&numbr=1/2&id=16657

3. http://www.appraisalinstitute.org/ano/newsletter/DisplayNwsLtrArticle.aspx?volume=1&numbr=1/2&id=16651

4. http://www.appraisalinstitute.org/ano/newsletter/DisplayNwsLtrArticle.aspx?volume=1&numbr=1/2&id=16648

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