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by Ruthie
Hutchings
September, '96
Jay and Betty Haskin and their seven children moved from Phoenix to Fairfield when an executive search company convinced Telegroup that Jay was just the communications expert they were looking for. Jay now heads up Telegroup's Intelligence Networks Support Section.
The Haskins rented in the less expensive town of Douds while they looked for the right house in Fairfield. It took two years, but now they're happy in a country home on six acres of land.
Since moving to Fairfield, Jay and his family feel supported in two strong commitments: homeschooling and membership in the Mormon church. And they love the green rolling hills after the scorching heat of Arizona.
The influx of professional experts like Jay Haskin is one factor stirring up action in Fairfield's real estate market. Just how active the market is depends on which agent you ask. Descriptions range from "very good," to "brisk," to "not brisk, but lively," to "our best year yet."
Regardless of their differences, all of the realtors polled agreed the current real estate market is healthy. The sheer number of Fairfield agencies and realtors encourages this impression--12 agencies with 90 realtors, as compared to 6 agencies and 30 realtors in Mt. Pleasant, a town of similar size and economic development.
Of course, a lot of new listings and a lot of showings could make the market seem lively to booked-up realtors. But statistics support the idea that we're in a healthy real estate market.
For one thing, houses are moving faster this year. Ed Parsons of Good Earth Realty says that during the week ending July 13, for example, the housing market added nine new listings; the same week two houses closed, and eight sold subject to financing.
Multiple Listing Service reports
compiled by Lefty's Realty show that, even though the total number of
houses sold in the first half of 1996 was not much higher than the
number sold in the first half of 1995, the gross sales figure was up
25 percent--from $3.4 million to $4.2 million. And the average sale
went up 22 percent in the same time period.
The average sale in the $100,000-plus group climbed from $115,000 in the first half of 1995 to $135,000 the first half of 1996. The average sale rose in the group priced below $100,000, from $55,000 to $63,000.
The inevitable question is, since inflation is negligible at around 4 percent, did this 22 percent rise in average sales come from sellers hiking up prices on their houses?
The evidence suggests no--that the rise comes from people buying bigger and better houses, on better lots and locations.
MLS figures show that a large portion of the increase in the average sale price came from sales almost doubling in the $100,000-plus price range--from seven houses sold in this range in the first half of 1995, to thirteen sold the first half of 1996.
In addition, realtors say that prices for commensurate houses have remained about the same over the last couple of years.
Buyers can also be encouraged by news from the county assessor's office: 1996 has reversed a several-year trend during which houses sold above their assessed values. This year, just as many houses have sold for less than their assessed value as have sold for more than their assessed value.
This spells a healthy market, and profitable for all involved, including the buyers, who get more house for their money, the average seller, who may sell more quickly in a lively market, and the realtor, who earns a higher profit.
While the market is healthy, it's still true that Fairfield prices are considered to be high compared to other towns of similar size. In fact, they are as high as prices in many cities and suburbs around the country.
Sally Hayes of Century 21 says she's used to newcomers going into what she calls "sticker shock" when they look through the listings. Like the gaping you'd do if you browsed through prices in a Lexus lot.
Tim Opar, who came here a couple of years ago to serve as Dexter's foundry vice president, says he found real estate prices here "as high or higher" than in Milwaukee. Doug Neish, recruited from Canada to be Telegroup's vice president of corporate finance, says he was amazed to find prices as high as in the Ottuwa suburbs.
The fact is, Fairfield's stability, variety, and charm appeal to so many types of people that the market can sustain somewhat higher prices than other small towns.
"But don't forget," says Mrs. Pasch of Lefty's Realty, "buyers are more educated these days. They know what to look for, and they're ready to negotiate." And, according to the information cited from the county assessor's office, they're increasingly negotiating prices down to the assessed value of the house, or even below.
Prices have remained fairly stable this year. As Herb Justmann of Exec Realty says, "Fairfield's high number of listings keeps prices in a consistent range."
On the other hand, Ann Clifford of Heartland Realty points out, "Local businesses are still expanding and recruiting professionals to Fairfield. If the number of buyers continues to increase, prices could begin to rise slightly in the fall."
Most realtors agree that the current upswing in buying and selling comes from the expansion of local businesses. Business growth invigorates the real estate market by raising the rate of local employment, by paying higher salaries than many smaller businesses, and by recruiting professionals and their families from other communities.
Here is a sampling of Fairfield's business expansion:
Most of these employees are Fairfield residents; about 5-10 percent are recruited specialists.
"A healthy real estate market depends on stability," says Jim Horace of Fairfield Real Estate. Rockwell, Inc., and Harper Brush hold up their corners of the foundation.
Rockwell undoubtedly adds to the solidity of Fairfield's economy with its tenure of 30 years and 450 employees. Though the employee count at Harper Brush has not expanded much in 97 years, their sales have risen markedly in the last two years, with 1996 expected to top 1995 by at least 15 percent.
Business growth and stability raise community confidence so that people are willing to risk investing in a home. But it's more than a feeling. Most local mortgage companies require at least a year and a half job tenure to qualify.
With 150-200 houses on the market most weeks, you might think the number of people who can't find a house in Fairfield would fit into a hall closet. But, paradoxically, many realtors, buyers, and city officials see housing shortages.
Professionals who have moved to Fairfield say they didn't find enough houses in the "prime" category. For those who don't know it from any other cut, prime real estate, as described by Sally Hayes of Century 21, is a relatively new home in the $80,000-$120,000 price range, with three bedrooms, two baths, a two-car garage, and a large kitchen.
Penny Farrow of Heartland Realty agrees that Fairfield needs more new and refurbished houses. "I have a long list of interested buyers, and a long list of houses, but it's hard to match them up," says Ms. Farrow.
Realtors also point out a shortage of entry-level homes, which are smaller, less-expensive houses for middle class or young families. In addition, all types of rental units are needed, including apartments, duplexes, condominiums, and rental homes.
In fact, a study commissioned this year by the City of Fairfield determined the housing needs for the next two years. A community-research firm out of Lincoln, Nebraska, statistically established the need for over 400 owner and rental housing units at all income levels by 1998.
This figure comes as no surprise to Dick Smith, president of Agri-Industrial Plastics, who says less than 25 percent of his employees live in Fairfield, he believes due to the lack of affordable housing. Even though the market bulges with available houses, many of them are older and need extensive repairs. And, making it even harder for entry-level buyers, lenders like FHA increasingly want repairs done on fixer-uppers by buyers before they will make a loan.
Obviously, Fairfield needs housing development. The city took the first step by commissioning the housing study. With this substantial research, Fairfield hopes to attract developers and grants.
The development arm of the city, Fairfield Economic Development Association, has moved to help the neediest group--the elderly--with a proposal to develop the block south of the old library into subsidized retirement apartments. Mike Brouwer, secretary of FEDA, points out that these apartments could ease the housing shortage by freeing 40 or more homes.
So who's taking the second step in housing development? So far, nobody.
John Brown, Fairfield's administrative coordinator, says that while there is considerable commercial building going on, house building has slowed. For example, just three permits to build houses were issued between May and August.
The city's hands are tied for now because of its tax-increment financing of the 63-lot Park Place development. Through this program, the city was able to pay for the development's water, power, and streets, to be repaid through the home-owners' taxes. Until these taxes have paid off a major portion of the city's investment, it won't have funds for supporting another large development.
This puts the challenge right into the private
sector. With Fairfield's proven entrepreneurial creativity, surely
some civic- and profit-minded individuals will grasp the opportunity
to work with the city to develop rental and owner housing for all
income levels.
Jay Haskin said it wasn't really the money that brought him to Fairfield; it was the lifestyle--the low crime rate, the friendliness of the people, the simple beauty of the land. Long-time residents already know. Now developers need to see the vision.
