Here is a glimpse into the current market of Tyler, Texas.
I have considered relevant competitive listings and/or contract offerings in the performance of this appraisal and in the trending information reported in this section. If a trend is indicated, I have attached an addendum providing relevant competitive listing/contract offering data. While other markets in the United States have seen substantial decreases in values over the recent months, the Tyler/Smith County area has not been significantly effected since the values in our area were not overinflated. Also, the rate of foreclosure in our area is lower than in other states. New homes are still being constructed in all price ranges throughout the county. While some of the higher price range homes have seen a longer marketing time, the lower to medium price range homes have been active. There were 3078 homes sold last year compared with 3589 for 2007 which is about a 16% decrease which compares to statewide numbers. While the number of sales decreased, the average sales price of the homes increased 5.9% to $158,940. According to Jim Gaines, an economist with Texas A & M regarding the declining numbers of sales, "Our declines have been magnified because we're measuring them against record numbers,". According to the Tyler Morning News in an article published 01/19/2009, Smith County had 358 foreclosure filings in 2008 compared to 144 in 2007. These numbers are in line with statewide numbers but are well below nationwide numbers. Many of those foreclosures are out of state investors who purchased multiple investment properties. AIG United Guaranty just added Smith County to its declining markets list; however, Fannie Mae and Freddie Mac consider a declining market to be declining values. AIG uses home prices, local economy, population stability, and mortgage delinquency rates. While AIG belives, Smith County is Moderatley Declining Market by .06 percent, Smith County does not have declining values and is not a declining market per Fannie Mae/Freedie Mac.