No. 2383 contracting the boundaries of the West Washington-Chapin Development Area

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Residential Market Trends • 1. The amount of rental housing is significant in the study -area, and contributes to physical deterioration of the' rousing stock. According to one respondent, almost half of all investment in the area is by speculators. Also, the existence of multifamily zoning has also contributed to physical deterioration of the area's housing stock. 4 2. The rental vacancy rate is quoted by many to be; as low as 3%. 3. Housing values have been stable in the study area. 4. Several realtors state that there are not many homes for sale in the area, and those few that realtors are aware of remain on the market for much longer than homes in other South Bend market areas. A partial explanation of the realtors perception of lack of homes for sale is that many are privately transferred and do not appear in the multiple listing service. 5. Many of the homes that appear on a listing service are architecturally appealing and are located within the Historic District. These homes are often sold to homebuyers who are willing to invest in rehabilitation. The number of these homebuyers is limited. Since few substantially rehabilitated historic homes have been resold, the demand for these homes and the potential resale prices have not been determined. Most families (or couples) who are interested in purchasing large, older homes with character, and who have the financial resources to do so buy homes across the river in the East Jefferson area where the purchase of a home is perceived as a good investment. 6. Financing for many smaller homes on the Near Westside is provided by FHA or VA loans. 7. The Near Westside is perceived by some realtors as an excellent starter home area, especially for young black couples. There, they can get the most home for their money. Other higher priced starter home areas include (in order of the amount of investment required, low to high): a: Miami Street area (south). b. Fellows and Rush area (southeast). c: River Park (off of Mishawaka). d. Clay Township (Granger, Arlington Heights, Swanson, Georgetown communities). e. Scottsdale area. Some minority families are discouraged from seeking homes to purchase. Their perception is that financing is not available to them. Many people who might buy a home in the area actually rent there now. Related to this, while apartments are currently on the market throughout the city, it is difficult to find a vacant home for rent. • 7