Fort Wayne Home Sales Suffer with GM Plant

The uncertainty over General Motors' future in Indiana is causing more uncertainty in the housing market for Fort Wayne, Ind.

The northeastern Indiana region is home to GM's Fort Wayne Assembly Plant, which employs 2,601. The plant will be idle for 2 months this summer and was already idle for 4 month this winter.

"We worry about it closing," says Rena Black, president of the Fort Wayne Area Association of Realtors. "If it does, it would be devastating for Fort Wayne." Just the thought of closing has affected home sales in the area.

Prior, Fort Wayne had been fortunate in the current economy. "We never experienced the kind of boom and bust that large cities in some states experienced," Black says.

The current decline in home sales is partly related to a slowdown in migration to Fort Wayne. And those who are moving there for a job may not be able to buy a home until they can sell their last home.

Recently, there has been an increase in first-time home buyers. They are taking advantage of low-priced properties that are in foreclosure but are in good condition.

"We're a somewhat urban city, and everything around us is rural," Black says of Fort Wayne's appeal. "But it's a very pleasant way of living. The pace is slow. And we have virtually no traffic jams."

Fort Wayne also has a friendly economic environment. Because taxes are lower than in Michigan, businesses were relocating there until the economic crisis hit. "When the recession is over, Fort Wayne could be a lot more positive."

The most expensive Al and Michele McGee are selling a home that sits on 20 acres, high above the Cedar Creek river Price: $1.9 million Bedrooms: 5 Bathrooms: 6 full, 4 half-baths Size: 13,089 square feet Features: Ballroom, state-of-the-art exercise room, spa, billiard room, game room, lounge/ dance area, five fireplaces, two vaults, trophy room, guest house, 2-acre stocked pond, horse barn with paddock Median-price home This home, built in 1935, is on the market. Price: $89,500 Bedrooms: 3 Bathrooms: 2 full baths Size: 1,202 square feet Features: New siding, new kitchen and flooring, new windows and doors, a second onebedroom home on the property for rental or office

-USA Today