BLOOMINGTON - Far fewer people bought new homes in Bloomington-Normal in 2006. Twin City new home sales dipped 14.2 percent from 2005, contributing to a decline in overall home sales in the community, according to a report by the Bloomington-Normal Association of Realtors.

Total new home sales for 2006 were 483 new homes, down from 563 the year before. Sales of existing homes were up 2.7 percent from 2005, but it wasn't enough to close the gap in total sales.

Total home sales in 2006 totaled 2,918, 15 less than 2005 - although still enough for the year to rank second best in total sales since 1995.

And the number of existing homes sold in 2006 - 2,435 - was a record for Bloomington-Normal, said Michael McGaughan, executive officer of the association.

The local housing market is doing great compared to the rest of the nation, added association president Marvin Sandel.

Nationwide, existing home sales decreased 8.4 percent in 2006, and new home sales are expected to decrease 17 percent, according to the National Association of Realtors. Existing home sales placed third, behind 2005 and 2004, since the national association began tracking homes sales in 1968.

In December, Sandel had still hoped to break the record for houses sold in one year in Bloomington-Normal, but he said the year did not turn out as bad as many experts across the nation predicted for 2006.

"It's a wonderful year to just miss our record year," Sandel said.

New construction was down for the year because of building costs earlier in the year, he said. But overall the local market is stable because of a good economy and good schools.

"Because we don't have the high highs, we don't have the low lows," Sandel said.

The average cost for a new home in December was $313,328, the second highest amount since January. The average cost for the year was $274,028, a 10.9 percent increase from 2005.

The average cost for existing homes in 2006 was $146,924, or a 0.1 percent decrease from the past year.

The average cost for all homes sold during 2006 increased 1 percent from 2005, to $167,963.

Also in December, 34 houses built before 1940 were sold for an average cost of $83,262.

House sales

Home sales in the Twin Cities (new and used combined) dipped in 2006 from the previous year. Chart below shows sales for the past 12 years.

1995 - 2,319

1996 - 2,144

1997 - 2,224

1998 - 2,769

1999 - 2,749

2000 - 2,354

2001 - 2,856

2002 - 2,810

2003 - 2,868

2004 - 2,827

2005 - 2,933

2006 - 2,918

SOURCE: The Bloomington-Normal Association of Realtors