For several years, people in Kokomo and Howard County have been hesitant about purchasing or building a home. Foreclosures flooded the market as the recession hit hard, and the real estate market collapsed.

That’s old news. The Indiana Association of Realtors recently announced that the local housing market is on the mend. In fact, housing prices are up about 16 percent from a year ago. The median price of a home sold in February was $65,500.

The news was welcomed by Kokomo Mayor Greg Goodnight.

“The home sales gain is positive news for home sellers and buyers who are in the market during a period of historically low interest rates,” said Goodnight. “The recent census data identifying Kokomo and Howard County as gaining 119 new residents, business expansions, and this real estate market report are evidence of a growing local economy.”

According to Amy Pate, executive vice president of the Realtors Association of Central Indiana, there are a number of reasons why this recovery is taking place, but the top reason is also the most obvious one — jobs.

“Overall, the increase in meaningful jobs in our community has more to do with it than anything else,” said Pate. “That, paired with the fact that there is a decrease in inventory and the number of foreclosures are going down, means it is a little less of a buyer’s market than it has been.”

Pate explained that there are certain home price ranges or niches that are so lean on inventory that offers are being made just days after a home hits the market. For sellers in that range, the recovery is paying off immediately. However, it will take time, she said, before appraisals reflect the full impact of the recovery.

In other words, prices are bound to go higher. But even with the increase, Kokomo is a still a bargain.

“In Kokomo, the price increase is relative,” said Pate. “Compared to the rest of the U.S., we’re still an extremely affordable area. Interest rates are still excellent, so the key is what your financial condition is, coming out of the last few years.”