Fritz Pfister

The housing market in Springfield Illinois is known nationally as one of the most stable in the United States. Home of the state capitol, and with a primarily white collar employment base, significant swings are seldom experienced.

Following four consecutive years of exceeding four thousand closed home sales annually, The Capital Area Association of Realtors member brokers report a significant swing. If Springfield Illinois is a benchmark for stability, this doesn’t bode well for the state or nation. The national economy, the stock market plunge eroding 401k’s, and bail out mania at the federal level is dampening consumer confidence in this historically stable market.

Preliminary sales figures reported for November 2008 show a drop of 113 home sales closed, down by a whopping 35.7%. Sales pending were down by 95, or by 30.9% which isn’t good news for December or January closings.

An oddity in home sales trends appeared during the second half of 2008. Sales pending contracts have declined every month in 2008. Following a 14% drop (-62) in sales pending in August, closed home sales were reported up by 2.9% (+9 sales) in September. September sales pending fell 15% (-54) but October closed sales were up .7% (+2). Then October sales pending fell another 15.5% (-50).

The question of this oddity, home listings going under contract falling by double digits while closed listings the following month increasing, didn’t make any sense. Reality stepped in, and the correction arrived in November with the largest year over year monthly decline in closed sales (-113/-35.7%). The 30.9% (-95) drop in sales pending have the Springfield housing market slowing to a crawl.

This is bad news for home builders, and home sellers that must sell. In addition to fewer buyers in the market, these home sellers continue to contend with record levels of inventory for sale.

The flip side of this coin is that this is great news for home buyers. With the Fed combating the slowing national economy by lowering interest rates, the bond market has finally responded, and 30 year mortgage rates are at lows seen only once since the 1960’s. The 30 year rates have ranged between 5.125% and 5.5% the past two weeks.

Record inventory of homes for sale for this time of year, incredibly cheap interest rates, and the smallest demand for homes in seven years all add up to be a great time to buy a home.

The challenge for home sellers in the Springfield Illinois housing market to get sold is the greatest since the high interest rate years of the late 1970’s and early 1980’s. If you or someone you know must sell a home during these extremely difficult market conditions, call 217-652-7653 to register for the free Home Sellers Seminar.

There will be two seminars for home sellers. The first will be January 15, 2009; the second February 12, 2009. The seminar runs from 6:00pm to 9:00pm at The Capital Area Association of Realtors office building on Robbins Rd. Hosted by Fritz Pfister of RE/MAX Professionals. Reservations are required. Seating is limited to the first 50 registrants.

Fritz Pfister is a licensed real estate broker with over 21 years service as a full time Realtor.

What a week. The national economy continues to dominate the headlines, unemployment rising to 6.7% in November as the Big 3 auto manufacturers were in D.C. again pleading for loans in order to survive. Locally the home sales reporting deadline for November passed yesterday. That report will raise some eyebrows.
This business of trying to [...]