Fritz Pfister

Following a record setting January 2007, the brokers reporting to the Capital Area Association of Realtors (CAAR) MLS indicated a slowdown in sales in February. The slowdown was caused in part by severe winter weather keeping potential buyers away from the market. The fundamentals for a strong housing market in 2007 remain in place; low interest rates, low unemployment, and availability of abundant mortgage money.

Year to year comparison for February; local brokers reported 225 closed home sales, down 36 or 13.7% from 2006. The median sale price increased $2100 or 2.4% to $87,000 in 2007. Home sales pending during the month fell by 32 or 8.8% to 330 from the 362 in 2006.

During 2006 the CAAR MLS reported the largest number of listings for sale in recorded history, as well as a record number of unsold home listings. Good news for local home sellers continued in February as the rate new listings were coming to the market fell for the fifth consecutive month. The inventory of homes for sale stands 6% below one year ago with 1512 homes listed for sale.

The inventory still has a way to go before returning to more normal levels of homes for sale. The five year average for this time of year is 1292. Although trending in a lower direction, the number of homes listed for sale is 220 listings, or 17% above average. There remains plenty of choices for buyers, and plenty of competition for sellers. Today the market continues to favor buyers.

More good news for home sellers is that area Realtors posted 119 sales pending the week of February 24th through March 2nd. The best sales week for Realtors since the first week in July 2006. This supports my prediction that the winter weather has created pent up demand heading into the spring market, which historically sees more home sales than any other season of the year.

The current market trends should alert potential home buyers that their window of opportunity is beginning to close. When the number of homes for sale returns to the norm, there will be fewer choices, prices will increase, and sellers will be less negotiable.

Reported sales totals for January and February combined; 460 closed home sales down by 8, or 1.7% from 2006. Sales pending 677, down by 37, or 5.1%. The median sale price up by $3500, or 4% to $90,250 compared to $86,750 in 2006. The 861 new listings are down by 129, or 13% from the 990 reported in 2006.

The falling inventory, stable sales, and rising prices are trends home sellers hope continue into the spring. There is no evidence in the market to predict otherwise. Buyers that have delayed purchasing a home hoping for lower prices may be disappointed if they postpone their buying decision too much longer. The Springfield Illinois housing market is trending towards a level market.

Prospective home buyers should remember what my grandfather said; if you wait for all the lights to turn green to go to town, you’ll never get there.