Fritz Pfister

The Capital Area Association of Realtors (CAAR) member brokers reported first half of 2007 that 2056 homes were sold in the MLS. Although this was a decrease from the 2177 homes sold the first half of 2006, it placed the MLS even with 2005 that went on to a record year.

This was only the second time in 15 years that first half sales fell behind a previous years sales, and only the third time the second quarter dipped below the previous year in 12 years. The first half was off by 5.5%, and the second quarter off by 4.1%. June ended down by 1.9% (9 home sales). The good news is each time the second quarter took a dip, the third quarter rebounded by beating the previous year. With the number of sales pending up over last year at this time, that could be the story again this year.

On the strength of the first quarter the median sale price rose to $102,000, a $3000 increase over 2006. The second quarter held even with 2006 at $107,000, while June was down $2000 from June of 2006 to a median price of $113,000. This indicates prices have leveled off as the year has progressed while the record inventory of homes for sale competes for buyers. There were about 3 home sellers for every buyer the first half of 2007.

The challenge for home sellers continues to be the competition. With 1806 homes listed for sale, and the MLS adding on average 1750 new listings in the third quarter, there will be nearly 3600 home sellers seeking to get sold. The all time record number of home sales in a third quarter was set in 2005 when the MLS closed 1198. That indicates the advantage in the market continues to be with the buyers.

New home construction sales in the MLS fell by 12.3% to 162, less than half of the rate of decrease reported from across the country. The MLS entered the second half of 2007 with 153 new homes listed for sale, about a 5.5 month inventory.

All things considered, the first half of 2007 saw another steady performance by local Realtors, who are on pace to sell over 4000 homes for only the fourth time in history. The number of sales are down, but only modestly. The median sale price although up slightly the first half, has leveled off at mid-year. The inventory of homes for sale continues at record levels. Interest rates gave home owners a scare a few weeks ago, however fell back to levels from earlier in the year.

Once again the real estate market in Springfield and the surrounding areas proves steady, and resilient, outperforming the national, and state markets.