Fritz Pfister

Whether you are trying to sell your home, or are looking for a lower house payment, the sharp drop in interest rates represents an early Christmas present. The thirty year mortgage rates locally have held consistently below five percent for over two weeks. The dark cloud of the national economy’s financial crisis does indeed bear a silver lining.

Let’s not forget the silver lining, and early Christmas present of the significantly lower gas prices. If food prices would follow suit, consumer confidence would slowly rebuild.

Regrettably there remains some dark clouds from the shock of the financial crisis announced in September. Home sales in Illinois were down 33.9% in November over November 2007. The Springfield market experienced the sharpest percentage decline for month over month on record in November with sales falling 35.7%. Unheard of in these parts!

Year to date January through November 2008 home sales were down statewide by 24.1% Springfield once again proves to be performing better than the state and nation with year to date sales down by 13.2% (through December 23, 2008).

Falling gas prices, historically low interest rates, and the hopefully imminent change of leadership in the governorship of Illinois bode well for 2009. If food prices would moderate then consumer confidence would shoot upward.

Many factors will impact the economy in 2009, with too many remaining unknown, for the experts to say whether the bottom may be reached in the housing market in 2009. My best estimate is that the bottom will be reached, and a rebound in home sales will take place in 2009. Jobs will be the key to the strength of any rebound.

Regardless the interest rates are a flashback to the 1960’s, home prices are stable in Springfield, to down across Illinois, and there remains a record number of homes for sale. This set of market conditions are a Christmas gift to any home buyer in a position to purchase. Record low interest rates, home prices at decade lows, and an abundant inventory of homes for sale.

Merry Christmas to all, and here’s looking forward to a great new year in 2009!