Fritz Pfister

There’s light peeking through the trees, however we are not out of the woods yet. It will be up to the people that follow the light to lead us out of the woods. They would be home sellers, buyers, Realtors, appraisers, and lenders.

It appears that June will finish up from June of 2008 heading into the final week of the month. Sales pending are up which should translate into July from July sales being up. If the sales pending close, which is the rub.

There continues to be a good deal of homes that go under contract (sale pending) that never close. The aforementioned home seller, buyer, Realtor, appraiser, and lender are responsible. Inflexible sellers sometimes blow a closing by not agreeing to repair requests. Buyers sometimes blow the closing by making unreasonable repair requests. The Realtor sometimes blows a closing by not properly counseling their client. The appraiser is just doing their job, and the lender has had more rules changes laid upon them by the government than ever.

Here’s what I am referring to; through June 21 there have been 721 more sale pending than sold and closed listings reported to the MLS. Today there are 510 listings pending closing. That means 211 home sellers whose listings went pending never closed, and continue to be for sale, or took the home off the market.

The market is as active as any time this year. Historically it’s supposed to be active this time of year. Considering the current economic environment everyone should be ecstatic about the current level of activity in the local housing market.

What has caused this current burst of sales? Governor Quinn’s heavy handed tactics to get a tax increase? The legislature’s inaction? Consumer confidence? An increasing number of jobs? The unconscionable spending by our government(s)?

In my opinion this is what created the recent burst in sales. Following four months with interest rates on thirty year mortgages holding below 5%, a literal once in a lifetime opportunity, rates increased a full percent in three short weeks. People are people. Many were waiting for the impossible dream; even lower rates. When rates began climbing the people waiting jumped to action.

Most people have the common sense to know interest rates can shoot up faster than the corn out their back door. Especially with the Obama administration and Congress providing the fertilizer (out of control spending).

The 10.1% unemployment rate reported Friday for Illinois was not surprising or unexpected. The state continues to be without a budget and the clock is ticking, making plenty of state employees nervous. The tax increase hammer is making plenty of private sector people nervous. The national debt should make everyone nervous.

Under these conditions, that directly impacts the Springfield housing market, one can only hope the light keeps shining through the trees for anyone to follow.

The opinions expressed are solely those of Fritz Pfister, and not RE/MAX Professionals of Springfield or RE/MAX International.