Fritz Pfister

The numbers are in for July home sales in Springfield Illinois. They sound impressive, however they don’t reveal the whole story. The following data is as reported by member brokers of The Capital Area Association of Realtors MIS.

July over July: New listings down 6% to 453. Closed home sales up 24.25% to 292. Home listings going under contract up 9.38% to 373. Median sale price up 13.16% to $119,950. All sound impressive, right?

July 2010 was the weakest for a July since the 1990’s. Comparing the July sales figures to the five year average for the month; Closed home sales down 17% to 292 from 352. Home listings going under contract down 10% to 373 from 414. Not so impressive.

June represented the first month in fifteen months for a return to normal with home listings going under contract exceeding the previous June by 47.7% but exceeded the five year average by only 4.95%.

I attributed the spike in activity to falling gas prices, pent up demand, and low interest rates. It appears the wind has gone out of the sails of pent up demand, because gas prices were lower along with interest rates in July than in June. Could there be another factor in play?

There were high expectations as the week ending July 2 posted over 100 homes going under contract for only the fifth time in 2011 only to decline to 75 the final week of the month, a four month low. The week ending August 5 continued the slowest pace in four months for homes going under contract with 75. That’s 572 Realtors in all or parts of five counties total sales. This is not a good trend.

Is it coincidental that the slowdown happened at the same time the administration was screaming Chicken Little regarding a national default for the first time in history? Consumer confidence plays a major role in home sales. Did local consumers have their confidence shaken by the Obama administrations scare tactics telling Americans it would be catastrophic to the economy if Obama didn’t get trillions more in borrowed money to spend?

The nation was never at risk of default over a $29 billion debt payment in August, they after all have between $174 and $200 billion in tax receipts expected in August. It was pure political dishonesty to obtain a political goal.

What was at risk was the AAA credit rating of the nation. The rating agencies had been warning the government for months that the nation was on a path to insolvency and if a plan including significant spending cuts putting America back on the path toward sound fiscal policy were not enacted, they would downgrade our credit rating. Tim Geithner repeated numerous times that would not happen if the debt ceiling was raised, as he foisted the default and catastrophe lies relentlessly on national TV.

The most profligate spenders in history got their wish for increased borrowing, the feckless Republicans relented on necessary spending cuts, and catastrophe ensued. The stock market fell 5.4% after the terrible debt limit bill was passed. Working Americans lost over a trillion dollars from their 401k’s, and IRA’s in one week.

The catastrophe proved to be the Obama administration and Republican house not taking the appropriate actions necessary to lower an unsustainable debt. Their actions were followed by Moody’s downgrading their forecast for America to negative, and then Standard and Poor’s downgrading our credit rating below AAA for the first time in history.

Watch out when the markets open on Monday. Where’s our president on the downgrade? This is a time America needs leadership. The disastrous debt limit agreement needs amended to meet the criteria of the rating agencies, a plan put forward with confidence that settles the nerves of investors, and the American people’s confidence.

Nothing but silence from Obama, he’s been off celebrating his birthday with $38,000 a plate fundraiser parties, entertained by stars, while the American people see the continuation of misery through high unemployment, and watch their retirement savings evaporate. Is Obama saying with his actions; let them eat cake?

The falling economic growth, perpetual high unemployment, disastrously low consumer and business confidence has America on course to a double dip recession. The recession never ended for the 14 million out of work. The housing market never was out of recession.

Now we face a real crisis at the hand of Obama policies crushing the private sector with oppressive regulations, massive thousands new page laws, higher taxes, and deficit spending as no other president in history. Our credit rating is down, markets and people are scared, Monday is tomorrow. Where’s the president?

Is there any wonder consumer confidence is at two year lows, and that businesses in America have no confidence in President Obama? The real catastrophe for America today is not only a lack of leadership, but the wrong leadership, on both sides of the aisle.

Will America’s true leaders please step forward before this crowd of incompetents completely collapse our economy and society? Please? America needs you. At least someone with principles, integrity, and a rudimentary understanding of economics?

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

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