Fritz Pfister

There were some encouraging signs from within the local housing market, and some flat out good news this past week. My view of the condition of the local housing market has improved from hopeful, to cautiously optimistic.

Two encouraging signs this week were the continued decline in the number of homes listed for sale, and home listings going under contract exceeding 100 for the second time this year. The 1686 homes listed for sale today stand 4.8% below last year on this date by 86 fewer listings. Although the second highest number of homes for sale on record for this date, the trend is heading in the right direction; down.

The 102 home listings going under contract this past week was the second highest this year and was only the second time the 100 sale mark has been surpassed in any week since August of 2008. The 471 sales pending today stand only 45 behind last year on this date, off only by 8.7%. Although the fewest sold pending for this date since 2000, this trend is heading in the right direction; up.

Have we hit bottom and are now bouncing back to more normal levels of sales activity? Check back here in a couple of months and we’ll know. I predicted the best opportunity this year to sell a home would be March through May and probably into June before sales begin to level off and begin the ususual seasonal decline.

Local lenders tell me the forecast for these record low interest rates is rates will remain near the current levels through the summer and into the fall. Two points, I hope they’re right, and I hope that spurs demand.

The flat out good news this week was that the private mortgage insurance companies removed Sangamon and Menard counties from declining market status. This will help more home buyers become eligible as the credit score requirement for those wanting a conventional loan, with less than 20% down, is lowered. Don’t worry, this is not a return to the old days of; if you can fog a mirror you qualify for a loan.

The rebound of the median sale price in February and March convinced these PMI companies we are no longer declining. Year to date through April 17 the median sale price is up 10.3% or by $10,000 from 2008. I urge home sellers not to misinterpret this jump in the median sale price as prices are rising. The biggest mistake a home seller could make in this market is overpricing their home.

Here’s my reason for urging caution on how to read the increase in median sales price. Although the median price is up, and that is great news, it is up on fewer sales. Year to date closed home sales are down by 57, or by 6.9% from 2008, and the fewest on this date since 2000. In 2008 the median price was also up year over year in the first quarter, then declined the remainder of the year. It’s too early to tell if the current trend in rising median sale price will hold up, or for how long.

Should interest rates hold near record lows through the summer that will support prices. When interest rates go down, prices go up. With the weakest demand since 2000 and the second highest inventory on record, record low interest rates are the reason for the rebounding median sale price. It’s too early to read too much into the rising median sale price, but believe me we will take it!

Now if someone would get in touch with mother nature and get us a stretch of good sunny weather, not only could the farmers get going into the fields so we can see those corn plants popping out of the ground, good weather in the spring usually has home buyers popping out of the woodwork!

Make this a great week from Fritz and Kristie Pfister and The Pfister Success Team of RE/MAX Professionals Springfield. Are you thinking of selling your home or know someone who is? We would appreciate a recommendation, our 17 closed or pending home listings this year has our current inventory of homes listed for sale at a record low for this time of year. We are looking for a few good people to serve. Call 652-7653. Thank you.

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