Fritz Pfister

What a difference a week makes. The home seller seminar originally scheduled for January 15 due to wind chill factors exceeding 25 below zero was rescheduled for this past Thursday, and low and behold it was fifty degrees. What hasn’t changed is the difficult market conditions for getting a home sold.

Last night The Greater Springfield Chamber of Commerce held their annual dinner. CEO Gary Plummer said the goal has not changed for the Q5 initiative to create or retain 4500 jobs by 2012. The Chamber is working cooperatively with the city of Springfield seeking approval of a multi year program for public works for infrastructure improvements, will be contacting 1200 companies nationwide marketing the city, promoting for a large scale east side development, for funding new education and training programs, and wants to raise $500,000 for training of additional nurses in the Springfield area, according to reports in today’s SJR.

Incoming 2009 Chamber president Mike Houston, president of Town and Country Bank isn’t downplaying the challenges in the coming year. However Houston remains steadfast in the Chamber’s efforts to create 600 new jobs in 2009, while retaining the jobs we have.

In my opinion the Chamber’s goals are lofty and admirable, and I certainly will do my part in helping to achieve these goals. The reality is the city is broke, and has postponed a budget vote which includes the department of public works making massive cuts. How in reality can we embark on an infrastructure program when the city can’t even afford to maintain our aging infrastructure?

This is all very important to the local housing market. That is why The Capital Area Association of Realtors has stepped up to the plate and pledged one hundred twenty five thousand dollars for Q5. Jobs are the key to any rebound in the local housing market. Without jobs expansion the local housing market will be reduced to local home sellers and buyers simply trading spaces.

During the seminar the state of the local housing market was discussed so that those prospective home sellers could make informed decisions. Heading into 2009 the fourth quarter of 2008 saw a significant slowdown in the number of homes sold, and a decrease of 6.8% in the median sale price, while the supply of homes for sale continued to run at record high levels.

I shared with these folks that things are never as good as they appear, nor are they ever as bad as they appear. With 2008 ending with 16 consecutive months for sales pending to decline year over year, there is pent up demand building. When the jobs ship gets righted this market will take off.

What if the job market does not right itself in 2009? What can a home seller do to get sold? The forecast is for 3100 home sales in 2009 from an estimated 7100 plus home listings. The odds are not favorable for the majority of home sellers this year to get sold.

However the silver lining is there may be no better time to make a move up than under the current market conditions. With prices forecast to fall in 2009 you won’t be able to sell your home for what you could have during the boom, however you’re not going to have to pay boom prices on your next home either! The best time to buy up is in a down market.

Here’s an example. Say you could have sold your home for $150,000 in the boom, but today for only $135,000, ten percent less or for $15,000 less. The $250,000 home in the boom market, you have always admired, at ten percent less will now sell for $225,000, a $25,000 difference. This means a $10,000 net gain for you, and the icing on the cake is; interest rates. You’ll not only save on the purchase price of your move up home, you’ll be able to finance at better rates than during the boom, saving tens of thousands more on interest payments! In other words when the market rebounds, and it always does, you will realize a substantial financial gain.

The key to making a successful move up during a down market is getting your current home sold. Without the influx of additional buyers generated through job creation, selling will be a challenge. If forecasts are accurate that 3100 homes will sell, why can’t you be one of the 3100? You can if you hire the right real estate agent and company.

You also can improve your chances of success through education. Attend the next free home seller seminar Thursday February 19 from 6pm to 9pm. The home selling process will be covered step by step from the actions you should take prior to listing your home, to the showing of your home, the marketing, the offer negotiations through the closing. Call 217-652-7653 to reserve your seat.

Make this a Great week from Fritz and Kristie Pfister and The Pfister Success Team Inc. of RE/MAX Professionals of Springfield. It would be an honor to serve you. In fact we are in need of home listings to market, our systems have worked so effectively that while the supply of homes for sale is at record highs, our inventory is at a two year low. We have the time, we have the team, we have the systems that can help you get your home sold. Call 652-7653.

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