Springfield Illinois Real Estate Sales 2006
Real estate sales have been in the news nationally all year as a skeptical press looks for bursting bubbles and slowdowns in sales across the nation. Read this report to discover what activity has taken place in this mid-size Midwestern market, and I believe you will see many similarities to most markets across the country. The source of data for this article is The Capital Area Association of Realtors Multiple Information Service from 1-1-06 through 6-21-06. Previously known as the Multiple Listing Service (MLS).
Please consider several factors while analyzing this report. The MLS does not include all market activity specifically for sale by owner (fsbo), and direct builder sales. Nationally three years ago it was estimated that a record 24% of sales were fsbo and builder sales. That number dropped to 12% last year with the supply of homes for sale increasing to record numbers. With that in mind, it is assumed that the MLS represents about 85% to 90% of all sales in 2006. The local MLS set records for 8 consecutive years in the number of homes sold 1998 through 2005. Nobody predicted another record setting year in 2006, except this broker now in my 20th year of service as a full time Realtor.
First let's look at the inventory of homes for sale. Three thousand two hundred fifty nine new residential listings taken year to date, up 198 (+6%) over last year. The year began with 223 (+19%) more listings in 2006 than 2005. This increase in the inventory has caused more listings to fail to sell, however the good news is that the first half of 2006 will finish as the best on record for the number of home sold in a first half of year. When people ask me how the market is, my response is; depends on whether you are one of the successful home sellers within the new record number of homes sold, or whether you are a seller within the record number of homes for sale.
Year to date in the MLS closed sales are up 58 (+3%). The median sale price is up $1500 to $98,000 in spite of interest rates increasing a full percent from the previous year. The average sale price is up $4068 to $119,498. People from the East coast, Left coast, Arizona, and Florida will find these affordable prices unbelievable. The local upper bracket market, which I consider $250,000 up, which is more than double the average sale price, is also on a record pace this year with sales increasing by 22 to 138 closed(+20%), and the inventory for sale up to 248 home listings a 19% increase over last year. Even with the record pace of sales, there is currently an unsold inventory over $250,000 that would equal 11 months supply.
It is indeed a very interesting market to follow. Record sales, record inventory of homes for sale. Welcome to America, the housing market this year is the best example of capitalism you can find. There will be winners and there will be losers, and the economy will be just fine. Those that win in the real estate market are usually those who hitch their wagon to a winning team.
A quick look at the brokerages in the market.RE/MAX Professionals has led the local market in sales every year since 1989, and 2006 is no exception. In all property classes RE/MAX leads with 1282 closed sales to the 2nd place company's 392. In residential sales RE/MAX leads 1097 to the second place company's 365. RE/MAX Professionals has an amazing 33.15% market share closing more dollar volume than the next 4 companies combined, and there are 74 companies reporting sales to the MLS this year. This can be very useful information to have when you need to sell in the most competitive market in our history.
What about agents and teams? There are approximately 880 agents in the MLS. The services of The Pfister Success Team Inc. of RE/MAX Professionals have proven the most consistent over time, ranking no lower than number 2 the past seven consecutive years, and the only team on record to close over 100 residential transactions every year since 2000.
The bottom line is the real estate market is still good, if you associate with someone good. There will be a record number of winners in 2006, and there will be a record number of losers in 2006. Which one you will be will be determined by who, and how you choose to sell or buy your real estate. Best wishes for success in 2006. Buying or selling locally? It would be an honor to serve your family.
Please consider several factors while analyzing this report. The MLS does not include all market activity specifically for sale by owner (fsbo), and direct builder sales. Nationally three years ago it was estimated that a record 24% of sales were fsbo and builder sales. That number dropped to 12% last year with the supply of homes for sale increasing to record numbers. With that in mind, it is assumed that the MLS represents about 85% to 90% of all sales in 2006. The local MLS set records for 8 consecutive years in the number of homes sold 1998 through 2005. Nobody predicted another record setting year in 2006, except this broker now in my 20th year of service as a full time Realtor.
First let's look at the inventory of homes for sale. Three thousand two hundred fifty nine new residential listings taken year to date, up 198 (+6%) over last year. The year began with 223 (+19%) more listings in 2006 than 2005. This increase in the inventory has caused more listings to fail to sell, however the good news is that the first half of 2006 will finish as the best on record for the number of home sold in a first half of year. When people ask me how the market is, my response is; depends on whether you are one of the successful home sellers within the new record number of homes sold, or whether you are a seller within the record number of homes for sale.
Year to date in the MLS closed sales are up 58 (+3%). The median sale price is up $1500 to $98,000 in spite of interest rates increasing a full percent from the previous year. The average sale price is up $4068 to $119,498. People from the East coast, Left coast, Arizona, and Florida will find these affordable prices unbelievable. The local upper bracket market, which I consider $250,000 up, which is more than double the average sale price, is also on a record pace this year with sales increasing by 22 to 138 closed(+20%), and the inventory for sale up to 248 home listings a 19% increase over last year. Even with the record pace of sales, there is currently an unsold inventory over $250,000 that would equal 11 months supply.
It is indeed a very interesting market to follow. Record sales, record inventory of homes for sale. Welcome to America, the housing market this year is the best example of capitalism you can find. There will be winners and there will be losers, and the economy will be just fine. Those that win in the real estate market are usually those who hitch their wagon to a winning team.
A quick look at the brokerages in the market.RE/MAX Professionals has led the local market in sales every year since 1989, and 2006 is no exception. In all property classes RE/MAX leads with 1282 closed sales to the 2nd place company's 392. In residential sales RE/MAX leads 1097 to the second place company's 365. RE/MAX Professionals has an amazing 33.15% market share closing more dollar volume than the next 4 companies combined, and there are 74 companies reporting sales to the MLS this year. This can be very useful information to have when you need to sell in the most competitive market in our history.
What about agents and teams? There are approximately 880 agents in the MLS. The services of The Pfister Success Team Inc. of RE/MAX Professionals have proven the most consistent over time, ranking no lower than number 2 the past seven consecutive years, and the only team on record to close over 100 residential transactions every year since 2000.
The bottom line is the real estate market is still good, if you associate with someone good. There will be a record number of winners in 2006, and there will be a record number of losers in 2006. Which one you will be will be determined by who, and how you choose to sell or buy your real estate. Best wishes for success in 2006. Buying or selling locally? It would be an honor to serve your family.
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