Springfield Illinois Weathers Storms in 2006
In March 2006 three tornadoes tore through Springfield destroying or damaging over 1700 homes and businesses. Downed power lines and poles brought on extended power outages. Then again in April, six tornadoes were reported in the county, this time with less severe damage. The community pulled together, neighbor helping neighbor, and Springfield weathered the storm.
The first week in December 2006 Springfield, and the surrounding area was blasted with an ice storm followed by a blizzard dumping 6 to 12 inches of snow in ferocious winds. Once again facing extended power outages, downed trees, utility poles, blocked roadways, numerous accidents, and one heck of a mess. Once again neighbor helped neighbor and Springfield weathered the storm.
The national housing slowdown also hit in 2006, and Springfield weathered the storm. As with any major storm there was good news and there was bad news for the local real estate consumer in the Springfield area in 2006.
The good news is that local Realtors sold over 4100 homes for the second straight year. Final year end sales continue to be reported, however the 4146 closed sales reported through 1-03-07 for 2006, come very close to the record 4182 closed home sales in 2005.
The bad news was that 3189 listings did not sell in 2006 which was a record local Realtors did not want to establish. If the Springfield market had anything in common with the national market this year it would be the excessive inventory of homes for sale. The market received a bit of good news as the rate of homes being listed during the 4th quarter slowed. The CAAR (Capital Area Association of Realtors) member brokers reported 1521 home listings remained available for sale on Jan. 1, 2007, compared to 1540 a year earlier.
The good news is and was, interest rates remain historically low, and the unemployment rate of 3.5% is at a 7 year low. That means the fundamentals are in place for a healthy real estate market.
The good news, bad news is that the CAAR MLS has now experienced 9 consecutive years of record sales. Unprecedented for the market, there is no pent up demand. With satisfied demand combined with a continuing record number of homes for sale, 2007 will continue to challenge sellers and their agents, as they fight over outnumbered buyers to get sold. The value of full service agents has gone up dramatically as for sale by owner sales fell 50% from the highs of the sellers market, down to 12% of the sales. Of those sales, 29% were between family and friends, meaning those sellers did not have to face the extreme competition of the market, according to the National Association of Realtors surveys.
The good news is that the Springfield market continues to be one of the most affordable in the state and nation. The bad news for sellers, good news for buyers, is the median sale price dropped in 2006 for the first time since 1994. The good news for sellers was the drop was a mere one half percent down to $99,500 from $100,000 in 2005. The envy of the state and nation, where both exceed $200,000 median sales prices.
There was good news for sellers of homes listed $250,000 and higher, a record 332 sales closed in 2006 representing 8% of all sales. The 287 in 2005 represented 6.8% of all sales. The bad news was for the 195 who did not sell, a 7 month inventory of homes listed $250,000 and higher heading into 2007.
The good news is there has never been better market conditions for home buyers. Home prices stabilizing, even falling slightly, with many home sellers lowering their asking prices to obtain offers, and historically cheap money to borrow to purchase a home. If you haven't bought a home during this record period, you should now.
The real estate consumer of Springfield, Illinois should count their blessings. They weathered the storm of the national housing slowdown better than most, proving once again real estate trends are local. What may be in store for local real estate consumers in 2007 remains to be seen, however their real estate market is on solid footing with the potential for another record year, while other markets in the state and nation struggle.
The good news is that the Springfield market is in excellent condition. The bad news is you would never know it by reading, seeing, or listening to the media. The local media, by repeatedly airing bad news about the national housing market has had a negative impact on the local housing market. I wonder if they realize what they have done to the value and saleability of their own homes with their reporting? Once again supporting the fact that you should never believe everything you hear or see in the news.
May you have a healthy and prosperous New Year.
On a side note I would like to wish Happy Birthday to two members of the greatest generation. My mother Joan Pfister who will be a spry 81 on Jan. 10th, and to my aunt Chloe Rehfield who celebrates her 95th on Jan. 15th. I love you both.
The first week in December 2006 Springfield, and the surrounding area was blasted with an ice storm followed by a blizzard dumping 6 to 12 inches of snow in ferocious winds. Once again facing extended power outages, downed trees, utility poles, blocked roadways, numerous accidents, and one heck of a mess. Once again neighbor helped neighbor and Springfield weathered the storm.
The national housing slowdown also hit in 2006, and Springfield weathered the storm. As with any major storm there was good news and there was bad news for the local real estate consumer in the Springfield area in 2006.
The good news is that local Realtors sold over 4100 homes for the second straight year. Final year end sales continue to be reported, however the 4146 closed sales reported through 1-03-07 for 2006, come very close to the record 4182 closed home sales in 2005.
The bad news was that 3189 listings did not sell in 2006 which was a record local Realtors did not want to establish. If the Springfield market had anything in common with the national market this year it would be the excessive inventory of homes for sale. The market received a bit of good news as the rate of homes being listed during the 4th quarter slowed. The CAAR (Capital Area Association of Realtors) member brokers reported 1521 home listings remained available for sale on Jan. 1, 2007, compared to 1540 a year earlier.
The good news is and was, interest rates remain historically low, and the unemployment rate of 3.5% is at a 7 year low. That means the fundamentals are in place for a healthy real estate market.
The good news, bad news is that the CAAR MLS has now experienced 9 consecutive years of record sales. Unprecedented for the market, there is no pent up demand. With satisfied demand combined with a continuing record number of homes for sale, 2007 will continue to challenge sellers and their agents, as they fight over outnumbered buyers to get sold. The value of full service agents has gone up dramatically as for sale by owner sales fell 50% from the highs of the sellers market, down to 12% of the sales. Of those sales, 29% were between family and friends, meaning those sellers did not have to face the extreme competition of the market, according to the National Association of Realtors surveys.
The good news is that the Springfield market continues to be one of the most affordable in the state and nation. The bad news for sellers, good news for buyers, is the median sale price dropped in 2006 for the first time since 1994. The good news for sellers was the drop was a mere one half percent down to $99,500 from $100,000 in 2005. The envy of the state and nation, where both exceed $200,000 median sales prices.
There was good news for sellers of homes listed $250,000 and higher, a record 332 sales closed in 2006 representing 8% of all sales. The 287 in 2005 represented 6.8% of all sales. The bad news was for the 195 who did not sell, a 7 month inventory of homes listed $250,000 and higher heading into 2007.
The good news is there has never been better market conditions for home buyers. Home prices stabilizing, even falling slightly, with many home sellers lowering their asking prices to obtain offers, and historically cheap money to borrow to purchase a home. If you haven't bought a home during this record period, you should now.
The real estate consumer of Springfield, Illinois should count their blessings. They weathered the storm of the national housing slowdown better than most, proving once again real estate trends are local. What may be in store for local real estate consumers in 2007 remains to be seen, however their real estate market is on solid footing with the potential for another record year, while other markets in the state and nation struggle.
The good news is that the Springfield market is in excellent condition. The bad news is you would never know it by reading, seeing, or listening to the media. The local media, by repeatedly airing bad news about the national housing market has had a negative impact on the local housing market. I wonder if they realize what they have done to the value and saleability of their own homes with their reporting? Once again supporting the fact that you should never believe everything you hear or see in the news.
May you have a healthy and prosperous New Year.
On a side note I would like to wish Happy Birthday to two members of the greatest generation. My mother Joan Pfister who will be a spry 81 on Jan. 10th, and to my aunt Chloe Rehfield who celebrates her 95th on Jan. 15th. I love you both.
Labels: homes
<< Home