Clarification of Chicago Tribune Housing Report
On Monday the tenth of March the Chicago Tribune published a front page story in their business section reporting Springfield as the best housing market in the Midwest. I had the honor to be interviewed for that story along with fellow RE/MAX agent Betty Shuster.
There is some clarification required about the story. Wow, was I surprised to read in the story the Tribune reporting Springfield home prices were up 14.4% in 2007 from 2006, thus laying the claim to the fourth best appreciating city in the U.S. and the best housing market in the Midwest. Those numbers were never discussed during my interview.
Here's the clarification. The Tribune received those numbers from the National Association of Realtors (NAR). The methodology used by NAR is different from that used by the Capital Area Association of Realtors (CAAR). The criteria for NAR includes multiple associations of Realtors. Their definition of Springfield includes all of Menard, Sangamon, and Macoupin counties. NAR only counts stand alone single family homes.
CAAR includes condos, single family attached homes and the service area covers all of Menard, and Sangamon counties, and parts of Morgan, Christian, and Macoupin counties. So clarification point number one is the type of property, and the geographical areas are different between CAAR and NAR for reporting purposes.
Clarification point number two is extremely significant, the numbers from NAR were fourth quarter comparisons, not the entire years of 2006, and 2007.
By using different property types, and geographical areas, combined with the fact that the comparison was quarterly not annual, which went unreported, added up to a lot of confusion. That's why you can always count on the most current and accurate reporting on the housing market right here. Everyone clear on the housing reports now?
No? Regardless it was great to see a positive story about our housing market in the Tribune. Thanks also to Tim Landis and the SJR for a follow up story locally. The main point is that NAR and CAAR do report comparing apples to apples, it is when you compare NAR to CAAR you are comparing apples to oranges.
Truth is our median sale price did increase from $99,000 in 2006 to $104,500 in 2007, an increase of 5.5%, something 90% of the housing markets in the country wish they could report. You can see why some folks would be confused when reading Springfield prices were up 14.4%. Price is one of the three most important ingredients to successfully selling a home. Please don't over price your home based upon the NAR report, falsely believing Springfield prices are shooting up like a rocket. Those homes that are selling are up, however not as much as the story reports.
Taking a look at 2008 may get you dizzy, like riding a roller coaster. January down, February up, March down. I believe the combination of falling interest rates mixed with a little sunshine, and home sales will be up again. As long as we aren't on one of those roller coasters that does a loop de loop, home sales will be just fine.
March has been anything but normal. Closed sales are down 21%, sales pending are down 16%, and the median sale price through the first three weeks of March is at $87,700 compared to $107,900 in March of 2007. These numbers will improve as local Realtors work through the end of month closings.
Fortunately my market tested, and proven selling systems are ahead of last years pace having helped 17 home sellers either close or go under contract in 2008. This unique selling system is actually proving more effective in the buyer's market than the level and seller markets of the past. Don't be surprised by that, we are constantly improving our systems to match market conditions. Probably the reason why The Pfister Success Team selling systems have led to 40% more closed home listings than any other agent or team in our market this decade. Proof is in the pudding folks.
If you are preparing to sell your home in 2008 call 652-7653 and reserve a seat at the Free home seller seminar April 3, at The Crowne Plaza Hotel beginning at 6pm. Or simply call 652-sold for a private interview, my listing inventory is selling, and now has room for more home sellers that are serious about getting sold. It would be an honor to serve your family.
May you have a Blessed and safe Easter weekend, from Fritz and Kristie Pfister, Denny Pryor, Keith Haynes, and Amy Mason of the Pfister Success Team at RE/MAX Professionals.
There is some clarification required about the story. Wow, was I surprised to read in the story the Tribune reporting Springfield home prices were up 14.4% in 2007 from 2006, thus laying the claim to the fourth best appreciating city in the U.S. and the best housing market in the Midwest. Those numbers were never discussed during my interview.
Here's the clarification. The Tribune received those numbers from the National Association of Realtors (NAR). The methodology used by NAR is different from that used by the Capital Area Association of Realtors (CAAR). The criteria for NAR includes multiple associations of Realtors. Their definition of Springfield includes all of Menard, Sangamon, and Macoupin counties. NAR only counts stand alone single family homes.
CAAR includes condos, single family attached homes and the service area covers all of Menard, and Sangamon counties, and parts of Morgan, Christian, and Macoupin counties. So clarification point number one is the type of property, and the geographical areas are different between CAAR and NAR for reporting purposes.
Clarification point number two is extremely significant, the numbers from NAR were fourth quarter comparisons, not the entire years of 2006, and 2007.
By using different property types, and geographical areas, combined with the fact that the comparison was quarterly not annual, which went unreported, added up to a lot of confusion. That's why you can always count on the most current and accurate reporting on the housing market right here. Everyone clear on the housing reports now?
No? Regardless it was great to see a positive story about our housing market in the Tribune. Thanks also to Tim Landis and the SJR for a follow up story locally. The main point is that NAR and CAAR do report comparing apples to apples, it is when you compare NAR to CAAR you are comparing apples to oranges.
Truth is our median sale price did increase from $99,000 in 2006 to $104,500 in 2007, an increase of 5.5%, something 90% of the housing markets in the country wish they could report. You can see why some folks would be confused when reading Springfield prices were up 14.4%. Price is one of the three most important ingredients to successfully selling a home. Please don't over price your home based upon the NAR report, falsely believing Springfield prices are shooting up like a rocket. Those homes that are selling are up, however not as much as the story reports.
Taking a look at 2008 may get you dizzy, like riding a roller coaster. January down, February up, March down. I believe the combination of falling interest rates mixed with a little sunshine, and home sales will be up again. As long as we aren't on one of those roller coasters that does a loop de loop, home sales will be just fine.
March has been anything but normal. Closed sales are down 21%, sales pending are down 16%, and the median sale price through the first three weeks of March is at $87,700 compared to $107,900 in March of 2007. These numbers will improve as local Realtors work through the end of month closings.
Fortunately my market tested, and proven selling systems are ahead of last years pace having helped 17 home sellers either close or go under contract in 2008. This unique selling system is actually proving more effective in the buyer's market than the level and seller markets of the past. Don't be surprised by that, we are constantly improving our systems to match market conditions. Probably the reason why The Pfister Success Team selling systems have led to 40% more closed home listings than any other agent or team in our market this decade. Proof is in the pudding folks.
If you are preparing to sell your home in 2008 call 652-7653 and reserve a seat at the Free home seller seminar April 3, at The Crowne Plaza Hotel beginning at 6pm. Or simply call 652-sold for a private interview, my listing inventory is selling, and now has room for more home sellers that are serious about getting sold. It would be an honor to serve your family.
May you have a Blessed and safe Easter weekend, from Fritz and Kristie Pfister, Denny Pryor, Keith Haynes, and Amy Mason of the Pfister Success Team at RE/MAX Professionals.
posted by Fritz Pfister at 7:57 AM
<< Home