Springfield Illinois Real Estate News

November Saw Positive Market Trends Says Capital Area Realtors Report

SPRINGFIELD Illinois (December 27, 2011) -  According to CAAR (Capital Area Association of Realtors), both the median home sale price for single family homes and unit homes sales for the Capital area rose in November 2011. 

Data from November shows positive market trends, including an increase from last November's median home sale price of 2.6%, up from $103,500 to $106,500.  The median sale price for year-to-date sales through November remained unchanged from the same period in 2010 and stood at $110K. 

For the Capital area, there was an increase of 3.5% in number of homes sold in November 2011, with 238 homes being sold this year as compared to just 230 last year.  There was a 7.2% decrease in home sale for year-to-date totals, with slightly fewer homes (2,949) being sold this year when compared to last year's total year-to-date sales of 3,178 homes during the same period of time.

President of the Capital Area Association of Realtors, Todd Musso, GRI, SFR, is pleased to see market conditions improving.  "I am thrilled to know that, in the Capital Area, during the month of November 238 individuals or families seized on a golden opportunity to invest in the American dream of homeownership.  Although affordability conditions remain strong for qualified and motivated buyers this golden opportunity will not last forever," said Musso.

Musso went on to relate, "While overly strict credit conditions and consumer confidence continue to weigh the market down I see some encouraging trends out there. For the month of November home sales were up, the median price was up and the amount of time it took for a home to sell decreased. Additionally, the number of homes for sale further declined resulting in a more balanced market. Finally, 283 pending contracts were reported to the MLS which should translate into a strong finish for the year".

Fewer homes are on the market in the Capital area than were available for the same period of time last year.  There were 1,555 homes for sale in the Capital area the last week of November 2011, which is a 2.8% decline from November of 2010 when 1,600 homes were listed as available.  On December 20, 2011, there were 1,520 homes for sale.  Based on average monthly sales rates, there is a supply of homes that is expected to last for 5.7 months.  This is down around a half of a percent from November 2011 inventory levels.  Realtors say this is a strong indicator of a balanced market.

2012 is expected to offer very favorable affordability conditions, according to the national Association of Realtors.  In fact, affordability is expected to be the second best year since 1970.   "Our hope is that credit restrictions will ease and allow credit worthy buyers to take advantage of current opportunities," said Musso.

According to the Federal Home Loan Mortgage Corporation, the national average for a thirty-year, fixed-rate conventional mortgage in November 2011 was 3.99, down only slightly from November 2010's average of 4.3%.