The consistency in the number of home sales within the local housing market should be the envy of the state and nation. Considering that 2003, 2004, and 2005 were seller's markets, and 2006, 2007 were buyer's markets; look at the consistent number of home sales as reported by member brokers to The Capital Area Association of Realtors (CAAR) MLS:
2003 3996 2004 4005 2005 4197* 2006 4175 2007 3998 *CAAR record high
The rise in the median sale price of a home in the face of an oversupply of homes for sale defies the laws of supply and demand as witnessed below:
2003 $90,500 2004 $92,750 2005 $100,000 2006 $99,000 2007 $104,500* *CAAR record high
The only reason 2006, and 2007 were buyer's markets was due to the record number of homes for sale. Although demand remained steady, supply skyrocketed. The number of home listings increased from 6213 in 2003 to a record 8082 in 2006, and fell slightly to 7960 in 2007.
There's more to the story from 2007. A record number of listings did not sell with the supply of homes vastly outnumbering buyers. A record 2362 home listings expired, and 1174 withdrew without a sale. There were 367 more pending contracts that failed to close than in 2006, resulting in 1554 home listings returning to the market.
The great news to begin 2008 is that interest rates fell below 6% for only the second time this decade. That should provide motivation for indecisive home buyers to purchase. Caar also reported closed home sales were up in December, however pending sales were down which will be reflected in January closings.
It may have been a struggle for home sellers in 2007 due to excessive numbers of homes for sale, however overall it was a good year in the local housing market. There are hundreds of markets that would trade places in a New York second, proving once again that real estate is local. In spite of the negative psychology within the housing market created by the media, flat job growth, incompetent state government, a tax and spend governor, and the highest interest rates in two years throughout most of the year, 2007 in Springfield Illinois turned out pretty darn good.
Just imagine how good the local housing market could have been, and would be if there were; responsible reporting in the media, there was a functional state government, and there was a governor with policies that encouraged business growth along with lower taxes; which creates jobs.
Right now couldn't be a better time to invest in a home in Spokane. In 2007, Spokane was one of only a few cities nationwide where the median price of a home increased in value. Contrary to many major markets, "Most of Spokane's speculative builders dramatically reduced the number homes they will build in 2008," said Robert Henry, President of R&D Construction and board member of the Spokane Home Builders Association. The result of declining home starts means that at the current rate of market absorption (the rate at which new homes are currently selling), the current inventory of new homes will have been purchased by the first quarter of 2009. Production builders are likely to continue with far fewer home starts well into 2009. Many builders have dramatically reduced the pricing of homes that have been completed for several months. Now is the time to find and negotiate great deals on new homes. Buyers who have a decent credit rating and are pre-approved are in excellent position to negotiate with motivated sellers. For a complete search of homes for sale in Spokane, visit Donna Henry's site at: http://www.donnasellsspokane.com
Both Fritz Pfister & Robert Henry are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Fritz Pfister has sinced written about articles on various topics from Real Estate, Prospects and Sell Home. Fritz Pfister is a licensed Realtor with RE/MAX Professionals Springfield Illinois.Fritz is a leader in the local real estate market and hosts a live one hour radio program, now in its' 13th year.Fritz's website is. Fritz Pfister's top article generates over 3600 views. to your Favourites.
Robert Henry has sinced written about articles on various topics from Real Estate, Finances and Family. . Robert Henry's top article generates over 8100 views. to your Favourites.