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08

Local Housing Market is Poised for a Busy Spring

SPRINGFIELD (March 8, 2016)  Home sales, sale pending, days on market and new listings all increased while the median single-family home sale price decreased in the Capital Area during February 2016, according to the Capital Area REALTORS® (CAR) Multiple Listing Service.

For the month of February 2016, the median home sale price (for all single-family homes and condominiums) was $103,800, a decrease of 8.8 percent from the $113,800 February 2015 price.  The year-to-date median price through February of 2016 was $105,000, reflecting a 1.9 percent increase over the prior year.  The median is a typical market price where half the homes sold for more, half sold for less.

The number of homes sold in the Capital Area in February of 2016 was nearly unchanged with 206 sales, an increase of one from the prior year.  The number of home sales year-to-date through February of 2016 was 373, reflecting a decrease of 3.4 percent from the prior year.

Sale pendings in February 2016 amounted to 371, reflecting a 17.0 percent increase over the 317 sale pendings during the same time in 2015.

“These strong pending numbers forecast a busy Spring.  This, coupled with recently announced programs such as the Illinois Housing Development Authority’s (IHDA) downpayment assistance program and the Federal Home Loan Bank’s (FHLB) Downpayment Plus Program (DPP) which allow subsidies of up to $6,000 for eligible homebuyers almost guarantee a busy Spring , according to REALTOR Kristie DeBrun, GREEN, GRI, SFR, SRS, president of the organization.

The 34 foreclosure sales in February of 2016 reflected 16.5 percent of all sales, up a couple of percentage points from 14.6 percent in February of 2015.

The average cumulative days on market for all home sales in February of 2016 increased slightly to 106 days, up two days from 104 during February of 2015.

According to CAR, the supply of homes on the market currently stands at 4.0 months.  "The Spring buying season is right around the corner and current supply levels aren't sufficient to accommodate anticipated housing demand," said DeBrun.  “This could have the effect of driving prices higher.  As a result, I would encourage consumers who hope to buy this year to get started as soon as possible,” said DeBrun.  The metric measures the number of months it would take to sell the current inventory of available homes at the current pace.  Five to six months’ worth of homes on the market is considered a balanced market.

“Buyers wanting to take advantage of the very attractive downpayment assistance programs being offered right now should to contact their REALTOR or lender to see if they qualify,” said DeBrun.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 3.66 percent in February 2016, down marginally from the 3.71 average rate during February of 2015.

The Capital Area REALTORS® is the Voice for Real Estate in the Capital Area representing more than 750 members involved in all aspects of the real estate industry.  The Capital Area’s Resource for Real Estate Information can be found at www.SeeHouses.com.

Click HERE for statistical reports.

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