December and Full Year 2011 Real Estate Sales
Posted by Jim Stewart on Monday, January 9th, 2012 at 5:53pm.Sales in the Springfield market area were essentially flat in December compared to the same month one year ago. Total sales were 394 units in Dec, 2011 compared to 384 units in Oct, 2010. For the year, 2011 sales ended down 7.05% compared to 2010. There were 5,392 residential homes sold through the Greater Springfield Board of Realtors MLS system in 2011 compared to 5,801 in 2010.
The median selling price in Dec, 2011 fell 8.55% to $99,900 compared to $109,250 in Dec, 2010. December’s sub-$100,000 median price is the third month in a row prices have been below six figures and the sixth month in the last 12 at $100,000 or less. For the full year median home prices fell 5.32%. Median prices have been bouncing in a tight range between around $100,000 and $110,000 since August, 2010. It remains to be seen whether the last three months at around $99,900 represent a floor in prices or just a consolidation pattern in preparation of another leg down but I’m optimistic that we’ve seen the worst of the declines. The economy continues to slowly improve and hiring has begun to improve.
Foreclosures made up 22.9% of all sales in 2011. The median selling price on foreclosures was 44% less than the median selling price of non-foreclosure homes in 2011.
Interest rates continue to be remarkably low with the 30 year fixed rate loan hovering around 4%. The principal and interest payment on a 30 year, $100,000 loan at 4% APR is only $477.42! Consider that homes in this price range can rent from $750 to $900 per month. Even after tacking on for taxes and insurance you can still own for potentially $200+ per month less than renting the same home! Although it's a bit of a cliché, these rates coupled with the fall in prices really do represent a great opportunity in home affordability.
Jim StewartCertified Distressed Property Expert
Broker/Officer
Assist 2 Sell
New Home Sales, LLC
417-889-7000
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