Springfield Real Estate Forecast Begins to Brighten

People looking to buy or sell a home in Springfield are facing a challenging housing market, but experts say hopeful signs are already appearing.

Just as in the rest of the country, the prices of homes in Springfield have changed dramatically in the last two years. During that period, the prices of homes in Springfield dropping at an annual rate of 12 to 15 percent.  

According to a report issued by the National Association of Realtors (NAR), housing prices across the country showed a decline of 7.7 percent from July 2007 to July 2008. Prices fell 9.2 percent from May 2008 to May 2009.  Major cities such as Boston, Minneapolis, New York, Chicago and Milwaukee fared much worse.

Web sites like that offer housing forecasts like Housing Predictor say that things are finally starting to look better. Gary Singer, a realtor with Coldwell Banker in Summit, agrees.

"During the past few months, there has been more activity, in terms of people purchasing homes," he said. "That's due in part to the stimulus package."

The federal government's Worker, Homeownership and Business Assistance Act of 2009 includes a tax credit of up to $8,000 for first-time homebuyers. The act,  now  extended to April 30, 2010 also includes a tax credit of up to $6,500 for repeat homebuyers purchasing a principal residence.

Singer estimates that most homes in Springfield are currently selling between $375,000 to 400,000. Three years ago, these same homes sold for nearly $500,000.

On the low end of today's market, smaller stand-alone homes with garages and yards are moving for not much less than $300,000.

"There are dramatic exceptions," Singer said. "There are a few homes that I recently sold for over $1,000,000.  But, the prices, being low as they have been, made it a very appetizing time for buyers."

Appetizing times for buyers means hunger for sellers. In instances where a seller isn't willing to budge from a price, homes can stay on the market for as long as nine months.

On the positive side, the volume of homes currently being sold in Springfield is up dramatically. And with that, some of the backlog of inventory is now being absorbed. As of this writing, there are 61 homes for sale in Springfield, including townhouses and condominiums. Ten months ago, there were somewhere between 80 to 90 houses. "Now there's been an absorption of close to 1/3 of the inventory."

In the long run, real estate in Springfield should retain its value due to its proximity to New York and its small town nature.

"I believe there will be a ongoing demand for property in Springfield," Singer said. "But as far as the immediate, just like most other communities, people are going to be a little cautious about buying when they believe prices are going to continue to drop. But I think that this time next year, we'll see a strong revival of the marketplace."