KEEP AN EYE ON SPRINGFIELD PRICES AS MORE HOMES ARE SELLING!

Even through arctic blasts and feet of snow, 10 houses were sold during February and there are an additional 30 homes currently Under Contract, pending sale. Deals are being done. Don’t let the weather fool you.

In reviewing January, 2014 vs. January 2013 (February data is not yet available), according to Garden State MLS, the average home price in Springfield rose +8% (10 sales last year vs. 8 this year). Of the previous 6 months, versus the same period last year, prices rose an average of +5%. These growth figures, of course can be misleading. There were a bunch of new constructions in the mix, selling at much higher prices, that artificially inflate the average. But, for people moving into town from elsewhere, these numbers bode well to overall perception and home values. Most importantly, MORE houses are selling. In the past 6 months, 89 house have sold compared to only 66 during the same period last year; an incredible +35% increase.

Inventory, however, is still very low, with only 42 houses currently on the market. Sellers can get away with listing their homes at a premium. But, buyers are smart. They watch the prices on a myriad of websites. Bottom line – we can start inching sale prices up as we head toward the spring, but don’t expect huge price increases simply because of the low inventory levels. Right now, we still see 60% of the available homes priced above $400,000, which is a good thing, but we can’t get cocky. 45% of all homes for sale have been on the market for 3 months or longer. Why? Because sellers are being overly optimistic about rising trends and are overpricing their homes. We need to take baby steps, and we will see an incremental rise in prices that benefit the sellers and add value to the town overall.

Home Sales (February 1-28, 2014):

445 Morris Ave. #15 - Condo - 1 Bed/1 Bath - $110,000 (originally listed at $125,000; on market for 42 days)

2-D Troy Dr. - Condo - 1 Bed/1 Bath - $180,000 (originally listed at $200,000; on the market for 30 days)

8 Remer Ave. - Colonial - 3 Bed/1 Bath - $330,000 (originally listed at $339,000; on the market for 25 days)

151 Hillside Ave. – Cape Cod - 3 Bed/2 Bath - $350,000 (originally listed at $369,000; on market for 234 days)

C302 Park Place – Townhouse - 3 Bed/2.5 Bath - $410,000 (originally listed at $409,900; on market for 32 days)

58 Ruby St. – Split Level - 4 Bed/2 Bath - $418,000 (originally listed at $429,900; on market for 66 days)

44 Sherwood Rd. – Cape Cod - 3 Bed/3 Bath - $430,000 (originally listed at $510,000; on market for 219 days)

27 Mohawk Dr. – Split Level – 4 Bed/2 Full & 2 Half Bath - $459,500 (originally listed for $545,000; on market for 261 days)

26 Pine La. – Colonial - 4 Bed/2.5 Bath - $602,900 (originally listed for $595,900; on market for 200 days)

66 Fieldstone Dr. – Colonial - 5 Bed/3 Full & 2 Half Bath - $765,000 (originally listed for $795,900; on market for 186 days)