Local Housing Bubble Hasn't Burst

I read a great article that only reaffirms what I am seeing in the real estate market for Springfield Missouri. The article was written by Martin Crutsinger, The Associated Press, published in the Springfield Newsleader and states that nationally, home prices are dropping, but in Springfield they are still rising.

Martin Crutsinger
The Associated Press

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Washington — The median price of a new home plunged in September by the largest amount in more than 35 years, even as the pace of sales rebounded for a second month.
The Commerce Department reported that the median price for a new home sold in September was $217,100, a drop of 9.7 percent from September 2005. It was the lowest median price for a new home since September 2004 and the sharpest year-over-year decline since December 1970. The weakness in new home prices was even sharper than a 2.5 percent fall in the price of existing homes last month, which had been the biggest drop on record.



The Springfield housing market, however, continue to boast steady growth.

The local median home price increased by 2.6 percent to $123,950 in September, compared with $120,775 in September 2005, the Greater Springfield Board of Realtors said.

"The Springfield market is still very good," said Stacey Clem, president of the local Board of Realtors. "... The prices have stayed steady and gone up a little bit."

Unlike the national housing market, Springfield did not have "the big bubble to bust," Clem said, "and our properties have not seen the big appreciations."

Nationally, the price decline for new homes came while the sales pace picked up, rising by 5.3 percent to a seasonally adjusted annual rate 1.075 million homes. It marked the second consecutive increase in sales following three months of declines.

The declines in prices served to underscore the severity of the correction in the once-booming housing market, which had seen sales of both new and existing homes soar to record levels for five consecutive years, propelled by the lowest mortgage rates in more than four decades.

This year, with mortgage rates rising through midsummer, sales have cooled considerably, with housing expected to trim more than a percentage point from overall growth in the last half of the year.

At issue is whether the slowdown will be enough to push the country into an outright recession. The Federal Reserve, recognizing the weakness in housing, halted a two-year string of interest rate increases in August and left rates unchanged for a third straight meeting on Wednesday.

The Fed, however, gave no indication that it planned to start cutting rates because of the weakness in housing, saying it was still concerned that inflation remained too high.



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News-Leader reporter Didi Tang contributed to this story

Welcome to Greene and Christian County, Missouri!!

The Springfield Multiple Listing System includes the following cities in and around Springfield: Republic, Nixa, Ozark, Rogersville, Highlandville, Spokane, Strafford, Clever, , Mansfield, Battlefield, Seymour, Fordland, Willard, Ava, Billings, Marionville and many more.

Over the past year the average market time is 63 days and the average sold price is $147,316. Christian County is one of the fastest growing counties in Missouri. We are close to Branson, Missouri, several lakes, Silver Dollar City and Bass Pro Shops. We have excellent schools, beautiful countrysides, affordable homes, and a wide variety of music entertainers and restaurants.

Residential Sales Trends

In a letter from a loan officer friend of mine, I am excited to learn that the current real estate housing market in Springfield, Missouri and surrounding counties is still pretty steady when compared to August 2005. The growth in the "average sales price" of houses has slowed. The number of houses sold in our area is still steady or slightly increasing, and the average sales price is still increasing, just not at the rates we have seen over the last 3 years. This is good news to us, as there are markets in the U.S. that have seen their number of sales as well as “average sales prices” decline over last years numbers.

According to the Greater Springfield Board of Realtors, the majority of our current listings (53%) are still in the very strong market of $120,000 to $300,000. However, there is a 10% increase in inventory on houses listed above $300,000. Homes under $120,000 only include (33%) of the market. These homes usually do not remain on the market long.

With this in mind, it's my opinion there is no reason why buyers should not be purchasing a home right now. Interest rates are stable, inventory is ample and our area is one of the best areas to live in. See Springfield Missouri real estate current homes for sale at: kayvankampen.com.

Happy House Hunting!

Kay Van Kampen Attends Re/MAX Success Convention

Kay Van Kampen and two members of her team, Rhonda Jones and Lina Robertson attended the Mid States RE/MAX Success Convention October 2 and 3rd, 2006 at the Chateau on the Lakes in Branson, Missouri. At the convention, they attended several classes on new technology including safety classes for Realtors.

Kay Van Kampen was also on a panel with two other agents, along with David Teefy, developer of the new RE/MAX website discussing how the new site has increased their business. The new website is allowing the public to search for homes in their own areas and overseas in 60+ countries. Agents are finding the website is an added bonus to their business. Check out Kay's site at: kayvankampen.com.

Welcome! As an experienced realtor of 18 years, I write ads every day. I am constantly trying to find different ways to describe every new listing and ways to describe how great this listing will be once it becomes a home to the proud new owners. Writing an ad that draws attention and is full of information, yet short and to the point is difficult to do when you have a great home to talk about. Let's see if this works.

Our new listing is this 2200 square foot 4 bedroom, 2 bath brick ranch in one of the finest neighborhoods in Ozark. The home, which has an unassuming charm that complements the environment, offers an open floor plan, formal dining room with high ceilings and hardwood floors. The focal point of the living room is the gas log fireplace. An enclosed patio has been added for additional living space. A large kitchen offers marble countertops, a center island, and oversized informal dining area. Top it all off with a 3 car garage. See all the amenities this great home has to offer. To see this and other homes that might interest you, go to our new website: kayvankampen.com. I will add photos and a virtual tour next time.

Real estate in Springfield Missouri and surrounding areas is still very active. Buyers have an abundant supply of homes to choose from and interest rates are still very desirable.


Happy House Hunting

Kay Van Kampen