Update on Springfield's Housing Market
If you’re a buyer or a seller in Springfield right now, you probably want to get an update on what to expect in the fourth quarter of 2020, so let’s talk about what the market looks like these days. Typically, I joke that real estate is like baseball —It starts early in the spring and goes into late fall, which typically means we see a slowdown in the market toward late October. People are busy preparing for the holidays and are usually less interested in moving during the winter.
Because of that market slowdown, people usually wait until spring to sell their homes, but we are not in a normal year. Even with COVID, our market hasn’t slowed down as much as you’d usually expect headed into the winter. In my opinion, there are three big reasons for this:
1) Springfield has a low cost of living
2) People are relocating for jobs or life changes right now
3) Interest rates were lowered this year, which meant buyers can borrow more money with a lower interest rate. So if you were previously pre-qualified for a loan up to $150k, you could possibly stretch to $175k now.
All of that is good news for Springfield’s real estate market, but what does that mean going into the fourth quarter? Well, first thing you should know is that we are in a seller’s market. That means there are more buyers than homes available right now, and I’m seeing that across the board in all price rages.
Why is that a problem? Well, if you’re a seller, it’s a good thing. There are not many homes going on the market, so the homes that are listed are moving quickly. But if you’re a buyer, that means you will likely see an increase in home prices.
The biggest shortage I’m seeing is in the $175–300k range. That’s where I’m seeing the least amount of homes available, and keep in mind the average price of a house in Springfield is $185k. So that means the shortage is really hitting people who are looking to buy their second home or who have a bigger family.
The good news, is homes are moving really quickly right now, and I don’t think we will see much of a slowdown in the fourth quarter of 2020. Right now, most homes are selling within a week of being on the market.
And if you’re considering putting off buying a home until 2021, keep this in mind—This is our third year of being in a seller’s market, so I can’t imagine it getting a lot better next year. I know that doesn’t sound great for buyers, but here’s my advice. Be patient; it always seems to work out. To help yourself out, work with your real estate agent to get pre-qualified for a loan and to put together a winning offer. When you find a home you like, you have to be ready to act fast, so come in with strongest offer. That means, if you’re asking for things like closing cost to be paid for by seller, maybe come in over the list price. Your agent can advise you on how to put together the cleanest contract, so talk with them.
All in all, our market is going strong, prices are going up and the number of available homes is a bit tight right now. If you’re a seller, that’s all great news. If you’re a buyer, it means you’ll need to put yourself in a position where you can be competitive with your offers, and it means you’ll need to be patient and not get frustrated if a home you love goes under contract before you can make a move.
This has been a wild year so far, but it looks like our housing market is going to end on a strong note in 2020. Happy house hunting, everyone!
