| The consistency in the number of home sales within | | | | homes vastly outnumbering buyers. A record 2362 |
| the local housing market should be the envy of the | | | | home listings expired, and 1174 withdrew without a |
| state and nation. Considering that 2003, 2004, and | | | | sale. There were 367 more pending contracts that |
| 2005 were seller's markets, and 2006, 2007 were | | | | failed to close than in 2006, resulting in 1554 home |
| buyer's markets; look at the consistent number of | | | | listings returning to the market. |
| home sales as reported by member brokers to The | | | | The great news to begin 2008 is that interest rates |
| Capital Area Association of Realtors (CAAR) MLS: | | | | fell below 6% for only the second time this decade. |
| 2003 3996 | | | | That should provide motivation for indecisive home |
| 2004 4005 | | | | buyers to purchase. Caar also reported closed home |
| 2005 4197* | | | | sales were up in December, however pending sales |
| 2006 4175 | | | | were down which will be reflected in January closings. |
| 2007 3998 | | | | It may have been a struggle for home sellers in 2007 |
| *CAAR record high | | | | due to excessive numbers of homes for sale, |
| The rise in the median sale price of a home in the | | | | however overall it was a good year in the local |
| face of an oversupply of homes for sale defies the | | | | housing market. There are hundreds of markets that |
| laws of supply and demand as witnessed below: | | | | would trade places in a New York second, proving |
| 2003 $90,500 | | | | once again that real estate is local. In spite of the |
| 2004 $92,750 | | | | negative psychology within the housing market |
| 2005 $100,000 | | | | created by the media, flat job growth, incompetent |
| 2006 $99,000 | | | | state government, a tax and spend governor, and |
| 2007 $104,500* | | | | the highest interest rates in two years throughout |
| *CAAR record high | | | | most of the year, 2007 in Springfield Illinois turned |
| The only reason 2006, and 2007 were buyer's | | | | out pretty darn good. |
| markets was due to the record number of homes | | | | Just imagine how good the local housing market could |
| for sale. Although demand remained steady, supply | | | | have been, and would be if there were; responsible |
| skyrocketed. The number of home listings increased | | | | reporting in the media, there was a functional state |
| from 6213 in 2003 to a record 8082 in 2006, and fell | | | | government, and there was a governor with policies |
| slightly to 7960 in 2007. | | | | that encouraged business growth along with lower |
| There's more to the story from 2007. A record | | | | taxes; which creates jobs. |
| number of listings did not sell with the supply of | | | | |