Springfield MO Real Estate For Sale
Why are there so many homes for sale in Springfield, MO? I get asked that question a lot. My first thought is always, "Do we have a higher percentage of homes for sale than other areas?" Personally, I don't think so. The Springfield real estate market is somewhat insulated from the extremes other parts of the country experience. Property values did not decline as much as California, Las Vegas or Florida. Springfield also did not feel the housing market crash as quickly as parts of the country. Much of our market was supported by families who relocated from the East and West Coasts. When those families began having difficulty selling their homes, our market began to feel the decline in the market. The flip side of this is Springfield may be slow to recover, relying on other parts of the country to rebound in order to revive the flow of families moving into our area.
Many times, clients ask this question because they are concerned about buying a home in a "bad" neighborhood, or are looking for an underlying problem. I decided to make a list of the most common reasons the inventory in Springfield has increased over the past couple of years.
- The inventory is not cycling the same as it did in 2005. Homes that were placed on the market a year or two ago did not move as quickly, if at all, as they would in a normal real estate cycle. These homes remain on the market while new listings are added. Naturally, the inventory rises.
- Unrealistic pricing. There are many sellers who would like to take advantage of the market today, but don't understand that it is nearly impossible to get "old market value" for their home, while only paying "today's market value" when purchasing their new home. Many sellers are throwing their homes out there in hopes of selling, but do not have any real motivation to sell. There are others that are truly motivated...yet they owe too much on their home to be able to lower their asking price and simply don't have the money to bring to the closing table.
- Narrow market of buyers in specific price ranges. Homes listed over $250,000 are moving very slowly. With lending requirements tightening for those who are self-employed, and the reduction in "low money down" loans, the majority of these homes will be sold to a conventional borrower with 20% down. In today's economy, the number of buyers who fall in that category is greatly reduced.
- Unfinished subdivisions. Another question I'm always asked is, "Is there something wrong with this subdivision?" There are many subdivisions that began just as the market crashed. Builders' list prices averaged $100 psf for new construction homes. In today's market, it's not uncommon to buy the same home for $70-80 psf. Many new construction homes were left behind as consumers were drawn to the foreclosures and bank repos available in the new market. Builders simply couldn't compete.
Homes For Sale in Springfield Missouri
If you are searching for homes for sale in Springfield Missouri, I have provided some quick links for you:
About the author: I am full-time REALTOR® with RE/MAX Solutions in Springfield, MO, and a member of the Greater Springfield Board of REALTORS®. I have helped hundreds of families in the Springfield, Nixa, Republic and Ozark real estate markets, whether buying a home, or selling a home. Visit my website to search for All Springfield MO Area MLS listings. Want to know what our market is like? My website is also an excellent resource for current Springfield MO Area Real Estate Market Reports, as well as current market reports for Ozark, Nixa, Republic, and Rogersville.