Low interest rates keep area housing market moving

Good news for home buyers in the Springfield area: interest rates are low and houses are available, according to Becky Woodall, real estate agent with Coldwell Banker Vanguard.

"The business is there and the homes are there," Woodall said.

John Heitz, real estate broker with ReMax House of Brokers, agreed, and said that lower-priced homes are selling especially well.

"Anything under $120,000 to $125,000 seems to be moving well. The higher you go, it slows down proportionately until you get to the more expensive homes, which are moving very slow," Heitz said.

There are a glut of houses above the $250,000 range, he said.

"The price ranges above $300,000 are being hurt the most." Many of the buyers in that particular price range are upwardly mobile people, such as corporate executives who are often transferred to new positions out of town, he said.

"That's a tough price range right now."

However, now is a good time for most buyers to invest in a new home.

Since interest rates are so low, renters can now afford to become first-time home buyers, Heitz said.

The "step up" market has also increased, he added. That market includes first-time home buyers in $80,000 to $90,000 homes who are now able to step up to something nicer in the $120,000 to $125,000 range, Heitz said.

Middle to higher priced homeowners are choosing to remain in their homes and refinance, he added.

Kathy Bass King, president and CEO of Mid-Missouri Mortgage, said her company has been just as busy refinancing loans as it has been establishing new loans.

"We've just had the best of both worlds," King said. "The last year-and-a-half has been phenomenal. We have been very fortunate in our market. The rates have been low and the economy in Springfield has been good."

A recent half-point drop in interest rates was more than most experts expected, King said, who has been in the mortgage lending business for 30 years.

King and Woodall both said that the Springfield residential market tends to avoid the dramatic ups and downs that larger cities and metropolitan areas often experience. Woodall attributed that to the community's stable economy.

Heitz said he advises buyers to borrow as much money as they can while interest rates are low.

"With interest rates being as low as they are, a buyer should buy as much of a house as he feels comfortable with," Heitz said.

Woodall and Heitz agreed that the most rapidly growing residential areas include southwest Springfield and areas around Nixa and Ozark.

North Springfield, specifically areas north of Interstate 44, as well as Republic and Willard also are experiencing healthy growth, they said.

Heitz said the latest boom area is off of Highway YY and East Division.

"In Springfield, if you're talking about mid- to upper-end homes, that's the area to be in," he said.

Woodall said she advises sellers to be reasonable when pricing their homes.

"Price your house right. Do not price it high and expect to come down. If you price it right to start with, you won't have to come down," Woodall said.

She advises buyers to carefully consider their decisions.

"Shop the market. Have your real estate agent show you comparable sales. Become an educated buyer so you can make a tempting offer to the seller."

Many buyers think they should start low, but if their offer is too low, they will only insult the seller, Woodall said.

"They have to make an offer that will tempt the seller and whet their appetite, so that they will want to work with them."

At the same time, a seller should not price a house so unreasonably that buyers won't even look at it, she said.