Springfield home sales up, inventory down

The National Association of Realtors reported existing home sales declined for the second straight month in October and pending home sales slid for the fourth straight month in September.

Agents in Missouri are looking at a different picture.

Locally, the Greater Springfield Board of Realtors reported 733 homes sold in September, up 11.5 percent from 657 homes sold in August.

In the Ozarks, there’s a more than eight-month supply of homes on the market and inventory is down 18 percent compared to July 2012.

Across the Show-Me State, data from the Missouri Association of Realtors reflects a mixed bag market that favors both sellers and buyers.

Sales in October were up 4 percent compared to the same time last year, while median prices were up 9.8 percent and average prices rose 10 percent. Adding to Missouri’s picture, the time it took to sell a home shrunk by 10 days. However, overall homes sales for the month slowed 2.7 percent compared to the same time last year.

“In the summer, it seemed very much to be a seller’s market, with multiple offers coming in on homes and bidding wars happening,” said Mike Brown, an agent with Coldwell Banker Vanguard Realtors. “Right now, things seem to be very balanced, both a buyer’s and seller’s market. Well-priced homes are getting quick offers, usually within about 96-97 percent of list price.”

However, Tyler Rhoads, a Realtor with Springfield-based Rhoads Real Estate Group LLC, said he sees the market headed in a different direction.

“As of now, we are still in a buyer’s market but definitely headed in the seller’s direction,” Rhoads said. “Rates are still very, very low and inventory is still supporting buyer’s needs. I believe sellers will soon benefit in the market from the rapid consumption of houses from buyers, coupled by the lack of new residential construction keeping pace.”

MAR’s third-quarter numbers show a positive trend statewide with residential transactions up 15 percent compared to 2012 and days on the market dropping by 12. Quarterly sales rose to $3.3 billion – 25 percent higher than the same period in 2012, and 50 percent higher than 2011 data.

Brown said the government shutdown shook consumer confidence, but he feels it’s starting to rebound. Rhoads also has seen improvement in the market compared to 2012.

“If you think of real estate as purely an investment, you can compare our housing market to a low-risk investment,” he said. “You may not see a 20 percent increase in value in a year, but you also won’t lose that.

“Many have reported a bad market last year and a good or great market this year. What it is, is just the market.”

Real estate market tracker CoreLogic (NYSE: CLGX) found national home prices increased 0.2 percent in September, much slower than the 2 percent monthly growth in the spring. The national mortgage delinquency rate – a precursor of foreclosures representing mortgage loans 90 days or more delinquent – is down as well. Peaking at 8.5 percent in January 2010, the nationwide rate moved to 5.3 percent in August. GSBOR reports the average Springfield-area September selling price of a home as $180,000.

Agent trends
Rhoads said the southwest Missouri market experienced an agent decrease following the recession, but was still able to meet customer demand.

“There seems to be fewer agents than last year, but I know that doesn’t follow what’s being reported,” Rhoads said. “I think that since major media outlets are reporting better market conditions, many agents who got out of the industry during the difficult times are coming back.

You ask if there are enough agents for the market? Yes, there are enough in numbers.”

Brown said the Greater Springfield Board of Realtors currently has 1,791 active agents.  Across Springfield, agent trends are a mixed bag. According to Springfield Business Journal list research, Springfield’s largest residential real estate firm, Murney Associates, Realtors, currently has 228 agents, down from 470 in 2012. However, firms such as Keller Williams Realty posted an increase to 140 this year, compared to 107 agents in 2012.  

“My biggest concern is quality,” Rhoads said. “It’s the duty and responsibility of every broker to make sure their agents are trained properly in order to best represent their buyers and sellers according to local, state and national standards.

“That is a concern everywhere. In order for buyers and sellers to know they are dealing with a quality agent, they need to ask questions.

“First of all, are they full time or do they just do this for fun? … This is an ever-changing market transacting the biggest investment both emotionally and financially in most peoples lives, and should be treated as such.”

Multilist movement
As market conditions slowly rebound, current and potential new agents will benefit from the consolidation of several local multilist service data centers into one regional umbrella.

Plans are still moving forward to create the Southern Missouri Regional MLS LLC, which will be managed by Greater Springfield Board of Realtors Association Executive Jessica Hickok. SoMo Regional is expected to include the GSBOR, Ozarks Board of Realtors, Newton/McDonald County Board of Realtors, Southwest Missouri Board of Realtors, Tri-Lakes Board of Realtors and West Plains Board of Realtors.

The GSBOR formally committed to the consolidation on Aug. 7. Votes by the boards of six other Realtor groups in southwest Missouri to join the umbrella MLS were expected to take place this fall. Hickok did not respond to multiple requests for comment by press time.

“This means we all will have easier access to all homes that are on the market,” Brown said. “Sellers will have their home listed regionally rather than in specific MLS systems, buyers will be able to search the whole area from one website, and agents will find it easier to serve clients more efficiently.”

One of the area’s largest associations won’t be joining the new SoMo Regional, however.

Kim Cox, executive of Joplin-based Ozark Gateway Association of Realtors, told Springfield Business Journal in August, membership wasn’t financially feasible at that time. The group revisited the issue in November.

“The Ozark Gateway Association decided this month through a membership vote that it is not a good fit for us at this time,” said Melissa Annis, president of the Ozark Gateway Association of Realtors and an agent with Keller Williams Realty. “There were a variety of reasons, depending upon the agent.

“Overall, there were too many unknowns at this point considering they are very happy with our current structure. We actually already act as a regional MLS in that we have three associations that participate in our shared database.

“It is my understanding that the other seven associations have decided to move forward with the formation of the Southern Missouri Regional MLS.”

The real estate picture is a bit different in the Joplin area in the wake of an EF5 tornado that devastated the city in 2011.

“Our numbers have fallen a little, but that was completely expected with the housing boom we saw after the tornado,” Annis said, noting agent numbers were flat the last two years at about 510. “Our average home sold price has risen within the last year from $103,680 in October 2012 to $112,606 in October 2013. June hit a 12-month high with the average home sold price of $129,805.”