Springfield, Illinois, birthplace of Abraham Lincoln, has jobs and affordability, an unbeatable combination for homebuyers, say local Realtors.

"Springfield is the capitol of Illinois and was the home of Abraham Lincoln," explains Realtor Rick Hanselman. "There are many interesting Lincoln sites throughout the city and surrounding areas including the Lincoln Presidential Library and the soon-to-open Lincoln Museum. As the state capital, the largest employer is the government, making Springfield a virtually recession-proof city.

"As of the end of the third quarter," Hanselman continues, "existing-home sales are dead-even with the highest pace on record. Low mortgage rates should continue to keep home sales strong in the months to come. As first-time homebuyers continue to enter the market, home sales should continue to climb over the next few years. However since we are in the midst of the holidays, home sales have slowed somewhat. This accounts for the slight downward trend in prices even though the third quarter median price was up nearly 5.2 percent."

Says Realtor Barb Krueger, "This area offers the best of both worlds--a great big small town or a small big town, with many bedroom communities to choose from also."

About the market, Krueger says, "Last year, 2003, broke all-time sales records for homes sold in the Capital Area Association of Realtors - a win/win for both buyers and sellers. They are predicting 2004 to be the second-best year on record. Add to that the fact that Springfield ranks number four in the nation for home affordability! There has never been a better time to buy or sell! The average sales price in this area is $116,000 and currently we are up in listings compared to the same time last year which means there is more to choose from in some price ranges for the buyers. For the sellers, it means we need to be priced accurately in order to sell in a longer period of time on the market. Currently, our average days on the market is increasing."

"The Springfield market has softened a little due to the increased supply and lack of buyers," says Realtor Steven Dove. "Back to school, interest rates and the elections might be some of the factors. The slight rise in rates have pushed a number of buyers to move forward with their home purchases but, there will be another push probably later this fall.

Dove remains optimistic. "Springfield, IL is a relatively recession-proof city. The state is the number one employer and the medical community is number two. Since Springfield is the state capital, there is a wide diversity in the demographics as well as the culture. Springfield is known for it's outstanding medical facilities. The medical community in Springfield is number one in the state. Springfield has seen a large growth in new construction and the historic community has been impressive as well."

He adds, "Springfield is the hub of the Midwest with over 70 percent of the Midwest population within six hours of the city. The following major Midwest cities are within driving distance: Chicago,IL; St.Louis,MO; Indianapolis,IN; Milwaukee,WI; Nashville,TN; Kansas City, MO; and Columbus,OH. Right now the inventory for the Springfield market compared to past years inventory is at an all-time low. This is the first time in over seven years where the listing inventory has been below 1000 homes available. As the season progresses and the weather changes we will see an increase in inventory, but, I believe it will not be anywhere near what we have seen in the past. The interest rates for the last several years have been at 40-50 year all time lows, which means most homeowners or potential homeowners have already refinanced or purchased their homes already. Leaving a small pool of sellers and a large group of buyers (mainly first-timers and relocations) vying for the current available "leftover" listings."

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Published: November 24, 2004

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