Home sales sky-rocket as interest rates slowly increase

By Beau Ebenezer

June 6, 2013 Updated Jun 6, 2013 at 10:57 PM CDT

BLOOMINGTON Ill -- For Twin City realty companies, the phone has been ringing off the hook and there are open houses left and right.

150 more homes have been sold this year in Bloomington-Normal compared to last year at this time.

"It's really consumer confidence," said Elect President of the Bloomington Normal Association of Realtors, Chick Montgomerie. "Low interests rates have helped, and we have had historic low interest rates now for a couple years. We're still at 4% or less, but as they increase, we think people need to take advantage of where they are now."

It seems that is exactly what clients of Coldwell Banker, Heart of America Realtors are doing.

The realty company sold more than 250 units this year.

That is 50 more than last year and the best number they have seen since 2004.

Realtors said the only thing that could really upset the housing market is the decrease in inventory.

For those who are on the bubble of deciding whether or not to sell their home, realtors added that there is no better time than now.

"If we don't get new houses onto the market for these buyers that are wanting to buy a house, prices could spike, which really isn't good for the overall life of this real estate recovery," said Coldwell Banker Broker, Paul Pless.

However, for one long-time Normal resident, the selling process isn't going as quickly as he had hoped.

"As far as a good time to sell, they tell me it is a good time to sell," said Terry Wendling. "We've been on the market just over a month. It's probably been between a month and six weeks. We've been having a steady onslaught of people inquiring about the home."

Prices of homes have increased slightly, while there are about 500 fewer houses on the market than last year.

Realtors said that is not effecting the record months they have experienced so far this year.

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