SPRINGFIELD (May 7, 2010) The median single-family home sale price dipped while unit home sales increased in the Capital Area during the first quarter of 2010, according to the Capital Area Association of REALTORS®.

The median sale price of existing-home sales (for all single-family homes and condominiums) for the first quarter of 2010 was $102,000, reflecting a 1.9 percent decrease from the first quarter 2009 price. The median is a typical market price where half the homes sold for more, half sold for less. Total home sales equaled 693 units during the first quarter of 2010, reflecting a 6.8 percent increase over the first quarter of 2009.

According to CAAR president, Linda Nelson, GRI, GREEN, e-PRO, SFR, the homebuyer tax credits made available during the first quarter contributed to the increase in sales. “It is hard to know exactly how much activity was stimulated by the tax credits and how much activity would have occurred regardless of the tax credits but certainly the credits made a strong impact,” said Nelson.

While the sale of existing single family homes increased during the first quarter new construction sales lagged behind. During the first quarter 2010 thirty-one newly constructed homes were reported sold through the Capital Area Multiple Information Service as compared to 51 during the same period in 2009. The median sale price of newly constructed homes during the first quarter of 2010 was $195,000 as compared to $205,000 during the same period in 2009.

The number of new listings taken during the first quarter of 2010 were up by 18.0 percent from the number of new listings taken during the same period in 2009. As of May 1st there were 1,629 homes for sale in the Capital Area reflecting a 5.2 month supply of inventory. End of quarter inventory levels were down about 13.6 percent from this same time last year.

The average cumulative days on market (CDOM) for homes that have sold is perhaps the best indicator of the true market condition. The first quarter of 2010 shows a CDOM of 105 reflecting a decrease of 19 days from the 124 CDOM during the same time last year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.0 percent during the first quarter of this year, nearly unchanged from the 5.1 percent rate in the first quarter of 2009.

“We anticipate a strong second quarter for sales as well as buyers entering into contracts in the Spring work to meet the June 30th closing deadline to take advantage of the homebuyer tax credits. While homebuyer credits will spur the market during the first half of 2010 we are optimistic that steady consumer demand for housing and good market fundamentals will maintain this momentum through the balance of the year,” said Nelson.

The Capital Area Association of REALTORS® is the Voice for Real Estate in the Capital Area representing more than 800 members involved in all aspects of the residential and commercial real estate industry. The Capital Area’s Resource for Real Estate Information can be found at www.SeeHouses.com.

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