SPRINGFIELD (July 26, 2006) Sales of existing single-family homes for the second quarter of 2006 were the second best on record for the Capital area’s housing market surpassing the expectations of many, according to the Capital Area Association of REALTORS®.

The 1,252 existing single family home sales reported during the second quarter of 2006 were only slightly below the prior year’s record-setting second quarter of 1,266 homes sold.

Cheryl Dambacher, CAAR’s president, said that while current listing inventory is at unusually high levels to compensate for this overall home sales in the Capital area have been tracking at historical highs. For the first six months of 2006 there were 2,139 existing single family home sales, reflecting an increase of 3.9 percent over the 2,058 home sales during the first six months of 2005. “There are currently 1,747 existing single family homes for sale in our marketplace reflecting a five month supply of homes at the current sales pace. Although these inventory levels appear high the supply and demand locally is a bit more balanced than it is nationally where there is a 6.8 month supply of inventory,” said Dambacher.

“Homes up to $150,000 seem to be moving the quickest right now while those
above $250,000 are generally taking longer to move. In the slower price ranges Sellers have recognized that they need to be more competitive in their pricing or with seller concessions given the rise in housing inventories,” said Dambacher.

The median sale price of a home during the second quarter of 2006 was $107,000 reflecting a generous increase of 3.9 percent over the second quarter 2005 median sale price of $103,000. Total home sales volume for the second quarter of 2006 reached $259 million reflecting a 3.3 percent increase over the previous year’s volume of $241 million.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.6 percent during the second quarter of 2006, reflecting a noticeable increase over the 5.7 percent rate at this time in 2005. “Although mortgage interest rates remain historically low, the uptrend in interest rates this year is affecting those buyers who are at the margins of affordability,” said Dambacher”

Second quarter 2006 sales of all property classes combined (i.e., commercial, industrial, farm, residential, vacant land) reveal sales of 2,369 properties, up 2.8 percent over the 2,304 sales reported during the same period of 2005. Total dollar volume of all real estate sold increased 6.9 percent with $291 million sold during the second quarter of 2006 as compared to $272 million during the same period last year.

The Capital Area Association of REALTORS® is the Voice for Real Estate in the Capital Area representing more than 700 members involved in all aspects of the real estate industry. The Capital Area’s Resource for Real Estate Information can be found at www.SeeHouses.com.