SPRINGFIELD (August 11, 2009) The median single-family home sale price increased while home sales decreased in the Capital Area during the second quarter of 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service

The median sale price of existing-home sales - including single-family, townhomes and condominiums for the second quarter of 2009 was $110,000, reflecting an all-time high, according to the Capital Area Association of REALTORS® (CAAR). Total home sales equaled 1,002 units during the second quarter of 2009, reflecting a 8.2 percent decrease from the second quarter of 2008.

“Although overall sales are down we are very encouraged by the strong finish to the second quarter which, together with sale pending figures, suggest that this trend will continue,” said CAAR president, Nancy Long, ABR, CRS, GRI,

New construction sales during the first six months of 2009 demonstrated an increase in price along with a decrease in units. For year-to-date through June there were 102 new construction sales as compared to 130 during the same time in 2008. The median sale price for year-to-date through June of 2009 was $217,500 as compared to $209,800 during the same time in 2008. “The increase in the sale price for new construction is a positive sign and suggests that we are working off the excess inventory that was out there,” said Long.

The number of new listings taken during the second quarter of 2009 was 1,252,
reflecting a 32.4 percent decrease from the number of new listings taken during the same period in 2008. As of August 10th there were 1,650 homes for sale in the Capital Area reflecting a 5.9 month supply of inventory. Current inventory levels are down about 21 percent from this time last year and are at their lowest levels since July of 2005.

The second quarter of 2009 shows an average cumulative days on market (CDOM) of 109 reflecting a negligible increase of 1 day from the 108 CDOM during the same time last year. The year-to-date CDOM through June of 2009 is 115 days as compared to 112 days during the same time in 2008. “CDOM is one of the market indicators that we watch very closely. The amount of time that a home takes to sell seems to be moderating somewhat which is a positive indicator,” said Long.

“The clock is now ticking in earnest for those first-time home buyers that are looking to take advantage of the $8,000 first-time home buyer tax credit. To take advantage of this $8,000 tax credit qualified first-time buyers must have their home purchased before Dec. 1, 2009 which means they need to be under contract by mid-October. Based on this sense of urgency, I suspect we’ll see a great deal of competition for homes in the entry level price ranges," said Long.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.3 percent during the second quarter of this year, down significantly from the 6.09 percent rate in the second quarter of 2008.

“Nearly every notable market indicator that we track is pointing upward. Home sales are trending up, prices continue to demonstrate modest increases, days on market has moderated, inventory is down and mortgage rates are still very attractive. These positive factors will translate into increased sales in the coming months,” said Long

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 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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