SPRINGFIELD (August 11, 2010) The median single-family home sale price and unit home sales increased in the Capital Area during the second 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 second quarter of 2010 was $115,000, reflecting a 4.5 percent increase over the second quarter 2009 price. The year-to-date median home sale price through June of 2010 came in at $111,000, reflecting a $2,000 increase of the $109,000 priced during the same period in 2009. The median is a typical market price where half the homes sold for more, half sold for less.

According to CAAR president-elect, Terry Nuding, ABR, CRS, GRI, “although the second quarter median home sale price of $115,000 reflected a record high for any quarter, you might put an asterisk next to it. While it is impossible to gauge the full impact it is evident that the homebuyer tax credit probably put some pressure on prices,” said Nuding.

Total home sales equaled 1,218 units during the second quarter of 2010, reflecting a 21.6 percent increase over the second quarter of 2009. The year-to-date unit sales through July of 2010 amounted to 1,911, reflecting a 15.7 percent increase over the 1,651 sales during the same period in 2009.

The sale of new construction homes also increased during the second quarter. During the second quarter of 2010 a total of 60 newly constructed homes were reported sold through the Capital Area Multiple Information Service as as compared to 52 during the same period in 2009. The median sale price of newly constructed homes during the second quarter of 2010 was $230,800 as compared to $231,000 during the same period in 2009.

The number of new listings taken during the second quarter of 2010 were nearly unchanged from the prior year with 1,431 new listings taken in 2010 as compared to 1,440 in 2009. As of August 1st there 1,748 homes for sale in the Capital Area reflecting a 5.5 month supply of inventory. The inventory at the end of July 2010 amounted to 1,571 homes for sale, reflecting a 3.9 percent decrease from the July 2009 inventory level.

The average cumulative days on market (CDOM) for homes that have sold is perhaps the single best indicator of the true market condition. The second quarter of 2010 shows a CDOM of 91 reflecting a decrease of 19 days from the 110 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 4.9 percent during the second quarter of this year, slightly better than the 5.0 percent rate in the second quarter of 2009.

“Through the first half of 2010 the fundamentals of our local housing market have been very sound. Home sales have trended up, prices continue to demonstrate modest increases, days on market have declined notably, inventory is holding steady at about 5 to 5 ½ months and mortgage rates have dipped to near fifty-year lows. However, the fly in the ointment is the sale pending numbers which are a pre-cursor to future sales. For June of 2010 sale pendings were at 287, reflecting a decrease of 5.1 percent from the prior June while July sale pendings were at 341, reflecting a decrease of 29.6 percent from the 442 sale pendings from the prior July,” said Nuding.
According to Nuding, homebuyers who missed out on the tax credit probably have an even better opportunity today to secure that dream home. “With historic low mortgage rates, less competition from buyers and an ample supply of homes to choose from the time is right for hopeful buyers” said Nuding.

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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