SPRINGFIELD (November 10, 2005) Strong housing market fundamentals propelled sales of existing-single family homes to the second highest pace on record in the third quarter of 2005, according to the Capital Area Association of Realtors® (CAAR). Figures released today by CAAR reveal that 1,175 existing single-family home sales were recorded during the third quarter of 2005. This reflects a 1.8 percent decrease from the 1,197 record-setting sales pace set during the 2004 third quarter.

CAAR President Cheryl Dambacher said that home sales remain in historic territory. “The level of existing-home sales during the third quarter of 2005 was the second highest on record,” she said. “This is a big number any way you slice it, and housing is continuing to stimulate the local economy.

Dambacher said that housing remains a good investment. “It's clear that many people find it is an excellent time to buy a home” she said. “American's view housing as a solid long-term investment, and they're taking advantage of favorable conditions to improve their current lifestyle as well as their long term financial interests.

Year-to-date through September of 2005 there have been 3,224 sales of existing homes, reflecting a 2.5 percent increase over the same period of 2004. Year-to-date dollar volume of existing-single family homes of $383.3 million reflects a 9.4 percent increase.

The Capital area median existing home sale price for the third quarter of 2005 was $107,000, nearly 11.5 percent above the previous year's third quarter median price of $96,000. The median is the midpoint in the price range; half the homes sold cost more, half cost less. Total dollar volume of all single-family homes sold during the third quarter of 2005 was $143.9 million, reflecting a 5.9 percent over the same period of last year.

Third quarter 2005 sales of all property classes combined (i.e., commercial, industrial, farm, residential, vacant land) reveal sales of 1289, reflecting a decrease of 3.1 percent from the 1,330 sales reported during the same period of 2004. Total dollar volume of all real estate sold during the third quarter of 2005 was $157.4 million revealing an increase of 6.7 percent increase from the $147.5 million sold during the same period last year.

Dambacher said that at the beginning of the year it was thought that 2005 would be the second best total for existing-home sales, but by mid-year it was apparent that another record was in the works. Our sales projections for this year have moved even higher, Dambacher said. “Short-term movement is very strong, and our pending home sales are up. In addition, we may be seeing some ‘fence jumping' from home buyers who are getting into the market before interest rates move higher.”

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.8 percent during the third quarter of 2005, nearly identical to the 5.9 percent rate for the same period of 2004.

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.

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