SPRINGFIELD (November 17, 2006) In spite of a slight 3Q dip home sales in the Capital Area continue to remain ahead of the record level set in 2005, according to the Capital Area Association of REALTORS (CAAR) Multiple Information Serivce. Year-to-date home sales totaled 3,298 in 2006, up 1.8 percent over the 3,239 homes sold during January through September of 2005. For the 3Q, total home sales (which include single-family and condominiums) were down 3.8 percent to 1,135 homes sold, compared to 1,180 sales during the 3Q of 2005.

The year-to-date Capital Area median home sale price was $102,000 in 2006, up 1.0 percent over the $101,000 price during January through September of 2005. The 3Q median home sale price was $106,000 reflecting a 0.9 percent decrease from the $107,000 median sale price during the 3Q of 2005.

Inventory is falling with 1812 homes currently for sale the Capital Area reflecting a 5.1 month supply. “While the supply of homes has decreased slightly in recent weeks inventory levels are generally still high over where they were a year ago helping to explain why homes continue to move at a slower pace than a year ago,” said Steward. The average days on market for existing-single family homes was 79 compared to 72 during the 3Q of 2005.

“Illustrative of current market conditions we are beginning to see some movement by sellers to become more competitive with pricing which is great news for consumers who are beginning to notice that conditions are ideal for them,” said Steward.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.56 percent during the 3Q of 2006, down 0.20 points from the 6.76 average rate during the 3Q of 2005. “Interest rates are comparable to 40-year lows and inventories are higher than they’ve been in decades. Consumers have exceptional choice but these conditions will not last as conditions are improving with an eye toward a more balanced market between buyers and sellers th is spring,” said Steward.

“Based on preliminary October home sales and current sale pending numbers we predict a very strong 4Q finish to the Capital Area’s housing market. All indicators point toward a record-breaking year for home sales in 2006,” said Steward.

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.

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