SPRINGFIELD (February 13, 2008) According to the Capital Area Association of REALTORS (CAAR) sales of existing-homes – including single-family, townhomes, condominiums and coops amounted to 824 during the fourth quarter of 2007, reflecting a modest decline of 2.8 percent from the 2006 fourth quarter home sales figure of 848. For 2007 there were 4,013 home sales in the Capital Area reflecting a slight decline of 4.1 percent from the 4,176 sales recorded in 2006.

The Capital area median existing single-family home sale price for the fourth quarter of 2007 was $102,500, reflecting a healthy 7.9 percent increase from the prior year’s fourth quarter price of $95,000. The median price for 2007 was $104,500, reflecting an increase of 5.6 percent over the 2006 price of $99,000. The median is the midpoint in the price range; half the homes sold cost more, half cost less.

CAAR President Phil Chiles, ABR, GRI, said that overall we have to be very pleased with the local housing market in 2007. “Even after posting a healthy gain in the median price of a home in 2007 area homes still cost half of what a typical Illinois home costs and we remain one of the most affordable housing markets in the nation. In 2007 we experienced the third best year on record for home sales. Listing inventory in 2007 peaked in August with 2,020 listings but today we are at a more manageable level with 1,651 listings. Although we still have a historically high number of homes for sale we see signs that inventory levels may be beginning to moderate some,” said Chiles.

CAAR also released its year-end 2007 community profile. Although unit sales were down slightly for the year some communities such as Chatham, Rochester and Sherman posted healthy increases in unit sales. Chatham’s 297 sales reflect a 6.4 percent increase over 2006, the Rochester area’s 93 sales reflect a 8.7 percent increase over 2006 and the Sherman area’s 100 sales reflect a 12.5 percent increase over 2006. Springfield’s 2,158 home sales in 2007 reflected a 1.8 percent decrease from the prior year.

Although the city of Springfield's 2007 median sale price was unchanged at $102,000 other communities experienced gains. The Sherman and Williamsville area median price of $170,000 reflects a 13.4 percent increase while the Rochester area’s median price of $170,000 reflects a 20.7 percent. The Riverton area’s 2007 median price of $112,000 reflects a 4.7 percent increase from the prior year. The Chatham area median price of $163,500 for 2007 was down a thousand dollars from the prior year.

Elsewhere, in Menard County the Petersburg median price of $107,500 reflects a 5.7 percent decrease from the median price in 2006. In Morgan County the Jacksonville median price of $97,300 reflects an 13.8 percent increase from the prior year. In Christian County the Taylorville median price of $79,900 reflects a 6.7 percent increase from the prior year.

Total dollar volume of CAAR home sales in 2007 was $494.8 million reflecting a 2.5 percent decrease from the 507.3 million in 2006. The typical size of a home sold in 2007 was 1600 square feet reflecting a slight decrease from 1605 square feet in 2006. The average days on the market for a home in 2007 was 93 days reflecting an increase from 86 days in 2006

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.23 percent during the 4Q of 2007, nearly unchanged from the 6.25 average rate during the 4Q of 2006. For 2007 this rate was 6.34 percent which was slightly lower than the 6.41 percent the prior year.

“Upward, steady, consistent gains in the median home sale price suggests that the move toward homownership in the Capital Area is a wise investment. With an ample supply of homes available, our affordable price points and very attractive mortgage rates now is the time to buy a home,” said Chiles.

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 real estate industry. The Capital Area’s Resource for Real Estate Information can be found at www.SeeHouses.com.

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