SPRINGFIELD (November 18, 2008) Home sales as well as the median home sale price in the Capital Area both experienced modest declines during the third quarter of 2008 as compared to the same period in 2007, according to the Capital Area Association of REALTORS (CAAR).

For the third quarter of 2008, total home sales (which include single-family homes and condominiums reported sold through the CAAR Multiple Information Service) amounted to 1,035, reflecting a 7.4 percent decrease from the 1,118 sales reported during the third quarter of 2007. Year-to-date home sales totaled 2,796 in 2007, down 14.2 percent from the 3,195 homes sold during January through September of 2007.

“The third quarter ended on a very positive note with an increase in home sales during September of this year as compared to 2007,” said CAAR President Nancy Long, ABR, CRS, GRI. “However, September sales were based on transactions entered into before the recent melt-down in the financial markets. As a result, we anticipate that the difficulties in the financial markets will have a dampening effect on the housing market in the near term,” said Long.

The third quarter 2008 median home sale price was $105,000, reflecting a modest decrease of 2.1 percent from the $107,300 median sale price during the third quarter of 2007. The year-to-date Capital Area median home sale price was $105,000 in 2008, unchanged from the $105,000 price during January through September of 2007.

With 1,903 active listings on the market inventory has declined slightly in recent weeks it is nearly unchanged from the 2,022 homes for sale on October 31, 2007. At the current monthly sales pace there is approximately a 6.3 month supply of homes available for sale in the Capital Area.

“While we are in a challenging real estate market, it’s important to recognize that there are compelling reasons to buy. Whether you are a first-time homebuyer or move-up buyer, the current situation provides a very attractive proposition for homebuyers. Housing stock is plentiful, low mortgage interest rates are available for those with good credit histories and we live in one of the most affordable communities in the state,” said Long. To underscore this last point Long mentioned that the Capital Area third quarter 2007 median home sale price of $105,000 is significantly lower than the median statewide Illinois price of $190,000. Long went on to state that the average cumulative days on market for existing-single family homes was 96 compared to 84 during the third quarter of 2007.

“It is a challenging time for both buyers and sellers. In addition to affordable financing, correct pricing and professional expertise are keys to success in the market today. Consumers need REALTORS more than ever to help them navigate the transaction process in these uncertain times,” said Long.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.32 percent during the third quarter of 2008, slightly lower than the 6.55 percent rate during the third quarter of 2007.

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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