SPRINGFIELD (February 11, 2009) According to the Capital Area Association of REALTORS (CAAR) sales of existing-homes – including single-family, townhomes, condominiums and coops amounted to 692 during the fourth quarter of 2008, reflecting a 16.5 percent decline from the 2007 fourth quarter home sales figure of 829. For 2008 there were 3,488 home sales in the Capital Area reflecting a decline of 13.3 percent from the 4,024 sales recorded in 2007.

The Capital area median existing single-family home sale price for the fourth quarter of 2008 was $95,000, reflecting a 6.9 percent decline from the prior year’s fourth quarter price of $102,000. The median price for 2008 was $104,000, reflecting a marginal decrease of $500 from the 2007 price of $104,500. The median is the midpoint in the price range; half the homes sold cost more, half cost less.

CAAR President Nancy Long, ABR, CRS, GRI, said that while our local housing market is somewhat insulated the psyche of the national economy continues to hamper us locally. “REALTORS support a the proposed $15,000 homebuyer’s tax credit and its expansion to include all homebuyers, not just first timers. The elimination of the repayment feature and the credit extension through December 2009 will have a meaningful impact for home buyers,” said Long.

CAAR also released its year-end 2008 community profile. Of the seventeen communities profiled the Auburn area, with 76 home sales, was the only area to register an increase in unit sales in 2008. The city of Springfield's 1,840 home sales in 2008 reflect a 14.9 percent decrease from 2007. The Sherman and Williamsville area’s 82 home sales reflect a 19.6 percent decrease while the Rochester area’s 87 home sales reflect a 6.5 percent decrease from 2007. The Chatham area’s 266 home sales reflect a 10.4 percent decrease from 2007.

Elsewhere, in Menard County the Petersburg area’s 68 home sales reflect a 20.9 percent decrease from 2007. In Morgan County the Jacksonville area’s 272 home sales reflect a 17.1 percent decrease from 2007. In Christian County the Taylorville area’s 187 home sales reflect a 2.1 percent decrease from 2007.

The city of Springfield's 2008 median sale price of $100,000 for 2008 reflects a 2.0 percent decrease from 2007. The Sherman and Williamsville area’s median price of $179,900 reflects a 5.8 percent increase while the Rochester area’s median price of $170,000 remained unchanged from 2007. The Chatham area’s 2008 median price of $158,500 reflects a 3.1 percent decrease from the prior year.

Elsewhere, in Menard County the Petersburg median price of $128,800 reflects a 19.8 percent increase from the median price in 2007. In Morgan County the Jacksonville area median price of $90,800 reflects a 3.8 percent decrease from the prior year. In Christian County the Taylorville median price of $72,500 reflects a 9.3 percent decrease from the prior year.

Total dollar volume of CAAR home sales in 2008 was $433.1 million refle cting a 12.8 percent decrease from the 496.6 million in 2007. The typical size of a home sold in 2008 was identical to 2007 at 1,600 square feet .

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.86 percent during the 4Q of 2008, down slightly from the 6.23 average rate during the 4Q of 2007. For 2008 this rate was 6.03 percent which was slightly lower than the 6.34 percent the prior year.

We also support the reinstatement of downpayment assistance programs that would help spur home sales activity, said Long. “Additionally, Federal ‘rescue’ dollars should be directed to buy down mortgage rates -- a half million additional homes could be sold if interest rates were lowered by just 1 percentage point. “Additionally, banks must find ways to help prevent foreclosures and unclog the credit market. These steps are necessary to stabilize housing and ensure that home values do not become artificially low, exacerbating today’s problems,” said Long.

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.

###