SPRINGFIELD (September 23, 2009). The median single-family home sale price decreased while unit sales increased in the Capital Area during August 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

Home sales in the Capital Area during the month of August amounted to 370 units, reflecting an increase of 6.9 percent over August of 2008. Year-to-date home sales through August of 2009 revealed 2,405 unit sales, down 4.5 percent from year-to-date through August of 2008.

For the month of August 2009, the median home sale price (for all single-family homes and condominiums) was $110,000, reflecting a decrease of 2.1 percent from the $112,300 August 2008 median price. The median sale price for year-to-date through August 2009 was $110,000, reflecting an increase of 4.5 percent over the same period in 2008. The median is a typical market price where half the homes sold for more, half sold for less.

According to CAAR president, Nancy Long, ABR, CRS, GRI, “it is clear that our market is experiencing the full effects of ideal homebuying conditions, the pent-up demand for housing and the rapidly approaching deadline for the $8,000 first-time homebuyer tax credit,” said Long.

The inventory of homes for sale at the end of August was 1,626, reflecting a 19.1 percent decrease from the 2,081 homes for sale during the same time last year. Current inventory levels stand at 1,594 homes, which continues at a four year low. The current inventory level reflects about a 5.6 month supply at the average monthly sales pace during the past twelve months.

The number of sales pending at the end of August was 399, reflecting a 3.4 percent increase over the 386 sales pending at the same time in 2008. The average cumulative days on market in August of 2009 was 94 days reflecting a decrease of two days from the same month in 2008 and an impressive drop of 34 days from the cumulative days on market during the previous month of July. The average cumulative days on market for year-to-date through August of 2009 was 114 days, reflecting an increase of 7 days from the same period in 2008.

“Right now the $140,000-199,999 range is the fastest moving price range. However, one of the most improved price points is in the $200,000-299,999 range. In July of this year homes from $200,000-249,999 took 215 days to sell whereas in August that number dropped to 98 days. Likewise, during July of this year, homes in the $250,000-299,000 range were taking 230 days to sell while that number in August plummeted to 84 days, said Long.

“REALTORS are urging Congress to extend the tax credit beyond the fast-approaching deadline of December 1 to enable more people to take advantage of it and to help sustain the housing recovery. While current market indicators are very good we shouldn’t be fooled as to why. Clearly the tax credit has had an impact on this ongoing recovery and I would hate to see it end abruptly and risk the potential of a double-dip recession”, said Long.

“For those first-time homebuyers that plan to take advantage of the first-time homebuyer tax credit time is truly of the essence. If these folks do not yet have a home under contract this needs to be done by mid-October to allow plenty of time for the appraisal and inspection process. It should be emphasized that the transaction must close by no later than November 30th in order to qualify,” said Long.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.19 percent in August 2009, down from the 6.48 average rate during August of 2008.

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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