SPRINGFIELD (January 25, 2010). The median single-family home sale price and the number of home sales increased in the Capital Area during December 2009, according to figures from the Capital Area Association of REALTORS ® (CAAR) Multiple Information Service.

For the month of December 2009, the median home sale price (for all single-family homes and condominiums) was $112,000, revealing an increase of 30.2 percent from the $86,000 December 2008 price. The median home sale price year-to-date through December of 2009 yielded $109,000, reflecting a 4.8 percent increase from the $104,000 median price during the same period in 2008. The median home sale price demonstrated great resiliency throughout 2009 with gains in the year-over-year price during ten of the twelve months. The median is a typical market price where half the homes sold for more, half sold for less.

Home sales in the Capital Area during the month of December amounted to 241 units, reflecting an increase of 21.1 percent from the 199 home sales recorded in December of 2008. The year finished strong in December with the seventh consecutive month of year-over-year unit sales increases. Year-to-date home sales through December of 2009 revealed 3,716 unit sales, up 6.5 percent from the 3,488 units sold during the same period in 2008.

According to REALTOR Linda Nelson, GRI, GREEN, e-PRO, SRF, president of CAAR, a 21.1 percent increase in December sales was a welcome surprise, especially on the heels of a 78.9 percent increase in home sales during November. “December was more active than we thought it would be. Our assumption was that the first-time homebuyer tax credit, which was poised to end at the end of November, may have had the effect of reducing those home sales in the pipeline for December,” said Nelson.

The inventory of homes listed for sale at the end of December 2009 was 1,324, reflecting a 27.0 percent decrease from the 1,813 listings during December of 2008, and was at its lowest point in over five years. Current inventory levels stand at 1,418 homes which reflects a 4.6 month supply at the average monthly sales pace for the past twelve months.

“The number of sales pending at the end of December was 204, reflecting a 3.8 percent decrease from the 212 sales pending at the same time in 2008. The average cumulative days on market in December of 2009 was 92 days reflecting a decrease of 8 days from the same month in 2008. The average cumulative days on market for year-to-date through December of 2009 remained unchanged from 2008 at 106 days.

New construction sales ended the year on a positive note with 11 sales in December of 2009 as compared to 6 sales during December of 2008. For year-to-date through December there were 204 new construction sales recorded, reflecting a decline of 11 sales from the same period in 2008. The median new construction sale price for December of 2009 was $241,500 as compared to $197,300 for December of 2008. For year-to-date through December the median new construction home sale price was $222,300, reflecting a 6.8 percent increase over the 2008 price and the highest year end price on record.

Nelson said that after a slow start to the year the housing market really began to pick up steam toward the middle part of the year as first-time buyers eyeing the tax credit became serious about their intentions. “With an extension and expansion of the tax credit there is now an opportunity for eligible move-up buyers and empty nesters to also take advantage of the tax credit that ends April 30 th . With the relatively tight inventory situation and the April 30 th deadline for the tax credit my advice to prospective buyers is to start the process today by contacting a professional.“

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.93 percent in December 2009, down from the 5.29 average rate during December of 2008.

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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