SPRINGFIELD (March 24, 2008) The median single-family home sale price increased as did unit home sales in the Capital Area during February 2008, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

Home sales in the Capital Area were up 2.1 percent in February of 2008 with 241 homes sold, compared to 236 homes sold in February of 2007. “Our February home sales activity was a bit remarkable considering the extreme weather conditions we have experienced this winter,” said REALTOR Phil Chiles, president of the Capital Area Association of REALTORS®.

For the month of February 2008, the median home sale price (for all single-family homes and condominiums) was $98,000, an increase of 14.0 percent over the $86,000 February 2007 price. The median is a typical market price where half the homes sold for more, half sold for less.

“The Capital Area housing market continues to shine in comparison while the state and national housing market struggles to regain its footing. Statewide single family home sales for February reveal double declines of over 20 percent while the median sale price was off by more than 5 percent. Right now the Capital Area housing market is the envy of many,” said Chiles.

“With a substantial number of homes available for sale supply continues to outpace demand. As of March 21st there were 1,703 homes for sale in the Capital Area. After experiencing a seasonal dip in inventory early this year our inventory is slowly beginning to trend back upward from a high of 2,020 last August,” said Chiles. “A recurring theme in all of this the fact that the amount of time that it takes to sell a home continues to increase. During February of 2008 the cumulative days on market was 118, up from 104 the prior February.” said Chiles.

“People are buying and homes are selling, however, with high inventory levels buyers are more selective and are able to negotiate more favorable price and/or terms. The message for sellers is to make sure that your home is priced competitively. If a home is overpriced from the start it will lead to a protracted marketing period and most likely cost the seller more money in the end. The message for buyers is to recognize when a home is priced properly and act on it. To assist consumers in this important process we recommend that they consult a professional,” said Chiles.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.92 percent in February 2008, down from the 6.29 average rate during February of 2007. “With the recent dip in mortgage rates and a large selection of affordable homes for sale, now is an ideal time for first-time buyers as well as trade-up buyers,” said Chiles.

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.

Access related statistical reports here.

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