SPRINGFIELD (March 23, 2009) The median single-family home sale price increased as did unit home sales increased in the Capital Area from January to February 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

The median home sale price (for all single-family homes and condominiums) for February of 2009 was $100,000, an increase of 1.7 percent over the $98,300 February 2008 price. The year-to-date median sale price through February of 2009 was 96,000, reflecting a decrease of 2.8 percent from 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, total sales were up 22.2 percent in February 2009 to 198 homes compared to 162 homes sold in January 2009; sales were down 18.2 percent from February 2008 sales of 242. Year-to-date homes sales through February of 2009 totaled 360, reflecting a 13.5 percent decrease as compared to the same period in 2008.

“Having experienced some downward pressure on pricing in recent months we are encouraged by the fact that the February median sale price of $100,000 set a record for the month of February. I wouldn’t read too much into this just yet as it remains to be seen whether this signals a trend,” said REALTOR Nancy Long, ABR, CRS, GRI, president of the Capital Area Association of REALTORS.

At the end of February 2009 there were 1,686 active listings, reflecting a 5.2 percent decline from January of 2009. For the month of February 2009 373 new listings were taken, reflecting a 6.3 percent decline from the 398 listings entered into during the same period in 2008. “Active listings for February of 2009 were at their lowest point since February of 2006 and reflect a 5.9 percent month’s supply of inventory. According to the National Association of REALTORS a five to seven month supply suggests a healthy market,” said Long.

“Whether buying or selling given the uncertainty in the marketplace it has never been more important to work with local professionals to properly gauge local neighborhood conditions,” said Long.

“The current market situation presents first-time homebuyers and move up homebuyers with a once in a lifetime opportunity. It has taken fifty years for rates to fall to the levels they are at today. With the marked increase in the supply of money by the federal government the potential for inflation down the road is real and is expected to drive interest rates up. When mortgage rates increase it could be decades before we see them again at today’s levels. Although a move up buyer may not sell at a price the market would have yielded in the run up years that move up buyer will more than make up the difference by trading up. We are very optimistic about the Spring market as sale pending data is trending upward and there continue to be signs of market activity,” said Long.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.13 percent in February 2009, down from the 5.92 average rate during February of 2008. “With the continued low mortgage rates, the first-time homebuyer tax credit of up to $8,000 which does not need to be repaid 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 Long.

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.