SPRINGFIELD (February 25, 2008) The median single-family home sale price increased while unit home sales decreased in the Capital Area during January 2008, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of January 2008, the median home sale price (for all single-family homes and condominiums) was $100,000, an increase of 7.5 percent over the $93,000 January 2007 price. “While other markets continue to experience price corrections following a prolonged period of rapid growth we continue to be blessed with steady gains in the median home sale price,” said REALTOR® Phil Chiles, president of the Capital Area Association of REALTORS®. The median is a typical market price where half the homes sold for more, half sold for less.

Home sales in the Capital Area were down 27.5 percent in January of 2008 with 171 homes sold, compared to 236 homes sold in January of 2007. “Although down considerably from January of 2007 home sales matched the January 2004 level which was decent. The extreme weather conditions we have experienced this winter have been a contributing factor in the downturn. Additionally, this drop in sales is amplified by the fact that January of 2007 was the best January on record,” said Chiles.

“We continue to have an imbalance between supply and demand. During the past few years supply has risen dramatically while demand has remained steady. Listing inventory peaked in August of 2007 with 2,020 listings. Although the current listing count (as of February 20th) had dipped to 1,662, inventory remains at a record level for this time of year. Seller’s priced in the $120,000 to $160,000 price range are in a good position. The greatest demand is in these price points with approximately 27 percent of all sales taking place in this price range,” said Chiles. Inventory levels continue to hover at about a five month supply which compares favorably to national inventory levels. “In light of our current inventory levels it is no surprise that it is taking longer for homes to sell,” said Chiles. During January of 2008 the cumulative days on market was 110, up from 93 the prior January.

“In spite of the overall soft January for home sales new construction sales were impressive resulting in a 20 percent increase over January of 2007,” said Chiles. In January 2008 there were 18 new construction sales, three more than the prior January. The new construction home sale price in January of 2008 was $217,200, reflecting a decrease of 9.1 percent from the prior January. There is currently a 6.8 month supply of new homes on the market at the 2007 sales pace.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.76 percent in January 2008, down nearly half a percent from the 6.22 average rate during January of 2007.

Chiles said that although 2008 home sales are off to a slow start REALTORS are reporting that they are busy which bodes well for an active Spring. “With an ample supply of homes available, our affordable price points and mortgage rates at near historical lows people are beginning to realize what an ideal time it is to buy a home,” 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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