SPRINGFIELD (February 25, 2009) The median single-family home sale price decreased while unit home sales also decreased in the Capital Area during January 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of January 2009, the median home sale price (for all single-family homes and condominiums) was $94,500, a decrease of 5.5 percent from the $100,000 January 2008 price. 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 6.9 percent in January of 2009 with 162 homes sold, compared to 174 homes sold in January of 2008.

“This dip in the median home sale price during January of 2009 appears to be a continuation of the softening in the median sale price that we began to see start developing midway through 2008,” said REALTOR Nancy Long, ABR, CRS, GRI, president of the Capital Area Association of REALTORS. “That being said it is helpful to keep things in perspective and to realize that the January median price was actually the third highest median sale price on record for January in the Capital Area”, said Long.

“With 1,753 active homes on the market at the end of January 2008 we were down about 1 percent from the same time a year ago, however, we are still at historically high levels and we continue to have an imbalance between supply and demand. Anytime you have a situation where supply rises and demand subsides like we have had here lately it is not surprising that at some point you begin to see prices being affected,” said Long. However, Long cautions buyers and encourages them to do their homework before making offers. “I am beginning to get the sense that some buyers out there think that they can ‘steal’ a property away and that’s simply not the case. While there are good deals to be had in most instances the list price of a home has already factored in the current market situations.” This is one reason why Long encourages buyers to seek professional advice.

According to Long, inventory levels are tracking at about a 6.1 month supply which is about where its been for the last several months now. During January of 2009 the cumulative days on market was 118, up from 110 the prior January.

Long attributes the market’s current lamase to three things primarily. “Not only did the extreme cold play a factor in January but I think that the uncertainty with the economy and anticipation about what was going to come out of the stimulus legislation had people sitting on the sidelines with a wait and see attitude. Now, thanks to the United States Government qualified first-time homebuyers who purchase a primary residence between January 1, 2009 and December 1, 2009 can receive up to an $8,000 tax credit,” said Long. “We are very hopeful that this new tax credit which does NOT have to be repaid will stimulate further activity in the real estate market,” said Long.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.05 percent in January 2009, down seven basis points from the 5.76 average rate during January of 2008.

Long said that she is optimistic as about the coming months as many REALTORS are reporting that they are becoming quite busy. “With a great selection of homes available, affordable price points, mortgage rates at near historical lows and a very attractive $8,000 first-time homebuyer tax credit homeownership is very appealing,” said Long.

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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