SPRINGFIELD (August 21, 2009). The median single-family home sale price as well as unit sales in the Capital Area both increased during July 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

Home sales in the Capital Area during the month of July amounted to 384 units, reflecting an increase of 3.8 percent over July of 2008. Year-to-date home sales through July of 2009 revealed 2,035 unit sales, down 4.5 percent from year-to-date through July of 2008.

For the month of July 2009, the median home sale price (for all single-family homes and condominiums) was $115,300, reflecting an increase of 11.1 percent over the $103,800 July 2008 median price. This also reflects a record high price for the month of July. The median sale price for year-to-date through July 2009 was $110,000, reflecting an increase of 4.5 percent over 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 president, Nancy Long, ABR, CRS, GRI, “what we are seeing is a housing market that is beginning to respond. July home sales represent the third month this year where sales increased while July home sale prices represent the fifth month this year where we experienced an increase in the median home sale price. These are very encouraging trends,” said Long.

“We are seeing some positive trends among new construction as well,” said Long. The 21 new home sales during the month of July reflected an increase of 3 sales over the same period in 2008 while the median new home sale price of $238,000 for July increased dramatically over the $191,700 price during the same period in 2008.

“Capital Area REALTORS are extremely busy right now counseling first-time buyers about the process of buying a home and helping them to find that perfect home in time to be able to take advantage of the $8,000 first-time homebuyer tax credit. I would urge any first-time buyer to be under contract by the end of September to ensure a closing before the December 1st tax credit deadline,” said Long.

The inventory of homes for sale at the end of July was 1,641, reflecting an 21.1 percent decrease from the 2,082 homes for sale during the same time last year. Current inventory levels stand at 1,585 homes, which is the lowest level since April of 2005. The current inventory level reflects about a 5.6 month supply at the average monthly sales pace during the past twelve months.

The number of sales pending at the end of July was 442, reflecting an encouraging 12.1 percent increase over the 394 sales pending at the same time in 2008. The average cumulative days on market in July of 2009 was 128 days. This figure increased substantially from the 92 days during July of 2008. The average cumulative days on market for year-to-date through July of 2009 was 118 days, reflecting an increase of 10 days from the same period in 2008. “The increase in time on market and sales pending is, in large part, a reflection of the stringent loan underwriting guidelines which have resulted in an increase in the amount of time it takes to get appraisals conducted and ultimately loans approved”, said Long.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.22 percent in July 2009, down from the 6.43 average rate during July of 2008.

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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