SPRINGFIELD (July 23, 2009). The median single-family home sale price as well as unit sales in the Capital Area both increased during June 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

Home sales in the Capital Area during the month of June amounted to 392 units, reflecting an increase of 21.4 percent from the prior month of May and an increase of 8.0 percent over June of 2008. Year-to-date home sales through June of 2009 revealed 1,649 unit sales, down 6.4 percent over June of 2008.

According to CAAR president, Nancy Long, ABR, CRS, GRI, “the effects of the first-time homebuyer tax credit is certainly being felt in the June home sales which were the single most active month since May of 2008.”

For the month of June 2009, the median home sale price (for all single-family homes and condominiums) was $120,000, reflecting an increase of 12.1 percent over the $107,000 May 2009 median price and an increase of 4.5 percent over the June of 2008 median price. The median sale price for year-to-date through June 2009 was $109,200, reflecting an increase of 4.0 percent from the same time period in 2008. The median is a typical market price where half the homes sold for more, half sold for less.

“Although the median sale price is a better indicator of overall price trends I should point out that the year-to-date 2009 average price of $124,900 does reveal a decline of 1.7 percent. This helps to underscore the fact that homes in the $250,000 plus range are moving much more slowly, thus often resulting in price reductions,” said Long.

“For those buyers who are interested in taking advantage of the $8,000 first-time homebuyer tax credit there is still time, however, time is of the essence as buyers must finalize their purchase by November 30th to be eligible for this tax credit.” Long says that she expects yesterday’s announcement by the Illinois Housing Development Authority (IHDA) to provide an additional boost for first-time homebuyers. “IHDA announced its new ‘Illinois Home Start Loan Program’ intended to assist those first-time buyers that have been unable to scrape together the necessary downpayment by providing these buyers with a means to borrow against the federal tax credit to be used for a portion of their downpayment,” said Long.

The inventory of homes for sale at the end of June was 1,631, reflecting an 25.6 percent decrease from the 2,048 homes for sale during the same time last year. Current inventory levels stand at 1,641 homes, which is the lowest level since June of 2005. The current inventory level reflects about a 5.8 month supply at the average monthly sales pace during the past twelve months.

“A trend indicator that we watch fairly closely is the amount of time that a home is on the market before it sells. The average cumulative days on market in June of 2009 was 115 days. This figure decreased 15 days from the prior month of May, however, it increased 3 days from June of 2008. It is perhaps more significant to note the broader trend in that the average cumulative days on market for year-to-date through June of 2009 was 100 days, reflecting a decrease of 4 days from the same period in 2008, “ said Long.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.42 percent in June 2009, down from the 6.32 average rate during June of 2008.

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.

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