SPRINGFIELD (July 22, 2010). Both the sale of single-family unit homes and the median sale price increased in the Capital Area during June 2010, according to the Capital Area Association of REALTORS® (CAAR).

According to CAAR, during June of 2010 there were 407 home sales (including single-family homes and condominiums), reflecting a 3.6 percent increase over the 393 homes sold in June of 2009. Year-to-date through June of 2010 there were 1,910 homes sold, reflecting an increase of 15.7 percent over the 1,651 home sales during the same period during the prior year.

The median home sale price for June of 2010 was $123,500, reflecting an increase of 2.9 percent over the $120,000 June 2009 price. Year-to-date through June of 2010 the median sale price of a home was $110,900, reflecting an increase of 1.7 percent over the $109,000 median home sale price during the same period in 2009. The median is a typical market price where half the homes sold for more, half sold for less.

“The June 2010 median price of $123,500 represents an all-time high for the Capital Area and the eighth monthly increase in the past ten months, ” said Linda Nelson, GRI, GREEN, e-PRO, SFR, president of the Capital Area Association of REALTORS. “Clearly the homebuyer tax credit that expired April 30th resulted in more competition between buyers and, as such, was a factor in the prices that we are seeing today,” said Nelson.

The number of new listings taken continued to decline in June of 2010 with 451 new listings in June of 2010, reflecting a decrease of 10.9 percent from the 506 new listings taken during June of 2009. The 1,702 homes available at the end of June was nearly unchanged from the 1,710 homes available during the same period in 2009. As of July 18th there were 1,740 homes for sale in the Capital Area, reflecting a 5.4 month supply of inventory which suggests a good balance between buyers and sellers.

The average cumulative time on market in June of 2010 dropped to 83 days, as compared to 101 days during the prior June. The average cumulative time on market for year-to-date through June of 2010 was 96 days, reflecting a significant decrease from the 115 days during the same time period in 2009.

“The number of homes that went sale pending in June is probably the most telling story. The ‘tax credit hangover’ we are experiencing is reflected in these numbers. For June 2010 there were 287 sale pendings, reflecting a 33.7 percent decrease from the 433 sale pendings during the same period in 2009. The million dollar question is ‘how long will this market pause continue?’ To answer this question we need to look at the overall economic environment and realize that people need to be comfortable with their own situation before making a large investment such as a home,” said Nelson.

“With recent declines in interest rates we are enjoying the lowest mortgage interest rates in fifty years. These low rates, coupled with a good selection of homes, affordable prices and fewer buyers to compete against means that the housing market is more favorable to buyers than at any time in the last several months, irrespective of the tax credit,” said Nelson.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.7 percent in June 2010, down from the 5.4 average rate during June of 2009.

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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