SPRINGFIELD (April 22, 2008). The median single-family home sale price increased while unit home sales decreased in the Capital Area during March 2008, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of March 2008, the median home sale price (for all single-family homes and condominiums) was $104,000, an increase of 4.0 percent over the $100,000 March 2007 price. The year-to-date median home sale price through March of 2008 yielded $98,500, up 5.3 percent over the same period in 2007. The median is a typical market price where half the homes sold for more, half sold for less.

Home sales in the Capital Area during the month of March amounted to 252 units. Although March 2008 home sales experienced their fourth consecutive month-to-month increase, sales were down 29 percent from March of 2007. Year-to-date home sales through March of 2008 revealed 667 unit sales, down 19.4 percent from the same period in 2007.

“Several factors help to explain why home sales were off in March,” said Phil Chiles, president of the Capital Area Association of REALTORS. “Fewer showings in January and February due to the harsh winter has translated into fewer March home sales. Also, we have begun to see a tightening of credit thus making it more difficult for buyers to obtain financing. Additionally, the lack of any measurable job growth in the Capital area is a factor that should not be overlooked. Finally, the increase in gas and food prices have impacted consumer’s discretionary income. When it comes to spending their hard earned money, people are having to make tougher choices,” said Chiles.

As of April 21st there were 1,726 homes for sale in the Capital Area. Although inventory has remained relatively constant since December, inventory does remain at its highest level for this time of year. “On a positive note, even as our market continues to experience modest gains in the median home sale price, we continue to remain very affordable,” said Chiles.

“With inventory being high and sales down that can mean only one thing. Sellers should expect the amount of time that it takes to sell their home to increase. Additionally, buyers are going to try to work sellers over on price and/or terms,” said Chiles. The cumulative days on market figure in March of 2008 was 141 days, up considerably from 96 days during the same month in 2007. The year-to-date cumulative days on market figure through March of 2008 was 110 days, up from 93 days during the same period in 2007.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.97 percent in March 2008, down from the 6.16 average rate during March of 2007.

“For those in a position to buy a home right now or trade-up the message is clear. There may be no better time to purchase your dream home than there is right now,” 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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