SPRINGFIELD (January 2, 2008) The unit home sales rate increased in the Capital Area during November 2007, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of November 2007, total home sales (which include single-family and condominiums) were up 6.2 percent with 309 homes sold, compared to 291 homes sold in November of 2006. November 2007 home sales were 9.2 percent ahead of the 283 sales recorded in October of this year. For year-to-date through November of 2007 home sales totaled 3,773, down 2.8 percent from the 3,883 homes sold during the same period of time during 2005, which ended up as the best year on record.

“Overall, we are very pleased with the way that the local housing market is shaping up in 2007, said REALTOR® Phil Chiles, president of the Capital Area Association of REALTORS®. “Sales really haven’t been the challenge so much as inventory. Inventory which was at an all-time high of 2,017 units at the end of August 2007 has slowly begun to decrease. By the end of November of 2007 inventory had subsided to 1,876 units, 12 units ahead of November 2006, and only 5.8 percent ahead of November 2004 levels,” said Chiles.

The Capital Area median home sale price in November was $94,900, a decrease of 4.0 percent from the $98,900 November 2006 price. The median is a typical market price where half the homes sold for more, half sold for less. “Although the November median sale price was off a bit, the overall trend this year has been very positive with seven of eleven months registering price increases,” said Chiles. The median price for year-to-date through November of 2007 was $104,000, a 4.1 percent increase over the $99,900 median price from the same period in 2006.

“Not only did November 2007 home sales reflect a 6.2 percent increase over November of 2006 but it was the second best November on record,” said Chiles.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.21 percent in November 2007, nearly unchanged from the 6.24 average rate during November of 2006.

Chiles went on to say that he is frustrated by the persistent negative coverage of the housing market nationally. “While some areas of the country have experienced a boom and bust pattern the Capital Area refuses to participate. Our local market continues along in a steady fashion,” said Chiles. “Although our local market is in good shape buyers are somewhat hesitant to act as a result of what they hear taking place on a national level,” said Chiles.

“With early indications of strong December home sales and price gains the housing market locally is poised to enter 2008 with a great deal of momentum,” said Chiles. “Individuals who are on the fence about buying should consider making a move soon as conditions are not likely to improve and may begin to favor sellers if inventory subsides demonstrably over the next several weeks,” 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.

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