SPRINGFIELD (December 22, 2009). The median single-family home sale price and unit sales both increased in the Capital Area during November 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

Home sales in the Capital Area during the month of November amounted to 363 units, reflecting an increase of 78.9 percent over the 203 sales in November of 2008. Year-to-date home sales through November of 2009 revealed 3,474 unit sales, up 5.6 percent from year-to-date through November of 2008.

For the month of November 2009, the median home sale price (for all single-family homes and condominiums) was $107,000, reflecting an increase of 13.8 percent from the $94,000 November 2008 median price. The median sale price for year-to-date through November 2009 was $109,000, reflecting an increase of 3.8 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, Linda Nelson, GRI, GREEN, e-PRO, SRS, “the unusually high number of home sales closed in November was, in large part, due to the many first-time homebuyers who entered into contracts during the month of October in order to take advantage of the first-time homebuyer tax credit set to expire on November 30th. As we all now know, of course, the tax credit was extended and expanded.”

The inventory of homes for sale at the end of November was 1,521, reflecting a 27.7 percent decrease from the 1,942 homes for sale during the same time last year. Current inventory levels stand at 1,506 homes, which is at the lowest level since March of 2005. The current inventory level reflects a 4.9 month supply at the average monthly sales pace for the past twelve months. “This continued tightening of inventory points to a more balanced market and suggests that this might be a good time for prospective sellers to contact a professional to discuss listing their home. Some of the most competitive price ranges are in the 100,000 - $160,000 price range where we have less than 3 ½ months worth of inventory,” said Nelson.

“The number of sales pending at the end of November was 214, reflecting a 2.7 percent decrease from the 220 sales pending at the same time in 2008. The average cumulative days on market in November of 2009 was 87 days reflecting a significant decrease of 21 days from the same month in 2008 and a decrease of 15 days from October of 2009. The average cumulative days on market for year-to-date through November of 2009 was 107 days which mirrors numbers for the same period in 2008.

“Ideal homebuying conditions along with the extended $8,000 first-time homebuyer tax credit and the expanded $6,500 homebuyer tax credit for certain existing homebuyers will cause the next several months to be very active. More competition in the market increases the likelihood for multiple offer situations which makes it all the more important for buyers to seek the counsel of a professional,” said Nelson.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.88 percent in November 2009, down from the 6.09 average rate during November 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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