SPRINGFIELD (October 24, 2007) The median home sale price and unit home sales in the Capital Area recorded a dip during September 2007, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of September 2007, total home sales (which include single-family and condominiums) were down 16.0 percent with 305 homes sold, compared to 363 homes sold in September of 2006. For year-to-date through September of 2007 home sales totaled 3,176, down a mere 2.3 percent from the 3,252 homes sold during the same period of time during 2005, which went on to be the best year on record.

The Capital Area median home sale price in September was $100,000, down 8.0 percent from the $108,000 price a year earlier. The median is a typical market price where half the homes sold for more, half sold for less. “In spite of the September price dip the overall trend is positive with the median price experiencing gains in six of the last nine months. Additionally, the median price for year-to-date through September of 2007 is $105,000, a 2.9 percent increase over the $102,000 median price from the same period in 2006", said Chiles.

“Certainly, I would much rather be reporting to you that we had positive growth in September, however, that is not the case. Having said that it is important to point out that our overall market trends this year have been positive, due in part, to the favorable underlying market conditions that have persisted throughout the year. In comparison to the balance of this year our September numbers are a bit of an anomaly", said Chiles.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.38 percent in September 2007, down slightly from the 6.40 average rate during September of 2006.

According to Chiles the long-term prospects for our local real estate market are very good with the Capital area being one of the most affordable markets in the nation, with a plentiful supply of homes and continued modest price appreciation. “Homeownership continues to be one of the single best investments one can make over the long-term”, said Chiles. Chile’s optimism is buoyed by the impressive Greater Springfield Chamber of Commerce Q5 efforts that are underway to grow our local economy.

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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