SPRINGFIELD (November 9, 2009) The median single-family home sale price and unit home sales both increased in the Capital Area during the third quarter of 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

The median sale price of existing-home sales - including single-family and condominiums for the third quarter of 2009 was $111,000, reflecting an all-time high, according to CAAR. Total home sales equaled 1,119 units during the third quarter of 2009, reflecting a 8.2 percent increase over the third quarter of 2008.

“For four straight months nearly every market indicator that we monitor has continued toward a path of improvement. Coupled with the recent extension and expansion of the first-time homebuyer tax credit the local housing market is well positioned to post a sustained recovery,” said CAAR president, Linda Nelson, GREEN, GRI, e-PRO.

New construction sales during the first nine months of 2009 demonstrated an increase in price but a decrease in units. For year-to-date through September there were 165 new construction sales as compared to 180 during the same time in 2008. The median sale price for year-to-date through September of 2009 was $218,500 as compared to $210,500 during the same time in 2008. “The increasing median price coupled with the uncharacteristically high number of existing single-family home sale permits (36 total) taken out in the City of Springfield during September suggests that the glut of new homes that once existed has largely been thinned out,” said Nelson.

The number of new listings taken during the third quarter of 2009 was 1,513,
reflecting a 0.9 percent decrease from the number of new listings taken during the same period in 2008. As of November 8th there were 1,591 homes for sale in the Capital Area reflecting a 5.5 month supply of inventory. Current inventory levels are down about 22 percent from this time last year and are at their lowest levels since May of 2005.

The third quarter of 2009 shows an average cumulative days on market (CDOM) of 102 reflecting an increase from the 97 CDOM during the same time last year but a decrease from the 110 CDOM during the previous quarter. The year-to-date CDOM through September of 2009 is 110 days as compared to 106 days during the same time in 2008. “CDOM has declined steadily since the beginning of the year and is very much a function of supply and demand. We anticipate that this trend will continue,” said Nelson.

“The recent improvement in the housing market is no doubt due, in part, to the impact of the first-time home buyer tax credit. Obviously, the recent extension and expansion of this credit will bode well for the housing industry. Under a measure signed into law last Friday by President Obama the first-time buyer tax credit of up to $8,000 would be extended through April 30, 2010. Buyers would need to have a contract to purchase in place by April 30 and would have until July 1, 2010 to close. The credit also is expanded to provide up to a $6,500 tax credit for qualifying prospective buyers who already own their own home and who have lived in it as their principal residence for at least five of the past eight years. There are income limits as well," said Nelson.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.2 percent during the third quarter of this year, down over a full percent from the 6.3 percent rate in the third quarter 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 residential and commercial real estate industry. The Capital Area’s Resource for Real Estate Information can be found at www.SeeHouses.com.

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