SPRINGFIELD (July 25, 2008). The median single-family home sale price increased slightly while unit home sales return to pre-boom 2003-2007 normal levels in the Capital Area during June 2008, according to figures from the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of June 2008, the median home sale price (for all single-family homes and condominiums) was $114,800, revealing an increase of 1.1 percent over the $113,500 June 2007 price. The year-to-date median home sale price through June of 2008 yielded $105,000, up 2.9 percent over the same period in 2007, resulting in a decrease of 21 percent. 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 June amounted to 362 units, well below the 460 home sales recorded in June of 2007. Year-to-date home sales through June of 2008 revealed 1,760 unit sales, down 15.3 percent from the 2,077 during the same period in 2007.

“According to CAAR president, Philip Chiles, ABR, GRI, buyers should know that they can invest confidently in our local real estate market. With affordable prices and an ample supply of inventory it continues to be an ideal time for first time buyers and trade-up buyers. Additionally, because the Capital area has not experienced the sharp ups and downs of some markets there is no bubble bursting here.”

“Although unit sales have returned to pre-boom normal levels some may believe that our market locally is bad because of our high inventory but that is not the case,” said Chiles. The inventory of homes for sale at the end of June was 1,946, reflecting a 1.8 percent increase from the 1,911 homes for sale during the same time last year. Inventory is at its highest level for this time of year. Current inventory levels reflect a 6.3 month supply of inventory at sales pace for the past twelve months. According to Chiles, this high inventory level continues to result in a strong negotiating position for buyers in many price ranges.

“When you consider the facts, it’s easy to see why nearly 3,700 people will choose to buy a home this year. There are some challenges in the market, but overall there are many more opportunities today,” said Chiles. “Real estate continues to be a solid long-term investment and members of the Capital Area Association of REALTORS are working in several ways to help the public understand conditions in our local market and take advantage of the opportunities to invest in real estate,” said Chiles.

The average cumulative days on market (CDOM) for homes that have sold during June of 2008 was 102 as compared to 92 during June of 2007. For the year-to-date 2008 the CDOM was 111 days as compared to 97 days during this same time in 2007.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.04 percent in May 2008, down from the 6.26 average rate during May of 2007. “I think there is a strong consensus that mortgage rates have gone about as low as their going to. Therefore, if someone is thinking about making the move to homeownership now is the time to hop off the fence. Anyone earning a steady living should not have a problem qualifying for a mortgage and there is still a lot of cheap money available,” 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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