Homes Remain Affordable During Inventory Pinch

Homes Remain Affordable During Inventory Pinch

SPRINGFIELD (September 12, 2017) Capital Area REALTORS® (CAR) Multiple Listing Service statistics for August show year-over-year increases in new listings and total inventory with declines reported in pending sales, closed sales and days on market. Months supply of inventory was unchanged.

For the month of August 2017, the median home sale price (for all single-family homes and condominiums) was $125,600, a decrease of 4.9 percent from the $132,000 August 2016 price. For the year-to-date through August of 2017 the median home sale price was $122,800, up 0.6 percent from the $122,000 price during the same period last year. The median is a typical market price where half the homes sold for more, half sold for less.

“In many parts of the country home prices are rising faster than income levels, however, we are fortunate that this is not the case here, said REALTOR John Klemm of Sangamon Realty and president of the organization.

The number of homes sold in the Capital Area decreased by 3.2 percent in August of 2017 with 368 homes sold, compared to 380 homes sold in August of 2016. For year-to-date through August of 2017 the number of homes sold was 2,603, down 0.9 percent from the same period last year.

According to Klemm, “The tightest price range as far as inventory is concerned continues to be in the $100,000 - 200,000 range with 3.7 months,” said Klemm.

The 23 foreclosure sales in August of 2017 accounted for 6.2 percent of all sales, down from the 30 foreclosure sales (or 7.9 percent of all sales) during the prior August.

The average cumulative days on market (from list date to sell date) for all home sales in August of 2017 was a brisk 65 days, down from 77 days in August of 2016. Year-to-date through August 2017 average cumulative days on market was 81, down 4 days from the prior year. “The fastest moving price range during the month of August was from $200,000 – 300,000, while the slowest moving price range was above $300,000,” said Klemm.

The month’s supply of inventory, the number of months it would take to deplete current inventory at the recent sales rate, remains unchanged from last August at 4.4 months.

“Mortgage rates, already low by historical standards, dipped further in August and reached their lowest point of the year,” said Klemm. The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 3.9 percent in August 2017, up from the 3.4 average rate during August of 2016.

The Capital Area REALTORS® is the Voice for Real Estate in the Capital Area representing more than 900 members involved in all aspects of the real estate industry. The Capital Area’s Resource for Real Estate Information can be found at

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