SPRINGFIELD (May 11, 2006) Much to the pleasant surprise of many existing home sales established an all-time record during the first quarter of this year, according to the Capital Area Association of REALTORS® (CAAR).

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – equaled 874 units during the first quarter of 2006. First quarter 2006 sales were the highest first quarter on record, and were an impressive 10.4 percent above the 792 unit pace during the first quarter of 2005. This represents the fifth consecutive year that first quarter home sales were at record levels.

Cheryl Dambacher, CAAR’s president, said that we had expected the housing market to begin to settle down a bit during the first quarter. “To the contrary, home sales have started the year off at unprecedented levels,” she said. This pace will not continue Dambacher concedes. “Home sales will fluctuate up and down over the remainder of the year but will stay at a high plateau, resulting in the third or fourth strongest year on record,” she said.

The median sale price of a home during the first quarter of 2006 was $93,000 reflecting a typical increase of 3.0 percent over the 2005 median sale price of $90,300. Total home sales volume for the first quarter of 2005 reached $99.0 million reflecting a 13.6 percent increase over the previous year. The median price of a two bedroom home during the first quarter of 2006 was $63,000 while the median sale price of a three bedroom home was $103,700. Homes with four or more bedrooms sold for a median sale price of $143,300.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.3 percent during the first quarter of this year, up modestly over the 5.8 percent rate in the first quarter of 2005. Dambacher said mortage interest rates are trending up but will remain favorable.

There are currently 1,645 homes available for sale reflecting historically high levels. “Although inventory levels are high we have a 4.6 month supply at the current sales pace which is still about one month below the national inventory level. The number of homes on the market have been improving to where inventory levels are providing buyers with more choices than they’ve had in quite some time,” said Dambacher.

Dambacher said changes in the housing market mean consumers need more professional guidance. “Changing conditions require careful adjustments, and this is especially true for home sellers in most areas who are now dealing with buyers that are on equal footing –– it’s no longer a seller’s market,” said Dambacher. “Most buyers in today’s market are well-informed and have agents that represent their interests, so sellers need good advice on how to show and market their homes in the current environment, as well as negotiation skills –– critical values that real estate agents bring to the table.”

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 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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