SPRINGFIELD (May 8, 2009) The median sale price of existing-home sales - including single-family, townhomes and condominiums for the first quarter of 2009 reflected an all-time high of $105,500, according to the Capital Area Association of REALTORS® (CAAR). Total home sales equaled 648 units during the first quarter of 2009, reflecting a 3.3 percent decrease from the first quarter of 2008.

According to CAAR president, Nancy Long, ABR, CRS, GRI, the first quarter median home sale price comes off the heals of consecutive price increases in February and March. “Any time you have a statistical increase in the median home price that is a good thing, however, that doesn’t necessarily translate into an actual increase in home values. Simply put, this is an indication of what buyers were willing to pay across the entire market and may not be a reflection of individual home prices trends,” said Long. The median is a typical market price where half the homes sold for more, half sold for less.

“Although first quarter 2009 sales declined 3.3 percent from the same period in 2008 and reflect 2001 levels the quarter finished strong with March 2009 sales yielding a 13.4 percent increase over the prior year,” said Long.

New construction sales during the first quarter 2009 provided a bright spot with 47 sales which surpassed the prior year’s total of 46 sales. However, the first quarter 2009 median sale price of $205,000 for new construction of reflects a sizeable decrease from the first quarter 2008 new construction median price of $223,400. “This is illustrative of the fact that we are beginning to see some of the new construction inventory dissipating which is a good thing for the market,” said Long.

The number of new listings taken during the first quarter of 2009 were down by 6.4 percent from the number of new listings taken during the same period in 2008. As of May 5th there were 1,674 homes for sale in the Capital Area reflecting a 5.9 month supply of inventory. Current inventory levels are down about 1.6 percent from this time last year.

“The average cumulative days on market (CDOM) for homes that have sold is perhaps the best indicator of the true market condition. In a balanced market, the CDOM should be around 90 days. The first quarter of 2009 shows a CDOM of 128 reflecting a decrease of 3 days from the 131 CDOM during the same time last year.

“I’ve said this before but it bears repeating. The new $8,000 first-time home buyer tax credit that was included as part of the federal economic stimulus plan is a golden opportunity for first-time homebuyers. To take advantage of this $8,000 tax credit qualified first-time buyers must purchase a home on or after Jan. 1, 2009 and before Dec. 1, 2009," said Long.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.1 percent during the first quarter of this year, down significantly from the 5.9 percent rate in the first quarter of 2008.

“There are positive signals in the housing market as inventories and time on market continues to yield a slight decline while the median home sale price is increasing. In spite of these positive indicators we don’t see this translating into an increase in sales in the immediate future as sale pendings for April 2009 were off by about 13 percent from the prior year. Whether we will see some long-term improvement in sales will be determined by a number of factors including the stimulus package, unemployment figures and overall consumer confidence,” said Long.

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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