SPRINGFIELD (September 29, 2006) Home sales in the Capital Area are ahead of the record level set in 2005, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Serivce. Year-to-date home sales totaled 2,937 in 2006, up 2.1 percent over the 2,877 homes sold during January through August of 2005. For the month of August, total home sales (which include single-family and condominiums) were down 6.1 percent to 402 homes sold, compared to 428 sales in August 2005.

The Capital Area median home sale price in August was $110,000, up 2.3 percent over the $107,500 price a year earlier. The median is a typical market price where half the homes sold for more, half sold for less. With August’s increase the year-over-year median price for existing single family homes has increased five out of the last six months.

Cheryl Dambacher, CAAR President said that contrary to many areas of the country home prices are holding strong locally. “Our area hasn’t experienced the year-after-year double digit price increases that some markets have. With our steady and relatively modest price gains we are somewhat insulated from the dramatic swings that some markets experience,” said Dambacher.

“After record breaking numbers in the first and second quarter of this year home sales are easing up to a more sustainable pace,” said Dambacher. “The reporting of many of the national media outlets would have you believe that there is a dark cloud over the entire housing market. Upon review of our data that’s clearly not the case here.”

The median price of new construction jumped to $243,500 during August of 2006 as compared to $190,000 during August of 2005. The year-over-year median price for new construction has increased every month this year.

There were 36 new construction homes reported sold in August of 2006 as compared to the 31 sold in August of 2005. Year-to-date through August of 2006 there were 251 new construction homes reported sold as compared to the 244 new homes sold year-to-date through August of 2005.

With 1866 homes currently for sale listing inventory is about 14 percent ahead of last year. “Although our inventory levels are high we currently have a 5.25 month supply of homes for sale as compared to 7.5 months of inventory nationally. Sales are slowing, homes are plentiful and sellers are negotiating,” said Dambacher.

The average days on market for new construction in August of 2006 was 106 as compared to 95 in August of 2005. Existing homes are moving faster with an average days on market time of 66 days in August of 2006 as compared to 61 in August of 2005. “Overall, homes are taking a bit longer to move which is a reflection of the inventory available,” said Dambacher.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.57 percent in August 2006, down 0.24 points from the 6.81 average rate during the previous month. “Due to high inventory levels sellers need to price to current market conditions or be flexible on terms if they want to sell within a reasonable amount of time,” said Dambacher. “At the same time interest rates have moderated, so there are good opportunities for buyers in today’s market.”.

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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