SPRINGFIELD (September 21, 2011) Unit home sales were up while the median home sale price for single-family homes decreased in the Capital Area during August 2011, according to the Capital Area Association of REALTORS (CAAR).

For the month of August 2011, the median home sale price (for all single-family homes and condominiums) was $112,300, a decrease of 4.2 percent from the August 2010 price of $117,000. Year-to-date through August 2011 the median home sale price was $110,000, down slightly from the $110,900 median sale price from the same time-period in 2010. There were a total of 346 homes sold in August 2011 as compared to 249 homes sold in August 2010, reflecting a 39.0 percent increase. Year-to-date home sales through August of 2011 totaled 2,178, reflecting a 9.1 percent decrease from the 2,396 sales in August of 2010.

“The August home sales figure is a welcome sight” said REALTOR Terry Nuding, ABR, CRS, GRI, SFR president of the Capital Area Association of REALTORS.“ “Certainly, a 39.0 percent increase in home sales is very impressive, however, our rate of sales is still tracking at 2002 levels. This means that many would-be buyers, who perhaps possess the desire to buy, are still lacking the necessary confidence in the economy.” said Nuding.

According to Nuding, we continue to realize a positive trend with our sale pending numbers. “September marks the third consecutive increase when comparing

month-over-month with the prior year. There were 401 home sales pending in September 2011, reflecting a 20.4 percent increase over the prior year,” said Nuding.

The number of homes listed for sale in the Capital area at the end of August
2011 was 1,770, reflecting a 3.3 percent decline from the 1,828 listings at the end of August 2010. As of September 20th the number of listings stood at 1,793. Today, we have a 6.7 month supply of inventory based on the average monthly sales rate which is down slightly from the August 2011 inventory level.

“Sellers need to formulate realistic expectations regarding the home sale process. The September 1st implementation of new Fannie Mae and Freddie Mac appraisal requirements will add several days to the length of time it takes to obtain an appraisal on a property and will likely result in an increase in the cost. Other challenges that sellers continue to face include short appraisals and a shortage of “credit worthy” buyers due to the tightened underwriting guidelines,” said Nuding.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.3 percent in August 2011, down slightly from 4.5 percent during the same period in 2010.

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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