SPRINGFIELD (March 17, 2011) Unit home sales for single-family homes increased while the median home sale price also decreased in the Capital Area during February 2011, according to the Capital Area Association of REALTORS (CAAR).

For the month of February 2011, the median home sale price (for all single-family homes and condominiums) was $92,700, a decrease of 4.9 percent from the February 2010 price of $97,500. “While our median sale price dipped a bit this month there is no real concern given that the general trend is positive,” said REALTOR Terry Nuding, ABR, CRS, GRI, SFR president of the Capital Area Association of REALTORS. The year-to-date median sale price through February of 2010 was 105,500, reflecting an increase of 3.4 percent over the $102,000 price during same period in 2009. The median is a typical market price where half the homes sold for more, half sold for less.
“With a very promising start to the new year as reflected in January sales February sales tell another story. While February home sales were probably somewhat impacted by the particularly bad weather we experienced the overriding reason is probably more closely related to the economy and consumer confidence,” said Nuding. According to CAAR, there were a total of 165 homes sold in February 2011 as compared to 218 homes sold in February 2010, reflecting a 24.3 percent decrease. Year-to-date homes sales through February of 2011 totaled 344, reflecting a 10.6 percent decrease from the 385 sales in February of 2010.

According to Nuding, a good indicator for future sales trends is the number of homes that come under contract in a given month (e.g., sale pendings). “Unfortunately, for February 2011 there were 251 sale pendings, reflecting a decrease of more than 29 percent from the prior February.”

“The environment that exists in today’s real estate market is one of great opportunities for a buyer. Interest rates are still at historical lows, there is ample
inventory of homes available, and affordability is near generational highs. Those with growing families and steady jobs should be asking themselves if now is the time to ‘move up’,” said Nuding.

The inventory of homes for sale in the Capital area continued to tighten in February with 1,273 listings at the end of February 2011, reflecting a 4.3 percent decline from the 1,328 listings at the end of February 2010. However, as of March 16th listing inventory had increased to 1,446 listings nearly unchanged from the same time period in 2010. Today, we are at a 5.1 month supply of inventory based on the average monthly sales rate which is considered a balanced market.

According to Nuding, the amount of time it took to sell a home increased in February. “The typical home was on the market an average of 126 days in February 2011 as compared to 100 days during February of 2010,” said Nuding.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.95 percent in February 2011, down slightly from the 5.13 average rate during February of 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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