SPRINGFIELD (February 26, 2010) The median single-family home sale price increased while unit home sales also increased in the Capital Area during January 2010, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of January 2010, the median home sale price (for all single-family homes and condominiums) was $104,500, an increase of 13.0 percent from the $92,500 January 2009 price. The median is a typical market price where half the homes sold for more, half sold for less. Home sales in the Capital Area were up 3.1 percent in January of 2010 with 167 homes sold, compared to 162 homes sold in January of 2009. January home sales reflect the eighth consecutive increase in sales when compared to the same month in the previous year.

“In recent memory we haven’t witnessed a better market for both buyers and sellers,” said REALTOR Linda Nelson, GRI, GREEN, e-PRO, SRF president of the Capital Area Association of REALTORS. “A combination of tax incentives, affordable housing stock and historically low mortgage interest rates make it an ideal time for both first-time buyers and trade-up buyers. At the same time, a tightened inventory coupled with steady price gains make it an ideal time for sellers”, said Nelson.

“We were encouraged by the January 2010 median home sale price of $104,500 which is the highest on record for January. The median home sale price has increased ten out of the last thirteen months when compared to the same month during the previous year. In spite of this the Capital Area is still a very affordable market as compared to other like-sized communities in Illinois such as Champaign-Urbana, Rockford and Bloomington-Normal,” said Nelson.

The 1,344 listings at the end of last year reflected the lowest number of homes for sale in over five years. Listings rose only modestly during the month of January closing the month out with 1,390 homes on the market. This reflects a decrease of 24.5 percent from the same time a year ago when there were 1,841 listings on the market. The 1,402 listings on the market today reflect a tight inventory of 4.7 months at the current sales rate.

According to Nelson, “activity taking place right now points toward another surge in sales during the Spring season as first-time buyers take advantage of an $8,000 tax credit for the purchase of a principal residence until April 30, 2010. Repeat buyers who have lived in their homes in any consecutive five-year period in the last eight years are eligible for a $6,500 tax credit as well. Contracts must be signed by April 30 and closings must occur by the end of June.”

“Time is ticking and I can’t emphasize enough the urgency for those home buyers that are wanting to take advantage of the tax credit. As of today, they have only 64 days to get a home under contract by the April 30th deadline. For individuals wanting to take advantage of the repeat home buyer tax credit but who have to sell their current home first are really up against a wall,” said Nelson.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.03 percent in January 2010, nearly unchanged from the 5.05 average rate during January of 2009. “Mortgage interest rates cannot continue at these rock-bottom levels for a continued period of time and will likely begin to climb later in 2010,” said Nelson.

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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