SPRINGFIELD (August 24, 2010). Both the sale of single-family unit homes and the median sale price decreased in the Capital Area during July 2010, according to the Capital Area Association of REALTORS® (CAAR).

According to CAAR, during July of 2010 there were 233 home sales (including single-family homes and condominiums), reflecting a 39.0 percent decrease from the 385 homes sold in July of 2009. Year-to-date through July of 2010 there were 2,144 homes sold, reflecting an increase of 5.3 percent over the 2,036 home sales during the same period during the prior year.

The median home sale price for July of 2010 was $106,000, reflecting a decrease of 8.2 percent from the $115,500 July 2009 price. Year-to-date through July of 2010 the median sale price of a home was $110,000, identical to the median home sale price during the same period in 2009. The median is a typical market price where half the homes sold for more, half sold for less.

“The decrease in the median price of a home during July should not be a particular cause for concern, ” said Linda Nelson, GRI, GREEN, e-PRO, SFR, president of the Capital Area Association of REALTORS. “We have been hinting for a few months that the homebuyer tax credit was pushing prices up a bit. Now that the tax credit has run its course we are seeing evidence of this as prices relax a bit from last year. In spite of this July prices were the second highest on record,” said Nelson.

The number of new listings taken continued to decline with 479 new listings in July of 2010, reflecting a decrease of 8.1 percent from the 521 new listings taken during July of 2009. The 1,729 homes available at the end of July was nearly unchanged from the 1,726 homes available during the same period in 2009. As of August 23rd there were 1,773 homes for sale in the Capital Area, reflecting a 5.6 month supply of inventory. While overall inventory is increasing there is still a reasonably good balance between buyers and sellers.

The average cumulative time on market in July of 2010 dropped to 99 days, as compared to 128 days during the prior July. The average cumulative time on market for year-to-date through July of 2010 was 96 days, reflecting a significant decrease from the 118 days during the same time period in 2009.

“Last month when we released our sale pending numbers for July we talked about a ‘tax credit hangover’. With July numbers officially recorded this hangover is now a reality. For sellers this signals some tougher months ahead as this ‘tax credit hangover’ is expected to continue for at least the immediate future. July sale pendings, which are down 32.9 percent support this statement. However, for buyers the post-tax credit environment continues to be one of unprecedented opportunity with the lowest mortgage rates in decades, many homes to choose from and affordable prices,” said Nelson.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.6 percent in July 2010, down from the 5.2 average rate during July of 2009.

The Capital Area Association of REALTORS® is the Voice for Real Estate in the Capital Area representing more than 800 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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