SPRINGFIELD (April 23, 2009). The median single-family home sale price increased while unit home sales also increased in the Capital Area during March 2009, according to the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.
For the month of March 2009, the median home sale price (for all single-family homes and condominiums) was $115,800, reflecting an increase of 9.5 percent over the $105,800 March 2008 price. The March 2009 price of $115,800 represents an increase of 15.8 percent over the February 2009 median home sale price of $100,000. The median is a typical market price where half the homes sold for more, half sold for less.
According to CAAR, March 2009 yielded 288 total home sales reflecting a 13.4 percent increase over the 254 sales in March of 2008. March 2009 home sales reflected a 45.5 percent increase in sales over the 198 homes sold during the prior month of February 2009.
“March marks the second successive month where we have seen gains in the median sale price. This is a welcome development after seeing downward pressure on prices during the second half of 2008. This doesn’t necessarily suggest an end to the buyer’s market but this indicator coupled with declining inventory may signal a move in that direction,” says Long.
“The impressive number of home sales in March is a reflection of a
variety of positive factors that have come together creating a ‘perfect storm’ of sorts for first-time home buyers,” said Nancy Long, ABR, CRS, GRI,
president of the Capital Area Association of REALTORS. “Factors contributing to this 'perfect storm’ of activity include a nice selection of homes for sale at an affordable price, incredible mortgage rates and, of course, the new $8,000 first-time home buyer tax credit that was included as part of the federal economic stimulus plan,” said Long.
The $8,000 tax credit for first-time buyers who purchase a home on or after Jan. 1, 2009 and before Dec. 1, 2009 represents a window of opportunity for this entry level buyer. March sale figures help to underscore the fact that first-time buyers are realizing this unique opportunity. Not only is this tax credit great news for people who have been thinking about buying their first home but it is also creating opportunities for trade-up buyers by creating a pool of buyers for their homes,” says Long. “And because this tax credit doesn’t have to be repaid like last year’s $7,500 credit, it represents a true credit for those who are qualified and who buy before Dec. 1, 2009".
As of April 20th there were 1,688 homes for sale in the Capital Area reflecting a 5.9 month supply of inventory. While inventory is down a modest 2.2 percent from April of 2008 it is down by more than 15 percent from the highwater mark of July/August in 2008 when there were over 2,000 homes available for sale.
“Another encouraging sign that we’ve seen has to do with the amount of time that a home is on the market before a sale is achieved. The average cumulative days on market in March of 2009 was 136, representing a decrease of three days from March of 2008. This is the first year-over-year decrease in time on market that we’ve seen in several months,” said Long. “Some of the fastest moving price ranges that we’ve seen this year are homes in the 40-50k (67 days), 80-90k (89 days) and 200-250k (100 days) range.”
The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 5.00 percent in March 2009, down nearly a full percentage point from the 5.97 average rate during March of 2008.
“For those in a position to buy a home right now or trade-up the message is clear. There may be no better time to purchase your dream home than there is right now,” said Long.
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.
###
Access related statistical reports here.
|
