SPRINGFIELD (June 22, 2010). Both the sale of single-family unit homes and the median sale price increased in the Capital Area during May 2010, according to the Capital Area Association of REALTORS® (CAAR).

According to CAAR, during May of 2010 there were 417 home sales (including single-family homes and condominiums), reflecting a 29.1 percent increase over the 323 homes sold in May of 2009. Year-to-date through May of 2010 there were 1,503 homes sold, reflecting an increase of 19.5 percent over the 1,258 home sales during the same period during the prior year.

The median home sale price for May of 2010 was $113,900, reflecting an increase of 6.4 percent over the $107,000 May 2009 price. Year-to-date through May of 2010 the median sale price of a home was $107,500, reflecting an increase of 2.1 percent over 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.

“While some markets are just beginning to see a turnaround in falling home prices the June 2010 median price in the Capital Area represents the twelfth monthly increase out of the past sixteen months. These increases have not been ‘eye-popping’ but rather have represented modest growth, ” said Linda Nelson, GRI, GREEN, e-PRO, SFR, president of the Capital Area Association of REALTORS. “This is a good thing as this modest growth in price is one of the reasons why our local real estate market is in a much better position than many others. Because our market area didn’t experience a steep increase in price it hasn’t experience the sharp decline that other markets have,” said Linda Nelson.

The number of new listings taken during May of 2010 actually declined over that of the prior May. There were 365 new listings in May of 2010, reflecting a decrease of 20.1 percent from the 457 new listings taken during May of 2009. The 1,573 homes available at the end of May reflected a decrease of 7.8 percent from the same period in 2009. As of June 19th there were 1,658 homes for sale in the Capital Area, reflecting a 5.0 month supply of inventory which suggests a good balance between buyers and sellers.

The average cumulative time on market in May of 2010 plummeted to 79 days, as compared to 120 days during the prior May. The average cumulative time on market for year-to-date through May of 2010 was 99 days, reflecting a marked decrease from the 120 days during the same time period in 2009.

“There is no doubt that the homebuyer tax credits that expired on April 30th contributed to strong activity in the first half of 2010,” said Nelson. “We anticipate an increase in June home sales as we cycle through contracts entered into before April 30th, however, after June there will be a predictable pause in market activity for a period of time. This is illustrated by the 299 sale pendings reported in June 2010, reflecting a decrease of 33 percent from the prior June,” said Nelson. “Local market conditions do remain favorable, however, with a modest inventory, affordable prices and continued low mortgage interest rates. Sales during the second half of the year will be somewhat dependent on the economy and positive job growth,” said Nelson.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.9 percent in May 2010, unchanged from the 4.9 average rate during May 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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