SPRINGFIELD (October 19, 2012) Unit home sales for single-family homes increased while prices also increased in the Capital Area during September 2012, according to the Capital Area Association of REALTORS (CAAR).
For the month of September, the median home sale price (for all single-family homes and condominiums) was $115,000, an increase of 1.8 percent from the September 2011 price of $113,000. The year-to-date median sale price through September of 2012 was 115,000, reflecting an increase of 4.3 percent over the $110,300 price during the same period in 2011. The median is a typical market price where half the homes sold for more, half sold for less.
According to CAAR, 318 homes changed hands in September 2012 as compared to 297 homes sold in August 2011, reflecting a 7.0 percent increase. Year-to-date homes sales through September of 2012 totaled 2,699, reflecting a 9.0 percent increase over the 2,477 sales year-to-date through September of 2011.
September marks the eleventh straight month in a row in which home sales were up over the prior year, said REALTOR Don Cave, president of the Capital Area Association of REALTORS. “This consistent positive momentum is encouraging, however, the employment outlook needs to improve in order for this momentum to sustain itself over the long-term," said Cave. According to the Bureau of Labor Statistics the unemployment rate for Springfield was 7.8 percent while the state of Illinois was 9.1 percent.
There were 326 pending sales at the end of September, a 0.9 percent decrease from the 329 pending sales during the same time a year ago. Pending sales are essentially those contracts that have been entered into between buyer and seller but have not yet closed.
“The consistent increases in the number of homes being sold along with the modest increase in the median values leads me to believe that savvy buyers are comparing the value of owning vs. renting and are realizing that low interest rates and attractive pricing keep monthly payments down. Add the value of a mortgage interest deduction, property tax deduction and the ability to build equity over time and the decision to own comes out on top for those renters who are financially able to purchase a home of their own,” said Cave.
According to CAAR, homes closed in September took a bit longer to sell. The typical home sold in September of 2012 was on the market 110 days before being sold as compared to 105 days the same time last year. The average time on market year-to-date through September of 2012 was 110 days, up from 105 days during the same time period last year.
The number of new residential listings taken in the Capital Area for the month of September 2012 was 433, reflecting an increase of 8.5 percent over the 399 new listings at this time last year. There were 1,742 listings at the end of September 2012, down 2.3 percent from the 1,789 listings at the end of September 2011. As of October 17 there were 1,768 listings on the market reflecting a 6.2 month supply of inventory based on the average monthly sales rate over the past twelve months.
The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 3.47 percent in September 2012, down over a half a percent from the 4.11 average rate during September of 2011.
The Capital Area Association of REALTORS is the Voice for Real Estate in the Capital Area representing nearly 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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