SPRINGFIELD (February 9, 2012) SPRINGFIELD (February 9, 2012) According to the Capital Area Association of REALTORS (CAAR) sales of single-family homes (including townhomes and condominiums) decreased during the fourth quarter while the median home sale price remained unchanged.
There were 741 homes sold during the fourth quarter of 2011, reflecting a 3.4 percent decrease from the 2010 fourth quarter home sales of 767. For 2011 there were 3,218 home sales in the Capital area, reflecting a decrease of 6.5 percent from the 3,441 sales recorded in 2010. The Capital area median existing single-family home sale price for the fourth quarter of 2011 was $105,000, remaining unchanged from the prior year’s fourth quarter price of $105,000. The median price for 2011 was $110,000, reflecting an increase of 0.1 percent over the 2010 price of $109,900. The median is the midpoint in the price range; half the homes sold cost more, half cost less.
CAAR President Todd Musso, SFR, GRI, said the real estate market in the Capital Area can be characterized as a healthy market. “While it is true that home sales are trending at 10-year lows it is a balanced market. While there is ample supply for prospective buyers we are not oversupplied. This balance between supply and demand has helped contribute to stability in our median home sale price. At the same time, we have very affordable housing stock and the lowest mortgage rates in over 50 years” said Musso.
Despite what has been a difficult real estate market the last two years, real estate professionals continue to produce a large volume of closed transactions according to the CAAR.
During the last two years combined REALTORS closed over $845 million in transactions through CAAR. Total dollar volume of CAAR home sales in 2011 was $409.1 million reflecting a 6.2 percent decrease from the $436.0 million in 2010.
“We suspect that there is growing pent-up demand out there. This demand coupled with increasing price pressure on rents will likely result in more and more renters doing the math and learning that in many cases they can buy for the same amount of money, or less, then it would cost them to rent,” added Musso.
The inventory of homes listed for sale at the end of December 2011 was 1,415, reflecting a 2.5 percent decrease from the 1,451 listings during December of 2010 and was at its lowest point in over five years. Current inventory levels stand at 1,454 homes and reflects a 5.4 month supply at the average monthly sales pace for the past twelve months.
The number of sales pending at the end of December 2011 was 224, reflecting an 8.7 percent increase over the 206 sales pending at the same time in 2010. “This is an encouraging sign and may help to underscore my earlier claim that there is pent-up demand in the markeplace. This increase in pendings should reflect an increase in February sales,” said Musso.
The average cumulative days on market during the 4th Quarter of 2011 was 107 days, as compared to 105 days during the same period in 2010. The average cumulative days on market for in 2011 was 105 as compared to 99 in 2010.
The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.0 percent during the 4Q of 2011, down significantly from the 4.41 average rate during the 4Q of 2010. For 2011 the average rate was 4.45 percent, down from the 4.69 percent the prior year.
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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