Strong Transition for Housing Market for Summer to Fall
SPRINGFIELD (September 13, 2016) Closed sales, pending sales and median sale price increased while new listings, days on market and months supply of inventory decreased in the Capital Area during August 2016, according to the Capital Area REALTORS® (CAR) Multiple Listing Service.
For the month of August 2016, the median home sale price (for all single-family homes and condominiums) was $132,500, an increase of 10.6 percent from the $119,800 August 2015 price. The year-to-date median price through August of 2016 was $121,200, up 1.8 percent from $119,000 during the prior year. The median is a typical market price where half the homes sold for more, half sold for less.
The number of homes sold in the Capital Area in August of 2016 was 381, an increase of 4.6 percent from 364 during the prior August. The number of home sales year-to-date through August of 2016 was 2,627, reflecting an increase of 1.5 percent over the prior year sales of 2,588.
There were 390 sale pendings in August 2016, up 8.6 percent over the 359 sale pendings during the same time in 2015.
“The transition from the summer market to the fall market appears to be a strong one with an uptick in both closed sales and pending sales as well as the median sale price” said REALTOR Kristie DeBrun, GREEN, GRI, SFR, SRS, president of the organization.
The average cumulative days on market for all home sales in August of 2016 was 77 days, down from 90 days during August of 2015. Year-to-date cumulative days on market was at 85, a 13.2 percent decline from 98 days during the same period in 2015.
According to CAR, the supply of homes on the market currently stands at 4.1 months, down from 4.6 months during August of 2015. The days on market metric measures the number of months it would take to sell the current inventory of available homes at the current pace. Five to six months’ of inventory is considered a balanced market.
"Homes in the $150,000 to $250,000 price range are the most active right now with a mere 2.8 months supply of inventory and an average days on market of 34. Buyers in this range need to make sure their initial offer is compelling, that they are preapproved for financing and should be flexible when it comes to specific terms. Conversely, there is a 7.3 month supply of homes above $250,000. Seller’s in this upper price range need to be make especially sure their home is priced correctly, ready for show, should be flexible on terms and will need to be patient as it will take their home about twice as long to sell,” said DeBrun.
The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 3.44 percent in August 2016, down slightly from the 3.91 average rate during August of 2015.
The Capital Area 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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