SPRINGFIELD (June 26, 2008). The median single-family home sale price increased slightly while unit home sales were nearly unchanged in the Capital Area during May 2008, according to figures from the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of May 2008, the median home sale price (for all single-family homes and condominiums) was $115,000, revealing an increase of 2.7 percent over the $112,000 May 2007 price. The year-to-date median home sale price through May of 2008 yielded $103,500, up 4.5 percent over the same period in 2007. The median is a typical market price where half the homes sold for more, half sold for less.

Home sales in the Capital Area during the month of May amounted to 401 units, nearly equaling the 404 home sales recorded in May of 2007. Year-to-date home sales through May of 2008 revealed 1,395 unit sales, down 15.9 percent from the same period in 2007.

“I cannot emphasize enough the importance of sellers making sure that their home is priced competitively from the start,” said Chiles. “If a home is over priced relative to other homes the buyer is unlikely to waste their time on it since there will be several more homes just like it priced more favorably. In the meantime, the seller has lost valuable marketing time, as they are forced to wait for the next pool of buyers to develop. For this reason, it is critical that home sellers seek out the advice a professional in arriving at their asking price,” said Chiles.

The inventory of homes for sale at the end of May was 1,909, reflecting a 3.9 percent increase from the 1,838 homes for sale during the same time last year. Inventory is at its highest level for this time of year. Current inventory levels reflect a 6.0 month supply of inventory at sales pace for the past twelve months.

According to CAAR president, Philip Chiles, ABR, GRI, our current market is particularly good for first-time buyers as well as trade-up buyers. “First-time buyers have a near unprecedented level of homes to choose from while, at the same time, sellers in all price ranges are under pressure to price their homes competitively. Although a trade-up buyer may not yield as much for his home as he would like he should expect to make that up when ‘buying up’ in the market,” said Chiles.

The average cumulative days on market (CDOM) for homes that have sold during May of 2008 was 110 as compared to 103 during May of 2007. For the year-to-date 2008 the CDOM was 115 days as compared to 100 days during this same time in 2007. “Those buyers who continue to wait expecting conditions to get even better may be disappointed if rates should continue to rise,” said Chiles.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.04 percent in May 2008, down from the 6.26 average rate during May of 2007.

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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