SPRINGFIELD (November 24, 2008). Unit home sales increased while the median single-family home sale price decreased slightly in the Capital Area during October 2008, according to figures from the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of October 2008, the median home sale price (for all single-family homes and condominiums) was $102,900, revealing a decrease of 1.1 percent from the $104,000 October 2007 price. The year-to-date median home sale price through October of 2008 yielded $105,000 which was identical to 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 October amounted to 289 units, reflecting an increase of two units over the 287 sales recorded in October of 2007. Year-to-date home sales through October of 2008 revealed 3,085 unit sales, down 11.5 percent from the 3,482 during the same period in 2007.

According to CAAR president, Nancy Long, ABR, CRS, GRI, October’s positive numbers were an unexpected but welcome surprise. “October’s increase was significant in that October marks the second consecutive month where home sales surpassed that of the same month in the prior year,” said Long.

“Home sales reflected in the September and October numbers were, in large part, consummated prior to the melt down in the financial markets,” said Long. As the full effect of this turmoil takes hold we may see this trend reverse in November and December,” said Long. On the plus side said Long “we are seeing a bit of activity now that the election is over. Hopefully, this will bode well for our year end numbers.”

According to Long, one of the challenges of this real estate market continues to be the high inventory. “We do continue to see some progress with a slowly declining inventory. The inventory of homes available for sale on the market was at its highest point at the end of July 2008 with 2,041 homes for sale. Today, there are 1,896 homes on the market. October marks the sixth straight month in a row where the number of new listings taken in was less than that taken for the same month in the prior year. Specifically, new listings taken in October of 2008 were down 19.5 percent from the same period last year. We still have a long way to go, however, to get back to normal inventory levels” said Long.

The average cumulative days on market (CDOM) for homes that have sold during October of 2008 was 113 as compared to 102 during October of 2007. For the year-to-date 2008 the CDOM was 105 days as compared to 93 days during this same time in 2007.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 6.20 percent in October 2008, down from the 6.38 average rate during October of 2007.

“The biggest misconception out there today is that there is no money available for mortgage loans. That couldn’t be further from the truth. There are several very reputable lending institutions and mortgage brokers in the Capital Area that are standing ready to assist consumers,” says Long.

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.

###

Access related statistical reports here.