May Home Sales

News Release

May Home Sales and Prices Up from April

SPRINGFIELD (June 23, 2009). Both the median single-family home sale price and home sales increased in May 2009 compared to the prior month, according to figures from the Capital Area Association of REALTORS® (CAAR) Multiple Information Service.

For the month of May 2009, the median home sale price (for all single-family homes and condominiums) was $107,000, revealing an increase of 1.9 percent from the $105,000 median price during the previous month of April. The year-to-date median home sale price through May of 2009 was $105,500, up 1.4 percent from the same period in 2008. The May 2009 median price of $107,000 revealed a decrease of 10.0 percent. 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 323 units, reflecting an increase of 12.5 percent from the prior month. Year-to-date home sales through May of 2009 revealed 1,258 unit sales, down 10.0 percent from the same period in 2008. Home sales in May of 2009 were down 20.0 percent from the May of 2008.

According to CAAR president, Nancy Long, ABR, CRS, GRI, today first-time homebuyers make up a larger than usual percentage of our market as they are taking homebuyers make up a larger than usual percentage of our market as they are taking advantage of the $8,000 tax credit and ideal homebuying conditions. "The enthusiasm demonstrated by first-time homebuyers is reflected in the 446 sale pendings for May, which are up 7.5 percent from May of 2008. However, these conditions won't last forever as the $8,000 first-time homebuyer tax credit will expire on December 1, 2009 and low mortgage rates are expected to start inching upward in the weeks to come. Buyers must finalize their purchase by November 30th to be eligible for the first-time homebuyer tax credit which means they need to begin to enter into purchase agreements sooner rather than later," said Long.

The inventory of homes for sale at the end of May was 1,629, reflecting an 18.3 percent decrease from the 1,994 homes for sale during the same time last year. Current inventory levels stand at 1,592 homes which is the lowest level since June of 2005. The current inventory level reflects about a 5.7 month supply at the average sales pace during the past twelve months.

"Even though we are all concerned about the economy, just as Capital Area real estate has fared better than many areas of the country so too has our local job market. With one of the lowest unemployment rates in the state and home values holding steady consumers should be able to purchase with relative confidence," said Long.

"After seeing monthly declines for March and April in the average cumulative days on market we did experience a bit of a reversal of that trend in May," said Long. The time on market for May of 2009 increased to 130 days as compared to 107 during May of 2008. For the year-to-date 2009 the time on market was 122 days as compared to 114 days during this same time in 2008. "In spite of the increase in these numbers, four months plus some change is not an unreasonable period of time to sell a home," said Long.

The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.86 percent in May 2009, down from the 6.04 average rate during May of 2008.

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.