SPRINGFIELD (May 19, 2011) Unit home sales for single-family homes decreased while the median home sale price also decreased in the Capital Area during April 2011, according to the Capital Area Association of REALTORS (CAAR).
For the month of April 2011, the median home sale price (for all single-family homes and condominiums) was $105,000, a decrease of 0.9 percent from the April 2010 price of $106,000. The year-to-date median sale price through April of 2011 was 102,500, reflecting a decrease of 2.4 percent from the $105,000 price during same period in 2010. The median is a typical market price where half the homes sold for more, half sold for less.
According to CAAR, there were a total of 278 homes sold in April 2011 as compared to 393 homes sold in April 2010, reflecting a 29.3 percent decrease. Year-to-date homes sales through April of 2011 totaled 866, reflecting a 20.3 percent decrease from the 1,086 sales in April of 2010.
“While the median sale price of $105,00 demonstrated a decline in April it did equal the 2009 price which was the second highest on record,” said REALTOR Terry Nuding, ABR, CRS, GRI, SFR president of the Capital Area Association of REALTORS. “Given our current market activity I am extremely pleased with the way in which our prices have held up on the whole. In spite of the fact that our sales activity is down and our inventory and time on market are both up our year-to-date price is down a mere 2.4 percent over the same time last year,” said Nuding.
“I would caution those prospective homebuyers who are holding back waiting for conditions to become more favorable. I don’t see any measurable improvement for homebuying conditions. For serious homebuyers, now is the time to be making your move,” said Nuding.
According to Nuding, CAAR is forecasting that unit sales will continue to decline through at least May as suggested by current sale pending numbers. “Specifically, for April 2011 there were 426 sale pendings, reflecting a decrease of more than 33 percent from the 639 sale pendings during the prior April. Generally, sale pending figures will impact the unit sales figures four to six weeks later. However, I wouldn’t rule out the year-over-year sales rate turning positive in July, which is when the effect of the homebuyer tax credit will have pretty well faded out,” said Nuding.
The number of homes listed for sale in the Capital area at the end of April of thsi year was 1,543, reflecting a 5.1 percent decline from the 1,626 listings at the end of April 2010. However, as of May 18th the number of listings stood at 1,643. Although listings are declining inventory is increasing. Today, we are at a 6.1 month supply of inventory based on the average monthly sales rate which is upward trending but still considered a balanced market.
According to Nuding, inventory jumped from a 5.7 month supply last month to a 6.1 month supply this month. “Our inventory levels are very manageable as compared to nationwide where inventory rests at about 10-11 months. Although our inventory situation has increased, in certain areas and in certain price ranges, you are actually seeing multiple offers,” said Nuding.
The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages was 4.84 percent in April 2011, down slightly from the 5.1 average rate during April of 2010.
The Capital Area Association of 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.
