I received the following press release from the Cincinnati Area Board of Realtors this week. Although our real estate market is off for the year, we are gradually making progress. At the beginning of the year we had more than twice the number of homes on the market than we normally have for a balanced market. The number of homes on the market has been coming down each month as you will see in the press release. As long as fuel prices continue to rise, I expect the Cincinnati real estate market will continue to be slow. Its going to take a while for things to totally recover. We are doing much better than many markets across the country.
Interest rates remain low and there are some great deals on real estate. If you are thinking of buying, it is a good time. Call us for more information on the Cincinnati area real estate market and see how we can help you.
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Press Release
Cincinnati Area Board of Realtors®
June 26, 2008
Contact: Karen Schlosser, President, 489-5440 (office), 702-6285 [cell]
Gene Snavley, Executive VP, 543-2211 [cell]
1,913 Homes Sold in May;
Up 4 Consecutive Months
Riddle: What is 57 and 398 and 1,724 with regard to real estate?
Answer: It’s the number of homes sold through the Multiple Listing Service of Greater Cincinnati every day, week and month for the past one year. “Who says that homes aren’t selling?”, commented Karen Schlosser, president of the Cincinnati Area Board of Realtors.
Local Realtors sold 1,913 homes last month, marking the fourth consecutive month of increased sales this year. The inventory of unsold homes also improved, shrinking to 8.38 months compared to 9.49 months in April, 9.75 months in March, 11.32 months in February and 13.31 months in January.
Months of
2008 Home Sales Inventory
January 1,130 13.31
February 1,334 11.32
March 1,557 9.75
April 1,636 9.49
May 1,913 8.38
Nationwide, May home sales seasonally adjusted were up 2% from April. They were off 15.9% from a year ago.
“The reduction in inventory of homes for sale is paving the way for a balanced market of five to six months of unsold homes,” said Schlosser. “It won’t happen over the next 30 days, but clearly we’re headed in the right direction.”
The average price of a home sold in May was $168,833. That compares to $152,419 the previous month and $176,726 a year earlier.
The local housing affordability index is 216%. An index of 100% means a family with a median income can afford to buy a median-priced home with a 20% down payment and a 6.35% mortgage. Anything over 100% is favorable. In Ohio, the affordability index is 188%. Nationally, it is 132%. The higher the number, the better. “Thus, greater Cincinnati is looking good,” says Schlosser.
The average local mortgage interest rate last month for a fixed-rate loan was 6.24%. That compares to 6.28% one year earlier. It’s now 6.66%. “Mortgage rates are still a bargain,” commented Schlosser.
Summary of Single Family and Condominium Sales
Multiple Listing Service of Greater Cincinnati
Cincinnati Area Board of REALTORS®
May Monthly Home Sales
Closings Gross Volume Average Price
May 2008 1,913 $322,976,587 $168,833
May 2007 2,334 $412,479,377 $176,726
Variance -18.04% -21.70% -4.47%
Year-to-Date Home Sales
Closings Gross Volume Average Price
Jan-May 2008 7,570 $1,206,920,694 $159,435
Jan-May 2007 9,139 $1,547,733,039 $169,355
Variance -17.17% -22.02% -5.86%