Sales Activity Continues on the Upswing

Cincinnati real estate sales have continued to see improvement. October statistics show a 15% increase in the number of homes sold compared to October of 2008.  Nationally, that number is even higher, 23%. Cincinnati Number of Homes sold - October 2009

First time buyers get credit as the primary drivers of this upswing.  Other factors are the availability of larger than normal numbers of homes and the favorable interest rates.  Rates have continued to stay in the 5% range, third lowest on record dating back to 1971.

Additionally, prices have started to show signs of stabilizing as consumer confidence improves and unemployment numbers are slowing.  Currently, for the entire area serviced by the Cincinnati Multiple Listing Service, there are 7.48 months of inventory, compared to 10.28 months a year ago.  That's a significant improvement.

Overall, prices are down 2% in October compared to October, 2008 and 8.6% since January.  Nationally, median prices are 7.1% lower than October, 2008. The Midwest was the only area of the country experiencing a gain in median price this month, a 1.1% improvement.

The National Association of Realtors reports that the typical family's buying power is better than any time on record, since 1970 when the statistic was first tracked.

What does 2010 Hold?

Generally, Realtors are optimistic heading into 2010.  With the extension of the Homebuyers Federal Tax credit for first time buyers and the expansion to include second and third-time buyers, sales are expected to continue to be brisk in the winter months.  I expect many new listings in the early months of the year, sellers who would have probably waited until May to list. 

That should bode well for those of you ready to make a first time purchase or buy a larger (or smaller) home!  Give us a call so you can start regularly hearing about new listings on the market and take advantage of this government incentive.