Cincinnati Single Family and Condo Sales - June, 2010
The Cincinnati Area Board of Realtors has released numbers for home sales for June, 2010. There were 2,129 units closed in June, a 7.63% gain over June of 2009. Reported sales are largely due to contracts written before April 30th that qualified for the federal tax credits of $8000 or $6500.
Cincinnati's June sales were up slightly compared to May sales (.57%)Nationwide, the number of sales for June were up 9,8% from a year ago but down in number by 5.1% in a seasonally adjusted basis.
Year-to date, closings show positive numbers:
- Sales units +11.94%
- Gross dollar volume sales +21.35%
- Average Sale price +8.41%
Sale prices are up for 2010 to date because fewer foreclosure sales are in early 2010 compared to 2009.
Low interest rates have also influenced sales. A 30-year fixed rate mortgage home loan is now approximately 4.66%, a 39-year low. Last year the rate was 5.61% at the same time. If you are comparing payments on a $100,000 home, that would be a payment that was $52 less. This has spawned a huge increase in refinancings.
The pace of sales has slowed since April 30. Nationally, the number of people filling out loan applications is 40% lower than at the beginning of 2009. It will probably take until November to see the affect of the tax credit shake out and things to return to a more normal market.
Economist, Lawrence Yun, with the National Association of Realtors, says that "Only when jobs are created at a sufficient pace will home sales return in sustainable healthy levels."
