1,272 Homes Sold in December;
Surpasses November Sales
A total of 1,272 homes were sold locally last month, an increase of 8.35% over November’s
1,174 sales. That momentum bodes well for January anticipated closings. Most of January closings are
from sales contracted in December.
Last month’s contracted sales (pendings) are up 1.42% over the level of pending sales one year
earlier. The positive “December-to-November 2008” sales comparison contrasts with the previous year,
when December 2007 home sales trailed previous month sales by 15%.
“Showings in early 2009 are increasing,” said Paul Jacob, president of the Cincinnati Area Board
of Realtors. “More shows ultimately translate into more sales.”
That doesn’t mean the real estate market is about to do a complete turnaround, cautioned Jacob.
“We’re still going through the equation of supply and demand,” he added. “We have 10 months of
inventory to sell, whereas a balanced market between buyers and sellers is about 6 months. When the
supply numbers come closer to demand numbers, you will see a more stable real estate market.”
Jacobs noted that overall 2008 local home sales -- at 18,752 units -- were down 15.8% from 2007
and the average sale price slipped by 6.7%. But he also reported that 2008 marks the 10th consecutive
year that total dollar sales volume exceeded $3 billion ($3.04 billion in 2008).
The overhang of distressed property sales affected overall market activity in 2008. That includes
lender-owned homes and HUD foreclosures. “Take out distressed sales, and we had a pretty good
market last year,” said Jacob.
Jacob reiterated the Realtors “buyers market” message: There is an ample supply of homes for
sale from which to choose, home prices are attractive, and mortgage rates are low.
“Mortgage rates are on sale right now,” said Jacob. “Whoever thought of getting a home loan in
the 5% to 5.5%% range? It’s available now. That hasn’t happened since before 1963.
December 2008 home sales
The Cincinnati Area Board of Realtors notes the following 1981 comparison (when mortgage
rates went through the roof) to 2009 (bargain rates):
Mortgage Monthly Total Interest
Year Rate Payment Over 30 Yrs.
1981 16.9% $1,418 $410,317
2009 5.1% $ 543 $ 95,462
Savings >>> $ 875 $314,855
The National Association of Realtors has committed to spending $42 million in a 2009
advertising campaign, emphasizing that current conditions such as low interest rates and available
properties put many potential home buyers in a position of strength.
“Smart buyers know the ball is in their court,” said Jacob. “They will take advantage of their
edge in buying now when mortgage rates are at super low levels. They have been given a gift.”
Summary of Single Family and Condominium Sales
Multiple Listing Service of Greater Cincinnati
Cincinnati Area Board of REALTORS
December Monthly Home Sales
Closings Gross Volume Average Price
Dec. 2008 1,272 $180,000,509 $141,510
Dec. 2007 1,356 $232,303,829 $171,316
Variance -6.19% -22.52% -17.40%
Yearly Home Sales
Closings Gross Volume Average Price
Jan-Dec. 2008 18,752 $3,044,201,257 $162,340
Jan-Dec. 2007 22,265 $3,873,808,153 $173,986
Variance -15.78% -21.42% -6.69%
30-Year Fixed Rate Mortgage (local)
December 2007 (average) 6.18%
December 2008 (average) 5.43%
Most recent (Jan. 21, 2009) 5.41%
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