How's the real estate market in Greater Cincinnati? The Cincinnati real estate market has slowed significantly from the record-setting year of 2005. But we are beginning to see positive signs of improvement.   A month-to-month comparison of homes sold in 2009 vs. 2008 is provided here and shows market conditions for home sales in Greater Cincinnati improving steadily over the last seven months. December, 2009 saw a 9.2% increase in average sale price over Dec 2008, and a 17% increase in median sale price. In Cincinnati, 2005 was a record-setting year for the number of residential homes sold; and, sale prices in most neighborhoods peaked early in 2006.  The chart below looks at the past five years of Cincinnati real estate sales in 12-month increments ending 12/31/09.  Both average sale price (ASP) and median sale price (MSP) have been in a steady decline for the past three years.  Whereas home values have decreased, both the ASP and MSP are distorted by the increased number of foreclosures (27% of properties sold in the past 12 months); and, since January's passage of the Stimulus Bill, the greater percentage of sales to first-time homebuyers taking advantage of the $8,000 tax credit.  Both these factors drag down the ASP and MSP.

Is it a good time to purchase?     Yes!  Current conditions in the Cincinnati real estate market make it a good time to purchase a home: prices are down significantly, there’s a good supply of homes for sale, mortgage rates are mortgage rates are historically low and Cincinnati has a solid history of steady appreciation over time.  The current market conditions equal good opportunities for home buyers. Coupled with the extended & expanded Home Buyer Tax Credit for first-time & long-time homebuyers, there may not be a better time to purchase a home.

 

Market conditions & statistics for individual neighborhoods within Greater Cincinnati vary greatly. Contact Gayle Moore, RE/MAX Preferred Group, to request updated stats for a specific neighborhood(s). Historically, our overall housing market in Greater Cincinnati experiences a 3-4% annual rate of appreciation. The past 4 years have been an exception.