January 2012 Cincinnati Market Update

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Real estate trends of the past are the most telling prediction of what is to come in the future – leaving aside catastrophic events such as the 2007 mortgage subprime crisis or the robo-signing scandal that broke out in 2011.  But for the most part as long as things are quiet we can tell where the market seems to be heading.

Sales and Inventory – Up From Previous Year

Year over year sales numbers were reported almost as much as twenty five percent up from the previous year.  This is great news for us! Similarly, based on MLS statistics our inventory is also up about 25% from the same period of time as last year.

Housing Prices Still Declining

Though our sales were up and inventory was also up, housing prices dipped about 10% year over year.  Even though buyers are enjoying this aspect of the property market, declining home prices continues to create a challenging situation for sellers.

Interest Rates Still At or Near All-Time Lows

Nationally, as well as locally, we have seen all-time low interest rates that have continued to provide welcome relief to many homeowners looking to have more affordable monthly payments through refinancing.  This has also been an ideal time for first-time homebuyers to be able to get into a new home that they may not have been able to do in any other economy.

Lenders Control a Fourth of the Market

Focusing on active inventory, we are reporting about 24% control by lenders.  More than one third (36%) of properties that are sold fall under the category or either short sales or REO properties.

Pending Sales Figures Up From Previous Year

Again, we are seeing an upward trend with pending sales numbers comparing this year’s sales with the previous year’s figures.  A nearly 8% increase in pending sales points to a long-awaited positive upward swing in the future.

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Looking ahead it seems that 2012 will be a strong year for sales, we will continue to see existing inventory move and buyers will likely continue seizing opportunities available to them.  Government programs will remain in action and we will likely see fewer new foreclosures with more loan modification situations taking place.  Prices will continue to decline slightly but both prices and interest rates will not change during this year.

If you have any questions or would like to learn more about how our market is performing – please give us a call and we’d be happy to share the latest numbers with you!