October Home Sales Up from September, But Still Down on Annualized Basis
Local home sales closed in October totaled 1,736 units -- off 12.28% from a year ago -- but
1.28% better than September’s 1,714 sales, reports the Cincinnati Area Board of Realtors.
Pending sales reported in the area for October were at the 1,814 level, only 7.78% off that
same mark one year ago, and an 11.36% improvement over September’s 1,629 figure. Pending
sales are accepted contracts that normally close within the next 30 to 45 days.
Nationally, October home sales were off 1.2% from September on a seasonally adjusted
basis, and 20.7% less than a year ago.
Average selling price in the Cincinnati area last month was $166,562, down 2.52% from
$170,868 a year earlier, but 1.20% better than September’s average selling price of $164,579.
The local inventory of unsold homes stands at 9.83 months, an improvement over the
preceding month’s 10.27 figure. A lower number is better. Nationally, it is now 10.8 months. A
balanced market – favorable to buyers and sellers – is 5 to 6 months of inventory.
“Inventory of homes for sale continues to be our major concern,” said Tom Steele, president
of the Cincinnati Realtor Board
of homes for sale compared to the comparable period one year ago is a positive trend toward
improving the inventory-to-buyers situation.”
Steele said that lower mortgage rates are in a buyer’s corner. Rates on a 30-year fixed rate
loan have decreased from 6.46% in October to 6.31% most recently. The rate was 6.40% a year
ago.
Looking at the nationwide subprime mortgage matter – loans made to buyers with marginal
credit -- only 2.7% of these mortgages comprise total mortgage dollars. “Unfortunately, the
housing market nationwide is preoccupied with subprime mortgage headlines,” said Steele. “But
when taken in the overall context of mortgages, subprime is a small part of total mortgage activity.
The housing market -- down somewhat now -- will improve over time as the enlarged inventory
situation shrinks.”
Summary of Single Family and Condominium Sales
Multiple Listing Service of Greater Cincinnati
Cincinnati Area Board of REALTORS
®October Monthly Home Sales
Closings Gross Volume Average Price
Oct. 2007 1,736 $289,151,793 $166,562
Oct. 2006 1,979 $338,148,732 $170,868
Variance -12.28% -14.49% -2.52%
Closings Gross Volume Average Price
Oct. 2007 1,736 $289,151,793 $166,562
Sept. 2007 1,714 $282,087,645 $164,579
Variance +1.28% +2.50% +1.20%
Year-to-Date 2007 Home Sales vs. YTD 2006 Home Sales
Closings Gross Volume Average Price
Jan-Oct. 2007 19,303 $3,374,124,414 $174,798
Jan-Oct. 2006 21,823 $3,904,611,625 $178,922
Variance -11.55% -13.59% -2.30%
. “The fact that we’ve had six straight months of fewer new listings
