Cincinnati MLS Real Estate Information

Home Sales in March Off Slightly
Using 3-Year Rolling Average

            Local home sales – even without the benefit of a tax credit program from a year ago – did relatively well last month.

            March sales totaled 1,477 homes.  Using the recent 3-year March average of 1,487 sales, activity last month was off only 0.7%.  Comparing March 2011 to March 2010, sales were off 7.34%.

            March 2009     1,389
            March 2010     1,594 (increase was influenced by a tax credit incentive for home buyers)
            March 2011     1,477
               3-year avg.   1,487

            Statewide, housing sales were off during the first quarter of this year compared to the similar period in 2010.  That’s due largely to Ohio’s first-quarter unemployment rate of 9.6%.   That said, Cincinnati still beat the other three major market areas in Ohio housing sales during the 2011 vs. 2010 quarterly comparison:

            Cincinnati                -1.65%
            Dayton                     -6.64%
            Columbus                 -7.28%
            Cleveland/Akron       -8.97% 

            All of Ohio                 -4.96%

            “Low mortgage interest rates are still in a buyer’s favor,” said Pete Kopf, president of the Cincinnati Area Board of Realtors.  A 30-year fixed rate loan this week averaged 4.91%.  That compares to 5.25% one year ago.  “Lower mortgage rates have a definite impact on housing affordability,” said Kopf.

             A recent Cincinnati-vs.-USA comparison shows that local home buyers have 49% more buying power than the average national buyer.  That takes into consideration median income, housing prices and monthly mortgage payment.  Cincinnati was favored in all three metrics.

             In addition, the local unemployment rate last month dropped to 8.9%, the best reading since January 2008.  The number of people without jobs in the 15-county region dropped below 100,000 for the first time in 25 months.   “These are positive trends that should help boost the local economy and housing market,” said Kopf.

            Kopf said that spring buying is in full gear with an ample housing inventory, but admitted that bank lending (qualification) standards have tightened somewhat. 

           “If you can jump through the hoops to get a mortgage – and there will be hoops -- then this is an amazing time to purchase real estate,” said Robert Stein, the former head of the Treasury Department’s Office of Economic Policy.  “There are going to be a lot of people kicking themselves a few years from now because they didn’t take advantage of the low (housing) prices and low mortgage rates.”

Summary of Single Family and Condominium Sales
Multiple Listing Service of Greater Cincinnati
Cincinnati Area Board of Realtors®

 March Home Sales

                                                             Closings          Gross Volume         Average Price          

                        Mar. 2011                     1,477              $196,844,235              $133,273
                        Mar. 2010                     1,594              $242,809,644              $152,327        

                                   Variance           -7.34%                       -18.93%               -12.51%

 Year-to-Date Home Sales 

                                                            Closings          Gross Volume          Average Price
                      Jan-Mar. 2011                3,345             $463,232,363             $138,485          
                      Jan-Mar. 2010                3,401             $513,353,534             $150,942        

                                     Variance            -1.65%                        -9.76%                -8.25%

 Nationwide, March home sales were up 3.7% from February on a seasonally adjusted basis, but down 6.3% from March 2010.

This Cincinnati Real Estate Update is compliments of the Cincinnati Area Board of Realtors 4/20/2011. 

Whether you rent or buy, you pay for the house you occupy. You must live somewhere and there's a price to pay for it. A simple analysis will show you whether it's cheaper to rent or buy.

Some people don't have any choice but to rent because they don't have the means to qualify for a loan. But for those who do have a down payment and good credit, they actually have a choice of whether to rent or buy. In some cases, owning will cost significantly less than renting.

Rentals are in high demand in many markets and rents are going up. People who have experienced foreclosures and short sales have increased the demand for rentals. The first comparison a discerning buyer needs to make is whether the house payment is lower than what they'd have to pay in rent.

The next comparison needs to consider the other benefits that accrue to an owner such as principal reduction, appreciation and tax savings. These can dramatically weigh in favor of owning rather than renting.

Tenants have made the decision to buy a home. The decision currently facing them is whether to buy it for themselves or their landlord.  Call Jason Bowman, Cincinnati's Real Estate Resource to weigh your options of whether renting or buying in the Greater Cincinnati Area is the right choice for you.  My Team specializes in helping 1st time homebuyer's realize the dream of homeownership.

Most FHA loans have monthly mortgage insurance required that must stay in force until the unpaid balance is reduced to 78% of the original sales price.  It would take about 10.5 to 12.7 years of normal amortization for loans with rates of 5% to 7% to reach that level.

As an example, a $175,000 home with a 5% mortgage for 30 years would have monthly mortgage premium of $163.46.  This is eliminated when the unpaid balance reaches $136,500 which is 78% of $175,000.  It can do that with normal amortization which would take about 10.7 years.

A faster way to reach that target balance would be to pre-pay the mortgage by making regular additional principal contributions or single lump sums.  In the example used above, if a person made an additional $100 principal contribution with each payment, the 78% level would be reached in 7 years 8 months compared to the 10.55 with normal amortization.

If a person would increase their principal contribution by a little less that $300 a month, the need for the MIP would be eliminated at the end of five years which is the minimum amount of time it must stay in place for most FHA loans.

The benefits of making additional principal contributions will be to build equity faster, lower overall interest that you'll pay and shorten the time that you'll be required to pay the costly mortgage insurance.  It will be necessary for the borrower to notify FHA when the target date has been reached if accelerating the amortization.

If you’re interested in developing a strategy to shorten the time your MIP is required on your loan, I can provide this type of analysis for you at no charge or obligation.  Call me, Cincinnati's Real Estate Resource, today at 513-766-0647.  I can send you a personalized analysis on how you can lower your FHA Mortgage Payment and build equity faster.

This weekend, the Cincinnati Area Board of Realtors and the Northern Kentucky Board of Realtors are teaming up to hold nearly 3,000 homes open for buyers.  This presents a tremendous opportunity to see what is available in today's marketplace.  Interest rates are low, Welcome Home Grants are available to qualified buyers, and sellers are motivated to work with your offer.  If a new home is in your plans for 2011, you should get out this weekend to take advantage of this historic buying opportunity.

Use this link to search all open house events in the Cincinnati Area: 

Search All Cincy Open Houses!!

Here are some of the featured homes that will be held open.

Many Greater Cincinnati and Northern Kentucky homeowners are overlooking an opportunity to lower their property taxes by not challenging their tax assessment.  Property values have decreased in the past two to three years and the assessment may not reflect the current market value.

Deadlines are critical and if the challenge isn't made in a timely fashion, the opportunity to lower the assessment can be lost for the year.  You'll need to verify the deadlines for your area by visiting the Auditor's website for your respective county.  Or, use the quicklinks below:

Hamilton County:  http://www.hamiltoncountyauditor.org/pdf/borform.pdf
Clermont County:  http://www.clermontauditor.org/BORRealProp.pdf
Butler County:  http://www.butlercountyauditor.org/content/images/BOR_2010.pdf
Warren County:  http://www.co.warren.oh.us/auditor/realestate/forms/dte1.pdf

The process for the challenge is relatively simple and can be done by a homeowner or by professional representation.  In some cases, if there is an obvious mistake, the state employee may be able to correct it without a hearing.

Check the property assessment record for common mistakes that can include the number of bedrooms, baths, lot size and square footage of the improvements.  Documentation is required to verify the errors.  If you have an appraisal, such as when you purchased the home, it can serve as proof of the discrepancy.

In other cases, a hearing is required before a panel of citizens who will listen to testimony from the taxpayer and a representative of the assessor's office.  Based on the documentation presented, the panel will make a ruling to lower the value, make no change or in some cases, raise the valuation.

Recently closed comparables are the most common proof presented in a hearing.  Comparables should be similar in size, condition and location.  A knowledgeable real estate professional can filter the results generated in a MLS search to identify the most appropriate.

I’m prepared to supply the comparables, filing deadlines and other pertinent information you need to make a challenge.  Lowering your assessment will result in lower property taxes and more money in your pocket.  Call me, Jason Bowman, today at 513-766-0647 - I am here to help.

This is no April Fools Joke, there are two major timelines that Cincinnati and Northern Kentucky First Time Homebuyers need to be aware of as the month of March comes to a close.  The first one is huge.  We still have one local lender that has Welcome Home Grant Funds available.  This program offers home buyers who meet the income guidelines a $5,000 grant that can be used for down payment or closing costs.  You do not have to pay this grant back as long as you live in the home for five years.  Most lenders have already run out of their welcome home funds, but our local connection still has funds to give out.  Give us a quick call and we can get you where you need to go to see if you qualify.

The second issue surrounds buyers that will be using a FHA mortgage in their next home purchase.  The Department of Housing and Urban Development is increasing the monthly mortgage insurance factor for FHA loans that offer a down payment of less than 5%.   This MIP increase will translate into an approximate increase of $40 per month for a borrower taking out a $200,000 FHA mortgage.  To avoid this mortgage payment increase, your lender will need to establish your FHA case number before April 18^th to stop the clock. This issue really affects everyone as over 65% of purchase mortgages originated last year were FHA loans.

Welcome Home funds are available for a limited time only.  For both of these time sensitive issues, you will want to secure a contract on the home you wish to purchase in the first two weeks of April. 

There's more to finding the "Right" home than driving around looking at houses.  The Jason Bowman Team can help you make better decisions to help you understand the tax advantages, financing alternatives and investment aspects of homeownership.

Call 513-766-0647 or email eTeam@JJBowman.com

It is now official....this motivated seller is hoping to relocate West and has now made his Indian Hill home available in the Cincinnati MLS.  It is safe to say that this seller is not getting a relocation package from his current employer, Mike Brown and the Cincinnati Bengals.  If you are in the market to spend 2.1 million on your next home purchase, then you can own the home that was built by the Bengal's number one draft pick in 2002.  The Carson Palmer estate boasts a first floor master suite, first floor and lower level wet bars, a spa, and even a putting green.  Situated on 5 acres at the end of Whispering Hill Drive,  this 5600 square foot custom built piece of sports memorabilia could be a great value for next owner. 

Click Here to View Carson Palmer's Listing!

Great Jumbo Loan programs are finally coming in Greater Cincinnati and Northern Kentucky.  Now is the perfect time to take advantage of fantastic pricing in Cincy's Luxury market.  Call or email The Jason Bowman Team today to start viewing properties that are of interest to you.  Jason Bowman at RE/MAX Elite  513-766-0647 -or- Jason@JJBowman.com

Besides the obvious Federal Income Tax deadline which is April 18th this year, the deadline for individuals who can qualify for the Homebuyers Tax Credit is quickly approaching - April 30, 2011.

The extension was granted for members of the military, Intelligence and Foreign Service who have served outside of the U.S. for at least 90 days between January 1, 2009 and May 1, 2010.  The purchase contract must be signed by all parties by April 30, 2011 and closed by June 30, 2011.

Qualifying taxpayers may be eligible for either the first-time credit of $8,000 or the current homeowner credit of $6,500.  To get additional information from IRS.gov, click here.

This is a wonderful opportunity for a person to have a home of their own, to raise their family, share with their friends and feel safe and secure.  The Cincinnati Real Estate Market is ripe with advantages for buyers who can afford it.  Prices of homes in the Greater Cincinnati Area have come down considerably in the last two to three years.  Interest rates are at an almost all-time low but are expected to rise soon.  The selection of homes in the Cincinnati Area is good which allows buyers to find the home that meets their needs.

A qualifying veteran with eligibility could get into a home with no down payment, no closing costs if paid by the seller and the tax credit.  These tax credits are refundable which means that any amount that isn't used to offset tax liability will be refunded to the taxpayer in a check.  You're practically being paid to buy a home.

There probably will never be this combination of advantages available for buyers who qualify.  Don't miss this opportunity.  You owe it to yourself and your family to see that it may actually cost you less to own than to rent and what it will take to get into a home.  Call The Jason Bowman Team at 513-766-0647 today to find out how you can buy a home in the Greater Cincinnati Area with little or no money down and take advantage of this tax credit before it expires on April 30, 2011.

Home Sales Up 1.90% in February;
Year-to-Date Sales Up 2.82%

Local home sales in February – for the second consecutive month – improved over a year ago.  Sales last month totaled 963 compared to 945 in February from a year ago, for a 1.9% improvement.

In addition, the February 2011 sales figure is 7.6% ahead of January sales (963 vs.895)

Year-to-date home sales (counting January and February) are up 2.82% over the similar 2-month period a year ago (1,858 vs. 1,807).

The Cincinnati-area housing market, with a gain in sales, was one of the top metro areas in the state last month. The Cleveland/Akron, Columbus and Toledo markets saw a decrease in sales.

“Real estate is always a local issue, and the fact that Cincinnati posted gains for the month shows the relative health of our region,” said Pete Kopf, president of the Cincinnati Area Board of Realtors.

Kopf cited three primary reasons why sales, in general, are on the upswing:

1)      Buyers’ concerns that if home mortgage rates increase later in 2011, it is smarter to lock in attractive rates now instead of waiting for higher costs as the year progresses. A 30-year fixed rate loan slipped to 4.85% last week, but that isn’t expected to last through the summer.

2)      Rent increases currently going on are making renters realize the tax benefits they could receive with home ownership compared to no tax benefits in renting. [Mortgage interest costs and property taxes are deductible on federal income tax returns for home owners.]

3)      There currently is an ample inventory of homes to choose from, which offers attractive buying opportunities at all price levels.

More home showings are happening early this year,” said Kopf. “That’s a positive sign the housing market has stabilized and the pent-up demand for homes is being handled successfully.”

Summary of Single Family and Condominium Sales
Multiple Listing Service of Greater Cincinnati
Cincinnati Area Board of Realtors®
February Home Sales

Year-to-Date Home Sales 

Nationwide, February home sales were down 9.6% from January on a seasonally adjusted basis, and down 2.8% from February 2010.

Information compliments of the Cincinnati Area Board of Realtors.

Since 2004, the maximum VA loan is the same as the maximum FNMA mortgage which is currently $417,000.  Occasionally, a Cincinnati area Veteran wants a loan in excess of that amount.  If the Veteran will put a 25% down payment on the excess amount, a lender will loan the other 75%.

Example
Sales Price                                                         $475,000
Maximum VA Loan                                              $417,000
Excess Amount                                                   $ 58,000
25% Required Down Payment on Excess              $ 14,500
Adjusted Loan                                                    $460,500

VA loans are eligible for veterans of the military with a certificate of eligibility in both Cincinnati and Northern Kentucky.  A Veteran can get a 100% loan up to the maximum VA loan amount and the seller can pay their closing costs which would allow a Vet to get into a home with no down payment and no closing costs.  The VA Funding Fee can be rolled into the mortgage or paid by the Seller.

When the Vet sells the home, their VA loan is assumable at the existing interest rates but does require qualification of the new buyer.  The benefits would be a possible lower interest rate and lower closing costs. 

There's more to finding the "Right" home than driving around looking at houses.  The Jason Bowman Team can help you make better decisions to help you understand the tax advantages, financing alternatives and investment aspects of homeownership.

Call 513-766-0647 or email eTeam@JJBowman.com