An end in site?

For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®. And Cincinnati is no exception. Locally home sales (for the second month in a row) – topped sales from a year ago. Realtors sold 1,984 homes in July compared to 1,866 the previous July, for a 6.3% gain. In June, the year-over-year improvement was 1.3%.

What you may ask is driving these sales? To me it seems to be the current 8,000 Federal tax incentive to first time home buyers and buyers who haven’t owned a home in 3 years. This tax credit which is set to expire Nov 30 really seems to be pushing buyers to act quickly. This in conjunction with the low interest rates we are seeing these days (which now average 5.45% for a 30-year fixed-rate loan, compared to 6.68% a year ago). Its a perfect opportunity for people to get into a home at an affordable price with affordable payments.

Here’s the data:

Previous Month Home Sales Comparison

Closings       Gross Volume       Average Price

July 2009           1,984             $325,871,651          $164,250

June 2009          1,965             $323,555,305          $164,659

Variance           +1.01%              +0.01%                   -.25%

June Monthly Home Sales

Closings        Gross Volume      Average Price

July 2009           1,984              $325,871,651         $164,250

July 2008           1,866              $337,803,003         $181,031

Variance          +6.32%                   -3.53%              -9.27%

Year-to-Date Home Sales

Closings        Gross Volume      Average Price

Jan-July 2009    10,455         $1,556,542,759          $148,880

Jan-July 2008    11,390         $1,913,760,065          $168,021

Variance            -8.21%             -18.67%                -11.39%