| Existing Home Sales Rose 5% in December:
Home sales rose in December to the highest pace in nearly a year. The gain coincides with other signs that show the troubled housing market improved at the end of last year. The National Association of Realtors said Friday that sales increased 5 percent last month to a seasonally adjusted annual rate of 4.61 million, the best level since January 2011 and the third straight monthly increase. Sales are increasing at a time when the market is flashing other positive signs. Mortgage rates are at record-low levels. Homebuilders have grown slightly less pessimistic because more people are saying they might be open to buying a home this year. And home construction picked up in the final quarter of last year. The median sales price rose 2.3 percent to $164,500 in December. |
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What Happened to Rates Last Week?
Mortgage backed securities (MBS) lost -91 basis points from last Friday to the prior Friday which moved mortgage rates upward. |
| What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. I will be watching these reports closely for you and let you know if there are any big surprises: Courtesy of Stephanie Halpin Fairway Mortgage |
Mortgage and Housing sales data update
June 2011 Cincinnati Home sales report
Home Sales Reach 1,781 in June;
Median Sale Price Inches Up 1.5%
Thanks to continued low mortgage interest rates and overall housing affordability, there were 1,781 home buyers last month in the local area.
That’s down 17% from a year ago, but at that time there was a $6,500 to $8,000 federal income tax credit for qualified home buyers. That boosted sales in June 2010.
Pete Kopf, president of the Cincinnati Area Board of Realtors, said “Considering there is no home tax credit this year and a 9% unemployment rate, we think that having 1,781 home buyers last month is a testament to the belief that home ownership is a good thing in the public’s minds.”
The average home sale price last month was $166,303, only a 3% dip from a year ago. The median sale price actually rose by 1.5%, to $132,000. The median price is the mid-point in the overall price range of sales.
Mortgage rates have held below 5% this year. They averaged 4.59% in June, compared to 4.78% a year earlier. Lower rates and attractively-priced inventory help home affordability, due to lower monthly mortgage payments.
Another advantage for home owners, as usual, is the deductibility of mortgage interest and property taxes from their taxable income. That means they pay less in federal income taxes. Renters don’t get that advantage. A homeowner also realizes – eventually – that their house will be fully paid for, which is great for retirement planning. Renters never have a residence that is paid for, which could be a detriment to retirement years.
“Smart buying is going on today — 1,781 home buyers proved that just last month,” said Kopf. “With home affordability at a record high (dating back to 1970), the smart trend of home buying will continue.”
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June Home Sales
Summary of Single Family and Condominium Sales
Multiple Listing Service of Greater Cincinnati
Cincinnati Area Board of Realtors®
June Home Sales
Closings Gross Volume Average Price
June 2011 1,781 $296,185,643 $166,303
June 2010 2,156 $369,717,348 $171,483
Variance -17.39% -19.89% -3.02%
Year-to-Date Home Sales
Closings Gross Volume Average Price
Jan-June 2011 8,222 $1,218,105,744 $148,152
Jan-June 2010 9,559 $1,503,391,725 $157,275
Variance -13.99% -18.98% -5.80%
Nationwide, June home sales were down 0.8% from May on a seasonally
adjusted basis, and down 8.8% from June 2010. Sales surged in May and
June of 2010 in response to the home buyer tax credit.
Creating leverage in the current Real Estate market (Jan 2011)
If you havent noticed through our media outlets, Cooper Consulting Group and The Home Finder Network have been slammed with Real Estate business recently. Clients by the dozens, of all kinds in all areas have been phoning and emailing us with requests for help. To paint a picture of why, is what we are here to examine and explain.
Historically the December market place is slow for many, for us it was a very busy time. We experienced 3 closings, 4 contract terms on our listings delivered, negotiated and slotted to close in the early 1st quarter of 2011. Over a half-dozen new buyers have jumped the over the fence, entered the shopping market and are prepared to deliver purchase terms within the month. All of this at once can be pointed to several market conditions.
Leverage for Sellers:
The position for sellers right now is the lack of inventory in our market place, especially through the months of December and January. Most sellers remove their properties from he market place during the Holiday season, leaving only distressed bank owned properties and highly motivated sellers. For those sellers that kept their homes active the low inventory helped a tremendous amount, lowing the buyers choices of homes. Turning our focus to the buyers side during this time-table, historically most buyers are not active during the Holiday or winter months either, however this season, the interest rates have creeped up, according to Ohiorealtors.org the rate have raised over 5% nearly a full point since November 2010. Buyers are listening to their financial and Real Estate professionals, now is finally the time for the best interest rate.
On Dec 31st, our local MLS experienced 1,136 expired listing, all in one day! Many of which were bank owned or distressed property inventory but not all. Sellers have called me wanting to plan for the spring time to list, ask yourself how many other home owners are waiting until spring? By March 2011, our inventory will grow, by April it will be close to a an annual high for 2011. What are you really waiting for? more buyers to be shopping, or more homes to be on the market? fortunately for sellers, it doesn’t take more buyers to draft terms on your house, it take 1 good ready willing and able buyer. Start planning now, invite us or your real estate professional to visit your home NOW! and do not wait until spring! List now, price it right, and hire the best marketing and negotiating expert you can hire! Highest price and shortest time starts now, your timing counts on it!
May Sales report Cincinnati MLS
Closings in May ’10 vs ’09 up 25%
Gross Volume up 28%
Avg Price up nearly 3%
See the complete data sheet here:
Cincinnati Homes for Sale (Daily Activity Report)
| New Listings | 174 |
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| Back on Market | 30 |
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| Price Increases | 8 |
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| Price Reductions | 189 |
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| Pendings | 245 |
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| Solds | 204 |
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| Expireds | 28 |
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| Inactives | 88 |
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This day could stand as the highest pending day in the past 2 years. Nearly 250 homes under contract in pending status today.
Cincinnati Homes for Sale (Daily activity report-Weekend Review)
| New Listings | 228 |
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| Back on Market | 43 |
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| Price Increases | 6 |
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| Price Reductions | 211 |
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| Pendings | 200 |
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| Solds | 120 |
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| Expireds | 30 |
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| Inactives | 40 |
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The last weekend of the tax credit produced a high water mark for pending activity since we started reporting these numbers last summer. 200 pendings over the weekend shattered the previous high mark by over 20 homes, 181 in October 09.
The Home Finder Network was successful in helping dozens of buyers and sellers come together during the tax credit period. We have expanding our database and are in the process of working several other project. We want to extend our gratitude to all that have been apart of our business during the past 12 months and we look forward to helping families for years to come.
