The Cincinnati Area Board of Realtors released home sales numbers for the Cincinnati market. The data suggest it is a very hot market and a sellers market. The data indicates that year over year we are seeing improvement in average selling price, median selling price, time on the market and lower inventory as a result. The actual numbers reported were as follows:
Table 1 Home Sales
|November 2016 Home, Condo Sales as Reported by CABR|
|Date / Month||Homes Sold||Gross Sales $||Average Price||Median Price|
As table 1 Home Sales indicates the Cincinnati Ohio market improved markedly from last year. Raw home sales which includes condos increased 329 from November 2015. That’s almost 11 homes sold per day more than a year ago, closing offices were busy, 21% busier than a year ago to be exact. Overall November 2016 dollars involved in those transactions were $356,003,364 an increase of $84,569,938 over November 2015 an improvement of 31%. That’s very good news for real estate agents. More volume equals more commissions, but how was the result for sellers and buyers. Sellers saw an average selling price increase of $14,185 from November 2015 over November 2016, an increase of 8%, a very good increase. However the median home sales price while lower than the average home sales price, as it always is due to statistics, really had the better improvement in terms of percentage increase. The total sales price increased only $13,000 year over year compared with the average home sale increase of $14,185, but the median sales price was still an improvement of 9% for the month of November 2016. This is great news for sellers who continue to see their home values improve.
As for buyers this would appear to be bad news and to a large degree it is as they can expect to pay a higher price than a year ago along with a lower number of homes for sale on the market this makes it difficult to negotiate a lower price. But its not all bad news for buyers as the mortgage interest rate historically remains low although it has increased from 3.97% average 30 year fixed in November 2015 to an average of 3.98% in November 2016. And after the recent fed rate increase we are looking at a current average rate of 4.18% for that same 30 year fixed rate mortgage loan. The feds have indicated further rate increases in 2017 so buyers should be prepared to make adjustments in their budget planning if they are waiting to purchase in late 2017. That’s good news for the banks but bad for buyers who procrastinate or are not yet in position to purchase.
As always make sure you visit with a Realtor when considering purchasing or selling a home or condo, we would be pleased to serve you at Resident Properties an Ohio real estate brokerage visit us at www.residentproperties.com or call us at 513-916-9106.
Clark, Andrew (2016). Cincinnati Area Board of Realtors. https://www.cabr.org/2016/12/21/november-home-sales-21/