The numbers are actually encouraging showing that there is strong activity in the housing market, and that the end of December numbers are seasonal. As the spring approaches it will continue to be a buyers market as the Cincinnati real estate market rebounds.  As the foreclosures rate slows, the inventory in our area will diminish helping to maintain housing prices. Without the abundance of under-priced foreclosures on the market homeowners should see a stabilization of value over the next few years.

There were 60,000 fewer houses sold in 2008 than projected, but the NAR Raised their 2009 forecast by 30,000 homes.  Along with the slightly higher volume, there is a slight decrease in the 2008 median real estate price, reflecting the continued absorption of foreclosures and short-sales.

The NAR’s pending home sales index was designed to try measuring which way the housing market is going in the future. It is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction hasn’t closed. Pending sales typically close within one or two months of signing.

The NAR report states that the median age of these buyers is up to 31, from 30 in 2007 and they are putting twice as much money down (4% vs 2%) compared to 2007. Even more promising is that the first time buyers are making up more the buying population in 2008 (41%) compared to (39%) in 2007.

For the Cincinnati Real Estate market recovery that is a very good thing. Every first time home buyer helps absorb homes from the current inventory, without adding their house into the mix. This increase in first time buyers and the apparent slowing of the foreclosure crisis could be leading indicators that our local market may stabilizing in the year to come.

Dan Green over at The Mortgage Reports has a reasonable good explanation about how the FED move impacted rates today. From a real estate agents point of view this is a mixed blessing. Yes it makes purchasing a home more affordable to those who are currently looking, however lenders are still being overly cautious about to whom they lend. I am suggestion that all my Cincinnati clients evaluate their position and speak with a mortgage professional about their rates and options.

Their research shows a slight drop from 84,534 to 84,291 in the number of properties repossessed by lenders following foreclosure November over October. But that’s off nearly 21% from September’s 106,415 REO filings. In California Foreclosure Index numbers show REO filings in the state down to 15,978 in November. That is a decrease of 6.55% from October and off nearly 50% from September.

The hope is that as these foreclosure rates slow there will be fewer foreclosed homes on the market, which will help stabilize home values. The article however does not take into account the overarching economic slow down. Although the major real estate challenges of 207-2008 are being resolved, I’m not sure if there is an eminent rebound. The Cincinnati real estate market remains relatively steady, with prices across the board lower than a few years ago and activity levels down as well. Our real estate values did not balloon like Florida, Arizona and California so subsequently we did not experience, for the most part, the bubble bursting.

There are a few advantages, being that both the seller and buyer can see what current market is for their property. The open nature encourages interested buyers to make as attractive an offer as they can knowing other potential buyers are watching, and competing. 

At the same time the system is potentially suseptible to outside influences. Since the offers are non binding (written real estate offers are binding if accepted since they are contracts) there is a potential for outside influence in the form of multiple low or high offers altering the perception of genuine buyers.  As a marketing and exposure tool N-Play could generate property interest and help both buyers and seller better understand the current market price for property. I look forward to using this in my Cincinnati Real Estate business.

Me Now compares your home value estimates with those of other players and the actual List and Sale price. You earn points depending on how closely your estimates are to the rest of the players. The closer you are to the community average the more points you earn and the higher your Real Estate IQ.

It is an one of a kind system that helps community members and Cincinnati area real estate agents better understand trends in the local markets and how home values change over time. Register for the competition today, as it will be running the entire month of October.  We will be giving away some very nice gift certificates to those who have the top three Real Estate IQ’s. 

If you are planning to sell your Cincinnati home in the near future, here is some information that might be of interest. National Association of Realtors has found that the top ten preferences that buyers are most interested in when searching for a home are:

• Central Air Conditioning
  
• Garage (2 or more spaces)
  
• Walk-in closet in master bedroom
  
• Backyard/play area
  
• Cable/Satellite TV-ready
  
• High-speed Internet Access
  
• Separate shower enclosure in master/main bath
  
• Patio
  
• Fencing
  
• Home less than 10 years old

Per the Ameridream website here is some background information on its Down Payment Assistance Program. Charitable down payment assistance funded in part with seller participation has allowed homeownership to grow without using taxpayer dollars. To date, more than one million families and individuals have utilized this down payment assistance, generating nearly $10 billion in home equity for those families. These working families qualify for FHA insured loans in every respect, but are unable to save the needed down payment. Please visit http://www.supporthomeownership.com to let your voice be heard to Congress to save this program.

The city of Cincinnati’s downpayment assistance programs are not affected by this change, so the Cincinnati real estate market may not be too adversely impacted.