Home sales keep up record pace

By Jeff McKinney
The Cincinnati Enquirer

Greater Cincinnati consumers continued to gobble up homes at a record pace in April under the threat of rising mortgage rates.

Sales of existing single-family homes last month in Southwest Ohio, Northern Kentucky and Southeast Indiana totaled 3,025, up 13.7 percent from April 2003, local Realtors reported Tuesday.

It was the third consecutive month that local sales hit record numbers, and it kept the Greater Cincinnati market on track to beat record sales set in 2003.

The increases in Greater Cincinnati mirrored those around the country. Sales nationally in April were the second-best month on record.

"Though rates have risen a tad in recent weeks, the rates are still favorable enough to allow consumers to get a bargain," said Sandra Butler, president of the Cincinnati Area Board of Realtors.

Locally, the average rate on a 30-year, fixed-rate mortgage this week hit 6.26 percent, according to a weekly survey of 15 lenders by the Cincinnati Area Board of Realtors. A year ago they were 5.61 percent.

Realtors say the market is being driven by a wide mix of buyers rushing to buy homes before rates move higher, or simply because rates are still historically fairly low.

"Job growth and relatively low mortgage rates are supporting the continuation of strong home sales," Butler said. "A 6.25 percent mortgage is still a bargain if you look back over the years."

Sales in Southwest Ohio, which make up about 80 percent of the region's total, came in at 2,333 in April, up 16 percent from April 2003, the Realtors said. The average price rose 5.4 percent to $170,202.

In Northern Kentucky, sales of homes primarily in Boone, Kenton and Campbell counties hit 590 in April, up 6.5 percent from April 2003, the Northern Kentucky Association of Realtors reported. The average price rose 4.45 percent to $145,580.

In Southeast Indiana, sales last month reached 102, up from 95 in April 2003, the Southeastern Indiana Board of Realtors reported. The average price in April was $151,580, up 10 percent from the same month last year.

Real estate experts are optimistic that home sales can sustain their pace, even with the slightly higher mortgage rates.

"Given the favorable economic backdrop and strong sales momentum, a big number was expected for April home sales, and it's likely we'll see another big month in May," says David Lereah, chief economist of the National Association of Realtors.

E-mail jmckinney@enquirer.com

 

 

 

More Financial News