Buyers and sellers often hear the term “absorption rate” used in throughout the greater Cincinnati real estate market.

Realtors, banks and relocation companies usually analyze “absorption rates” in order to determine how much inventory is currently available within the area. The formula is fairly simple:

1. # of closed sales in the last year /12 = # of sales per month
2. # of current active listings/ # of sales per month = # of months of inventory
3. # of months of inventory = absorption rate

Looking at a few areas throughout the metro Cincinnati real estate market, Glendale has a 10.5 month inventory of single family homes for sale and Bridgetown has a 14.82month supply of condos.

Absorption rate is important when discussing whether it’s a “buyer’s” or a “seller’s” market. According to the Cincinnati Area Board of Realtors and the National Association of Realtors inventory in excess of 5 months tips the balance in the buyer’s favor. The more houses and condos on the market puts pressure on sellers to reduce prices in order to attract the next buyer.

And the Cincinnati real estate remains a market is definitely a buyer’s market…but some areas are showing more balance.

Most of the areas within the greater Cincinnati real estate market are still “buyers” markets but the chart below reflects that some areas with more than 12 months of inventory.

Greater Cincinnati Absorption Rate-Months of Available Inventory

The rate fluctuates as more houses and condos are listed and sold so if you don’t see your area on the chart or would like up-to-the -minute info-call or email.

Are you having trouble refinancing your mortgage?

Well according to an article in Real Trends:
“White House Announces New Terms to Mortgage Modification Efforts

The Federal government announced this past week that they had issued Executive Orders providing for an extension of the Home Affordable Mortgage Program (HAMP) and a broadening of the terms of the offer to distressed American homeowners.  In essence the White House issued orders that extend the program through the end of 2012 from the year just passed, broadened the eligibility requirements so more homeowners could see their mortgages modified, broadened the eligibility to investors in some cases and also requested that Fannie Mae and Freddie Mac offer similar principal reductions.
This is the latest in a series of moves in Washington to provide more assistance to the housing market and distressed homeowners.  The HAMP program provides subsidies for mortgage investors to reduce the principal balances owed on mortgages as a means of lifting more homeowners from the negative consequences of heavy mortgage debt and payments.  While there was general support for the program, there was little encouraging word from Edward DeMarco, head of FHFA, which governs Fannie Mae and Freddie Mac.  Whether FHFA will end up supporting this effort remains to be seen.
While this kind of assistance could provide a positive effect to hundreds of thousands of homeowners, it would not likely have a major impact by itself on the housing market in 2012.”

While I applaud the efforts to help underwater homeowners, it would be helpful if the government reviewed the success rate and accessibility of all of the current programs and work on simplifying the process so consumers, in need, could actually believe the hype about the different programs.

Only yesterday the big news was about Freddie Mac betting against homeowners needing to refinance their underwater mortgages.  It makes you wonder why government funded programs are working against troubled homeowners?

Are you having trouble securing a lower rate on your current mortgage?

The economy is up.  The economy is down.  Employment is up.  Employment is down.  Cincinnati real estate is up.  Cincinnati real estate is down.

Same news, different day.  However there’s life in the local Cincinnati real estate market and the stats for 6 zip codes throughout the market reflect a wide range of days on market and list prices:

90-day stats for Single Family properties in MASON, OH45040 as of January 27, 2012
Median List Price:	$323,969	Average List Price:	$422,824
Total Inventory:	289	Price per Square Foot:	$100
Average Home Size:	3,028	Median Lot Size:	16,690
Average # Beds:	3.83	Average # Baths:	3.05
Homes Absorbed:	13	Newly Listed:	9
Days on Market:	180	Average Age:	37

90-day stats for Single Family properties in WEST CHESTER, OH45069 as of January 27, 2012
Median List Price:	$231,526	Average List Price:	$298,062
Total Inventory:	251	Price per Square Foot:	$86
Average Home Size:	2,873	Median Lot Size:	18,086
Average # Beds:	3.71	Average # Baths:	2.89
Homes Absorbed:	10	Newly Listed:	7
Days on Market:	190	Average Age:	36

90-day stats for Single Family properties in FAIRFIELD, OH45014 as of January 27, 2012
Median List Price:	$150,319	Average List Price:	$163,421
Total Inventory:	167	Price per Square Foot:	$71
Average Home Size:	2,051	Median Lot Size:	14,519
Average # Beds:	3.38	Average # Baths:	2.29
Homes Absorbed:	8	Newly Listed:	6
Days on Market:	170	Average Age:	34

90-day stats for Single Family properties in HAMILTON, OH45011 as of January 27, 2012
Median List Price:	$177,350	Average List Price:	$188,469
Total Inventory:	465	Price per Square Foot:	$77
Average Home Size:	2,255	Median Lot Size:	17,466
Average # Beds:	3.46	Average # Baths:	2.33
Homes Absorbed:	18	Newly Listed:	17
Days on Market:	189	Average Age:	35

90-day stats for Single Family properties in CINCINNATI, OH45208 as of January 27, 2012
Median List Price:	$318,586	Average List Price:	$433,432
Total Inventory:	143	Price per Square Foot:	$151
Average Home Size:	2,241	Median Lot Size:	7,414
Average # Beds:	3.54	Average # Baths:	2.55
Homes Absorbed:	7	Newly Listed:	4
Days on Market:	217	Average Age:	25

90-day stats for Single Family properties in CINCINNATI, OH45233 as of January 27, 2012
Median List Price:	$151,804	Average List Price:	$202,274
Total Inventory:	83	Price per Square Foot:	$67
Average Home Size:	2,314	Median Lot Size:	17,132
Average # Beds:	3.47	Average # Baths:	2.36
Homes Absorbed:	3	Newly Listed:	3
Days on Market:	245	Average Age:	49

Stay tuned for weekly updates or subscribe now or email me for specific information about your neighborhood.

Number one question in real estate – What did that house or condo sell for?

And there is lots of interest in the high priced homes- as if the McMansion sales will help the rest of the market.  High priced sales do reflect more confidence in the economy- so while not a scientific indicator of the local Cincinnati real estate market – comparing sales for the same time frame in 2012 to 2011 provides interesting information.

According to the Multiple Listing Service of Greater Cincinnati the top 5 single family home sales in Butler, Clermont, Hamilton and Warren for 1/1/-1/28 comparing 2011 to 2012-

January 2012 home sales, while lower in price, are spread all over the greater Cincinnati market and that is good news for sellers.  2011 sales were concentrated in Indian Hill and other high end areas were not getting the activity.  It appears that 2012 is changing the trend.

Condo sales for the same time frame:

Prices are up slightly and city sales seem to be outpacing the suburbs.

Overall the greater Cincinnati real estate market is holding and seems to be gaining a little bit of steam as we start 2012.  The great weather (no heavy snow) is helping.  In order to keep track of progress I’ll keep track of the top 5 every 30 days or so.

However if you can’t wait a month or would like detailed information about your area-call or email today.

The  Campbell/Inside Mortgage Finance Housing Pulse Tracking Survey is a unique look at the national real estate market based on a monthly survey of more than 2,500 real estate agents.  The questions are based on what’s really happening in real estate markets across the United States and provide a “gut” view of the day-to-day activity.

And the Housing Trends Survey says…

No surprise- cash buyers (mostly investors) are putting downward pressure on home prices.  In December 74% of investors used all cash to purchase homes.  Cash and FHA backed mortgages comprise the bulk of the buying market throughout the country (sort of like the good old days when most mortgages were FHA). The chart below shows the trend through the end of 2011.

Source: Campbell Inside Mortgage Finance HousingPulse Tracking Survey

And as we all expected the sale of distressed properties rose steeply as the year ended.  Many lenders are sitting on tons of inventory (shadow inventory) and after waiting for the robo-signing problem to end, lenders began again the foreclosure process.

Source: Campbell/InsideMortgage Finance HousingPulse Tracking Survey

The federal government is currently hatching more programs to help the real estate market.  Maybe, before the mess housing even more, they should test market the new programs is just a few areas and work out the bugs.  I don’t know what you think-but the thought of folks in Washington managing a foreclosure rental program is scary to me.

Need more details about the local Cincinnati real estate market- call or email today.

Sometimes getting stuck in the waiting room has it’s advantages. For me it’s a great time to catch up on interesting material and this week the i-pad traveled to OhioMagazine.com and a great article on the Best of the Best Hometowns in Ohio.

And what do you know Lebanon, Ohio is on the list!

Anyone who’s visited historic downtown Lebanon instantly falls in love with its unique shops, cozy eating places or the possibility of owning a historic home.  Situated about a 30 minute drive from downtown Cincinnati the area has (according to  Yahooo) approximately 20,400 residents, the median home value is $215,000 and the median age of homes is 18 years- which reflects how you can be standing in downtown Lebanon surrounded by 100 year old buildings and minutes away sit lots of new subdivisions. 

The Golden Lamb has been attracting people for decades.  The historic building, antique furniture, food and hotel has been a focal point in downtown Lebanon forever.  But downtown has become the new hotspot for festivals and in addition to the Blues Festival thousands of people flock to the Warren County Festival of Arts,   CountryApple Fest and the Lebanon Carriage Parade & Christmas Festival.

Businesses, food and  modern conveniences just around the corner and the look and feel of what downtown living and working from years past.  Combine with the great location it’s no wonder that Lebanon, Ohio is frequently a winner in “Best Places”.

"On Broadway"

In some areas the condo market is buzzing!  If you want to know where-call me.

Throughout the 4 counties (Butler, Warren, Hamilton and Clermont) 1451 condos listed for sale in the Cincy MLS. The lowest price – $7500 and the highest price- $1,950,00 with an average listing price of $158,185.  Currently the average days on market stands at 153.  Below is data for 6 key zip codes gives for buyers and sellers and idea about pricing, days on market and the number of single family currently listed for sale.

90-day stats for Condo properties in WEST CHESTER, OH45069 as of January 27, 2012
Median List Price:	$95,065	Average List Price:	$129,006
Total Inventory:	99	Price per Square Foot:	$69
Average Home Size:	1,576	Median Lot Size:	n/a
Average # Beds:	2.29	Average # Baths:	2.13
Homes Absorbed:	4	Newly Listed:	2
Days on Market:	291	Average Age:	32

90-day stats for Condo properties in MASON, OH45040 as of January 27, 2012
Median List Price:	$151,008	Average List Price:	$167,162
Total Inventory:	122	Price per Square Foot:	$81
Average Home Size:	1,916	Median Lot Size:	n/a
Average # Beds:	2.37	Average # Baths:	2.34
Homes Absorbed:	5	Newly Listed:	3
Days on Market:	214	Average Age:	31

90-day stats for Condo properties in FAIRFIELD, OH45014 as of January 27, 2012
Median List Price:	$71,535	Average List Price:	$74,030
Total Inventory:	95	Price per Square Foot:	$52
Average Home Size:	1,253	Median Lot Size:	n/a
Average # Beds:	2.13	Average # Baths:	1.89
Homes Absorbed:	3	Newly Listed:	2
Days on Market:	251	Average Age:	19

90-day stats for Condo properties in HAMILTON, OH45011 as of January 27, 2012
Median List Price:	$75,881	Average List Price:	$83,102
Total Inventory:	30	Price per Square Foot:	$59
Average Home Size:	1,287	Median Lot Size:	n/a
Average # Beds:	2.11	Average # Baths:	2.06
Homes Absorbed:	1	Newly Listed:	1
Days on Market:	239	Average Age:	50

90-day stats for Condo properties in CINCINNATI, OH45233 as of January 27, 2012
Median List Price:	$103,708	Average List Price:	$125,604
Total Inventory:	10	Price per Square Foot:	$68
Average Home Size:	1,401	Median Lot Size:	n/a
Average # Beds:	2.12	Average # Baths:	2.15
Homes Absorbed:	0	Newly Listed:	0
Days on Market:	243	Average Age:	34

90-day stats for Condo properties in CINCINNATI, OH45208 as of January 27, 2012
Median List Price:	$199,746	Average List Price:	$233,661
Total Inventory:	46	Price per Square Foot:	$103
Average Home Size:	1,956	Median Lot Size:	n/a
Average # Beds:	2.26	Average # Baths:	2.17
Homes Absorbed:	1	Newly Listed:	1
Days on Market:	259	Average Age:	20

Condos make up a fair share of the current greater Cincinnati real estate market and some areas have an abundant supply of inventory.  In order to make the right decision about selling your condo- call for detailed information about your unit and complex today.

The National Association of Realtors  (NAR) is a great resource for information about the housing market.

Soruce: calculatedriskblog.com

The headline for the graph is that the number of properties for sale declined 21.2% from December 2010 and that means we are edging closer to balanced market for both buyers and sellers.  It doesn’t mean that prices have recovered to the market highs.

The next graph is the level of sales by year indicating a slight gain over the past few years.

Source: calculatedriskblog.com

Perhaps the most interesting fact is that all-cash sales comprised 31% of the purchases in December, 2011-which was up from 28% in November, 2011 and 29% in December of 2010.  According to NAR, investors are responsible for the bulk of the cash sales.  Unfortunately the Multiple Listing Service of Greater Cincinnati doesn’t provide data for cash sales in our area- but we’re probably fairly close to national levels.

Call or email if you need more detailed information about our local real estate market.

How would you like to walk up to your favorite piece of real estate, point at it, then somebody would it scoop up, wrap in a bag, weigh it and tell you what you owed?

Buying real estate would be as easy as buying candy!

Many of today’s real estate buyers and sellers throughout greater Cincinnati are expressing frustration about the entire process and, as an agent, I’d have to agree.  Pages and pages of paperwork, confusion how the process works (or doesn’t work), short sales, foreclosures, lender requirements and the list goes on and on.  Most agents I know sit down and discuss the process with both their buyers and sellers prior to ever listing or purchasing a property..but somewhere in the excitement lots of people show symptoms of what I call “selective amnesia”.   Also known as – we only remember what we want to remember.  Sound familiar?  I’m not making fun of people with selective amnesia- at times- we all suffer from it.  We just need to recognize the stumbling blocks in the real estate buying/selling process and prepare in advance.

One of the most misunderstood steps in the real estate process seems to be making offers and handling counter offers.

For some reasons buyers, sellers and some agents react very personally to offers.  Of course, if you’re the seller and the offer is 30% lower than list price, the offer may seem like a personal insult.However I can honestly say that in all the years I’ve never heard a buyer or seller actually say their goal was to upset the other side by making a “low ball offer”.  The best way to the “sting out of a low offer”  is to take the offer as a “knock on the door” which requires a some type of response or “counter offer” from you.  Responses on price can range from full price counter- which sends a signal that if the other party is serious they need to make a better offer. Or the counter offer could be as simple as a slight reduction in price.  There are a number of ways of responding and the bottom line is you need to respond and keep negotiating with the goal of coming to an agreement.

Many times buyers and sellers can agree on price but hit a road block when it comes to occupancy, personal property and other miscellaneous things.   As for personal items, I’m not an attorney, but I strongly discourage buyers or sellers from adding pool tables, lawn mowers, flat screen tv’s and surround sound systems (and whatever else you can think of) to the contract.  This is a real estate deal and appraisers don’t like handling personal property and many deals go south because the buyer or seller gets so attached to $400 item and forgets the bigger goal of buying the $260,000 item.  Problems with occupancy, closing dates, inspections are usually resolved with simple communications.  Sellers who cannot vacate at closing because of: arrival of new baby, school schedules, next house isn’t built yet- should include a viable alternative in the counter offer.  Staying in the house after closing rent free for 90 days is not a viable counter offer!  However setting a time frame and paying to stay usually is a win win for both sides- so think about presenting alternatives that might work for both parties.

And one final thought about offers and counter offers- and I need to disclose I’m from the old school- any changes to contract is a counter offer.  Sometimes I hear that a contract has been accepted but when the actual contract arrives, the dates, items of personal property or a request for a home warranty have been changed.  That’s not an accepted contract- that’s a counter offer and the other party needs to initial/sign and date it before it’s a done deal.

Many years ago (in another life) I had the opportunity to take several courses on negotiation and the most important thing I learned was that the best negotiations happen when neither party walks away thinking they got everything they wanted- in short -no slam dunks.

Offers and counter offers in real estate are really all about give and take.

Now I’m wondering, if I knew then what I know now, if years ago I could have countered and made a better deal with the guy behind the candy counter?  What do you think?

Mention Cincinnati’s Over-the-Rhine (OTR) in a conversation and watch what kind of response you get!

Chances are that if you live anywhere in greater Cincinnati you have visited Over-the-Rhine.  Located within walking distance of downtown Cincinnati- loosely bordered by Dorsey, Sycamore, Eleanor, Reading, McMicken, Central Parkway and Vine Streets- the area is probably best know as the home of historic Music Hall.

The School for Creative and Performing Arts

Findlay Market

In addition these well known popular spots, the area boasts a thriving and involved business community am you guessed it – a robust residential real estate market.  Apartments, condos and single family homes are available.  Much of the inventory (apartments, lofts, townhomes, flats, freestanding) are located in buildings which have been totally renovated/updated throughout.  However since the location has begun to bloom again -sections with empty lots are already under construction.

One example is Pleasant Street which appears to have several empty lots on Google Earth…….
…today boast several active and pending sales of for brand new homes.

Many organizations and businesses have a vested interested in helping OTR.  One of the better known is 3CDC which has spearheaded several improvement projects within the area.

In addition to being able to walk or ride a bike to work or shop at Findlay Market, OTR also has a lot of activities-not only in the evening but also during the day.  Check out the OTR Gateway which provides a calendar of events and activities.

Once again talk of moving into the city sparks discussion in our household-not because of actual location- but because like many boomers one person wants a house in the woods (men) and the other wants to walk out the door to get a cup of tea and grocery shop at Findlay Market.