Rising home sales may continue into the fall

Home sale gains in the Dayton and Cincinnati areas exceeded the state average in August, leading some market observers to believe sales could remain strong through the end of the year.

Sales of new and existing houses and condominiums rose 13 percent in the Dayton area and 16.6 percent in the Cincinnati area last month from August 2011. That compares with a statewide average of 12.7 percent during the same period, the Ohio Association of Realtors said Wednesday.

Home sale prices also rose during the month. In the Dayton area, the average price climbed 8 percent to $132,621 — the biggest percentage increase among Ohio’s large metro areas. The price in the Cincinnati area rose 2.2 percent to $171,320. Statewide, the average price rose 5.2 percent to $145,142.

The increases were part of an ongoing sales growth trend that could run into the next calendar year, officials said.

“Usually we wouldn’t expect to see a slowdown until early November, but with interest rates the lowest in 50-some years, we might not see that slowdown,” said Anjanette Frye, president of the Dayton Area Board of Realtors. “In an election year, you might see homeowners take advantage of those low interest rates.”

August represents the end to the summer sales period, as families plan to move into new homes before the school year begins. June was the only month this year that saw a sales decrease from the previous year, but the state and region rebounded with gains in July and August.

Current interest rates are mostly between 3 and 3.5 percent, which has helped drive the sales increase. But officials caution that while there have been positive steps, the market is still below where is was before the recession.

Statewide home sales dropped from 15,605 in August 2005 to 8,322 in August 2010, a 47 percent decrease. They rebounded to 11,565 in August of this year.

Zahi Ben-David, an Ohio State assistant finance professor and housing market expert, said the sales increase says nearly as much about the sellers as it does the buyers.

“More homeowners have made peace with their loss following the burst of the bubble and move on by selling,” Ben-David wrote in an email. “In terms of sale prices, we observe an increase in those as well. The market in Ohio was stagnant in the last year, so this might be a good sign of a start of a recovery.”

Wednesday’s home sales report comes during a week when other indicators point to a stronger housing market. According to Realtor.com, the number of homes for sale in the Dayton-Springfield region dropped 21 percent from August 2011 to August 2012, when 7,289 homes were on the market. In the Cincinnati region, the number of homes for sale dropped 11 percent to 9,926.

The National Association of Builders/Wells Fargo builder sentiment index also showed U.S. homebuilder confidence at its highest level in six years.

Realtors in the region said they hope to maintain the momentum into the fall, which is traditionally a slower period for home sales.

“Last year, we went into the tank in the last quarter,” said Rick Heben, general manager for an eight-office unit of Coldwell Banker Heritage Realtors. “This year, I don’t see a slowdown. We’ve had very steady activity.”

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