September Home Sales Momentum Slows
Average Price Sets Record for 27th Consecutive Month
The momentum of September 2018 home sales slowed compared to last year’s levels, down – 7.5 % compared to September a year ago. Home sales this month were 2,109 compared to 2,280 in September 2017.
“Despite September sales slowing, 2018 home sales still remain one of the top three strongest in over 10 years,” said Phil Morrical III, President of the Cincinnati Area Board of REALTORS®. “This is still a competitive market, there are plenty of buyers and the interest rates are low. Consumers wanting to sell their home need to understand that this is a great time to list your home with a Realtor,” said Morrical.
The September average home price climbed to $207,894 compared to $198,567 a year earlier, a +4.7 % increase. At the same time, the inventory of homes for sale, as of September 30, continued its year-over-year declining trend, but at a slower rate, from 5,633 a year ago to 5,449 in September 2018, down – 3.27 %. However, September inventory was up + 0.5% over August 2018.
“Cincinnati is considered a very affordable market for home buyers and the inventory is turning over quickly,” said Morrical. “Realtors monitor a statistic called, “Months’ Supply” (Absorption Rate). If we take the September sales and compare it to the September active inventory to see how many months of possible sales exist before there is zero inventory. For September, there is 2.6 months’ supply. 5.0 is considered a “stable market.” Below 5.0 months, it’s a Seller’s market; above 5.0, it’s a Buyers’ Market,” said Morrical.
Local home mortgage rates in September averaged 4.51% for a 30-year fixed rate loan. The rates were up compared to 3.83% a year ago. At these fixed rates, the monthly principal and interest payment on a $100,000 home loan with no money down would be approximately $507.
“REALTOR’s are available to help guide consumers through all the important details involved in buying and selling a home. A REALTOR will assist them through the entire process and is your absolute best source for professional and accurate information,” said Morrical.
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Nationwide, September home sales were down 3.4% compared to August on a seasonally adjusted basis and were down – 4.1% from September 2017.