Butler County’s housing market continues to gain traction, drawing homebuyers while prices are still historically low, local real estate experts said.
Last month, sales of 388 single family homes and condominiums closed in Butler County. The number of homes sold rose nearly 39 percent year-over-year from 280 existing homes sold March 2012.
Sales are up 28 percent from 304 units sold March 2011, according to newly released figures provided Monday to the JournalNews/Middletown Journal by the Multiple Listing Service of Greater Cincinnati.
“I think buyers are aware they better act now before prices go up,” said Michael Combs, managing broker of real estate firm Coldwell Banker Oyer Inc. in Middletown. “We actually had the biggest February in company history,” in terms of number of sales and dollar volume over the firm’s 40-year past.
Buyers are acting on still-low interest rates and relatively low prices. But a dwindling supply of for-sale homes is driving prices higher going forward, said Mark Meinhardt, president/broker of Star One Realtors Inc., with offices in Fairfield, West Chester Twp. and Cincinnati.
Butler County’s average sales price last month was $142,876, a relatively flat change of less than 1 percent from the year ago average price of $141,815, according to the Cincinnati MLS. However, the median sales price grew 10 percent from $122,350 in March 2012 to $134,650 this March.
A rising median sales price —where half of homes sold for more and half sold for less — indicates more higher priced homes are selling than before.
“Things are creeping towards a more balanced supply of houses,” Meinhardt said.
A balanced market between buyers and sellers is considered to be a six month supply of homes for sale, at the current sales pace.
Declining inventories within Butler County vary from a 6.5 month supply in West Chester and Liberty townships, to 7.5 percent in Fairfield and Fairfield Twp., 8 percent in Hamilton and 9.3 percent in Middletown, based on Meinhardt’s estimates.
As prices rise, more sellers sitting on the sidelines in fear of taking a loss will be drawn to list their house for sale on the market, Meinhardt said. Prices have not fully recovered — the average sales price in Butler County peaked at $174,384 in June 2006 — but as they do, it will help restore equity.
“Our sales are up as a market, as a company, as an industry. It’s across the board,” Meinhardt said. “The interesting thing is that while the solds and the pending sales continue to do well and to increase year-over-year…the inventory continues to be a challenge.”
“I think what we’re going to find out is it’s going to end up being a good thing for prices,” he said.