Sales of existing homes dipped in March in Greater Cincinnati, Northern Kentucky and Southeastern Indiana despite optimism that activity could pick up as the prime residential real estate selling season kicked off.
The Cincinnati Area Board of Realtors said home sales fell 8 percent to 1,625 from a year ago. The median home selling price dipped 1.5 percent to $125,000 compared to March 2013. Sales in Hamilton, Butler, Warren and Clermont counties account for the bulk of sales in the group’s territory.
Despite the number of homes listed for sale is down 8.2 percent year-over-year, the number of listings rose 1.1 percent to 8,789 from February.
“Aside from the weather in March, home sales continued to gain momentum for this time of year,” said Ken Parchman, president of the Cincinnati Area Board of Realtors. “Even though home sales are off slightly compared to a year ago, the spring market is very active with new listings on the rise.”
Local mortgage rates averaged 4.45 percent for a 30-year fixed rate mortgage, up from 3.67 percent a year ago, the Reading-based group said.
The Northern Kentucky Association of Realtors said home sales dipped 7 percent from year ago to 414. The median selling price also fell 4.1 percent in March to $128,000.
However, Nothern Kentucky agents say there’s room for optimism because the number of homes under contract are rising as well as the number of properties being listed for sale. The avearge number of days a home spent on the market last month was 89 days, a seven-day improvement from a year ago.
In Southeast Indiana, the sales volume fell 8.5 percent from a year ago with 76 homes selling in March. The median selling price for those homes fell 22 percent to $89,950, according to the Southeastern Indiana Board of Realtors. The Indiana group partially attributed the slugglish sales to the carryover from harsh winter weather and a shortage of quality homes being listed for sales. In Southeast Indiana, investors snagged 55 percent of homes sold last month.
At the national level, home sales finished March at a seasonally adjusted annual rate of 4.59 million, which is about 7.5 percent off the March 2013 pace.
National Association of Realtors Chief Economist Lawrence Yun said current sales activity is underperforming by historical standards, but he expects improvements in months ahead.
“With ongoing job creation and some weather delayed shopping activity, home sales should pick up, especially if inventory continues to improve and mortgage interest rates rise only modestly,” Yun said.