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Has the Real Estate Market Turned Around Yet?

The Market Statistics that we send out every month are not so clear about whether we have reached the bottom of the real estate market or not.

Here are the most recent Cincinnati Market Statistics.

As usual at this time of the year, the median sale price is going up and the number of homes selling is going up. If you dig a little further, you will find the trend lines are still going down. The majority of the homes that are selling are the first time homebuyers who are anxiously trying to get their $8000 tax credit! The first time home buyers have been the only driving force in the market for the last 4 years, so that's nothing new. What does seem to be new is that the people selling their homes to these first time home buyers are now buying up! There is a trickle up effect going on. It is slow, but the prices are not going up significantly in the trade up homes, but the trend seems to be growing.

I think it will be a while before the trend is confirmed. I can remember 4 years ago when I felt that we were in a declining market, out in the trenches I could feel the decline of motivation of buyers, lower offers on houses, no more multiple offers etc. and it took a while before the statistics proved the point.  I think we will see the bottom when it has already occurred! It's hard to see it happening, but I can feel it!!

Of course next year may not be quite so robust. There won't be the tax credit to spur on the house buying, so this may all be a small bubble that will burst. So stay tuned! We post our statistics every month.