Home sales in May declined in Butler County and the greater Cincinnati area, a trend expected due to the Ohio home order order.
Home sales declined to 1,950 (a decrease of almost 26.9%) compared to a record May level a year ago when sales, according to statistics released on Monday by the Cincinnati Area Board of Realtors, were 2,667.
In Butler County, the number of homes sold decreased from 541 in May 2019 to 382 in the previous month, a decrease of 29.4%. Home sales in Warren County declined similarly, dropping from 357 in May 2019 to 236 last month, a decrease of 33.9%.
The portfolio of houses for sale continued its downward trend year-on-year, falling from 4,188 in the previous year to 2,758 in May 2020, a decrease of 34.2%.
According to Donna Deaton, Managing Vice President for Remax Victory in Liberty Twp, the double-digit decline in sales is due to a lack of inventory.
"There are tons of buyers right now," said Deaton. "Whatever comes onto the market has to be achieved as quickly as possible. Because of COVID-19 and the new protocols, we were able to plan overlapping demonstrations in the past, and now we can't, so it's difficult to win your buyer over before is under contract. "
According to Kelly Meyer, president of the Cincinnati Area Board of Realtors, house sales in May are likely to be below current restrictions. However, real estate in the local market "has remained strong and very active".
"Our moderate weather, low interest rates, reasonable prices and constantly changing inventory make Cincinnati one of the cheapest places to live in the whole country," said Meyer. "Viewing activities – appointments to view a home – provides us with an early indicator of future home sales in our region."
The average home price in the Cincinnati metropolitan area rose to $ 238,994 in May from $ 231,499 in the previous year. This is an increase of 3.2% and average prices for the 14th consecutive month have risen.
In Butler County, the average home price rose to $ 226,701 from $ 209,891 a year earlier, an increase of 8%. In Warren County, the average home price rose to $ 301,580 from $ 288,319 a year earlier, an increase of 4.6%.
Despite numerous security measures and restrictions, activity recovered to the pre-shutdown level. This suggests that buyers and their brokers are looking for and buying houses, Meyer said.
The National Association of Realtors said Monday that the monthly decrease had reduced sales to a seasonally adjusted annual rate of 3.91 million, the slowest pace since a home buyer tax credit expired in October 2010.
The number of homes sold across Ohio in May reached 11,794 and was down 25 percent from 15,723 a year earlier, according to Ohio Realtors. The average home price in May of $ 206,141 is 2.5 percent higher than the $ 201,104 mark in the same month a year earlier.
Chris Reese, President of Ohio Realtors, said it is important to note that the offers on the market are attracting buyers and boosting house prices.
"Record-low mortgage rates, which are expected to remain for the rest of the year, will be the key factor in housing demand as the Ohio economy picks up," said Reese. "However, more offers and more housing will be crucial to meet market demands."
Sales declined in all regions of the country, with the largest decline in the northeast, where viral infections were particularly severe.
Lawrence Yun, chief broker economist, said on the basis of individual reports that he believes May could turn out to be the bottom for the property market, with sales showing a V-shaped recovery in the coming months. However, many private economists believe that recovery from the disorders caused by the corona virus could take much longer.