The perfect time to buy a house?

I was looking at the local MLS stats for June 2009 recently. What I found was a bit amazing on one level. And on another level, he shows that Obama’s tax breaks for first-time homebuyers are incredibly effective.

Before I get into the nitty-gritty of the story, let me offer some background. The Cincinnati Ohio real estate market has always been fairly stable. The average year-over-year home price increase has always been around 3%. Some neighborhoods a little more, others a little less. So we’ve never seen the kind of increases that you see in places like California, Florida, Phoenix or Las Vegas. So what is it that has me writing today? Our Cincinnati MLS statistics reveal that, in June 2008, the median price of a home sold was around $190,000. In June 2009, twelve months later, the median price of a home sold was on the high side of $130,000.

What? Home values ​​in Cincinnati decreased by 35% in 8 months? Not! What’s happening is that Obama’s tax incentives are doing exactly what they’re supposed to do: stimulate home buying by first-time buyers.

Those first-time homebuyers aren’t buying $200,000 homes. They are buying houses in the $100K-$150K range. And because the number of homes bought by first-time homebuyers is so much larger than that of buyers who buy exchange homes, the effect on the median home price sold is quite surprising. And why wouldn’t people buy a house now? There has never been a time when homes were so affordable.

First, they can get an $8,000 tax credit. Second, they can take advantage of some incredibly low interest rates on 30-year financing, in the current range of 5% to 6%. And third, house prices have recently gone down around here for the first time since we’ve kept track. Largely as a result of the economic fallout, in the form of short sales and foreclosed homes.

And this will not last. The eco-boomer generation is reaching prime age to buy homes. And their numbers, far greater than that of the baby boomers, will fuel unprecedented demand for housing, far greater than that of the baby boomers. Obviously, such demand will have to push prices up.

So I urge anyone thinking about buying a home in Cincinnati to get serious about this year. Find a great Cincinnati real estate agent, hop on the Cincinnati MLS, and find your dream home for less money than they will ever do again! There is no substitute for the Cincinnati MLS for the buyer who is serious about buying a home in Cincinnati.