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Local real estate market remains conservative

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By Jessica Heffner, Staff Writer Updated 3:01 PM Friday, March 12, 2010

Federal stimulus funds may be just the jump-start the Butler and Warren county real estate markets need to burn through inventories in 2010.

While the national housing crisis was a catalyst into arguably the worst recession since the Great Depression, the local market has fared better than others because of its conservative pricing. Greater Cincinnati has never seen the drastic jumps in appreciation year-over-year, meaning “we didn’t have the big fall when the bubble burst,” said John Prazynski, president of the Hamilton-Fairfield-Oxford Board of Realtors.

While home values have fallen about 11 percent on average locally, some areas actually saw price gains. According to the Multiple Listing Service, the Beckett Ridge area saw average homes sale values increase by more than $22,000 from 2008, with about 33 properties sold in 2009, two more than the year before.

“There are some bright spots,” Prazynski said. “I think out local markets have hit bottom and I think we are moving in the right direction.”

The average rate on a 30-year fixed-rate mortgage is just 5.01 percent, compared to 5.25 percent a year ago, according to Freddie Mac.

Coupled with the $8,000 tax credit available for first-time buyers and $6,500 for existing homeowners, it all makes for a perfect buyer’s market, said Barb Chasteen, president of the Middletown Board of Realtors.

“You would be crazy not to buy right now. I wish I was young and buying my first home,” she said.

Foreclosures are still impacting home sales, and may continue to do so through the new year. While fewer homes were sold at auction last year than in 2008 — 955 in 2009 versus 1,390 in 2008 — about 48 more foreclosures were filed, according to statistics from the Butler County Sheriff’s Office.

“I think (foreclosures) affect home values, but as far as it goes with the (Real Estate Owned)market it is sort of separate,” he said. “Shopping for a foreclosure is nothing like shopping for another house.”

Still, there is about six months of inventory still flooding the market, Chasteen said. Since the stimulus tax credits require buyers to have a contract on a house by the end of April to receive the funds, sales are expected to pick up sooner than the normal spring market push.

“The last few weeks have been extremely busy. Open house activity is up,” she said.

What makes the Butler County area a lucrative market for buyers is its location, Chasteen said. Close to major highways and situated in-between Dayton and Cincinnati, it’s the perfect halfway point for commuters and offers a wide price range, from less than $50,000 for a single-family home into the $300,000 range.

“This is especially the time to buy in Middletown because who knows where we are going to be soon,” she said. “I think five years from now we are going to be up. Maybe we are going to be the next West Chester.”

Keeping your home neat, clean and neutral is key if you want to sell no matter where you live, Chasteen said.

“I know the economy is bad but it is amazing how cheap soap, water and a little paint is and the difference it can make,” she said.

Those interested in buying or selling should contact a Real Estate agent now and take advantage of the influx the stimulus funds should generate, Prazynski said.

“I’m optimistic. Overall Butler County has been a good area and our affordability range is really good. Hopefully this year values start to increase slightly. That would be terrific news for a lot of people,” he said.

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.

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