You may have noticed that the vicious media had no problem touting the decrease in real estate sales in December of 2008 (BizJournals).  “Sales were down at record numbers, blah blah blah.”  Typically, our local media picks up on this information and perpetuates the fear.  But, don”t let these national numbers scare you if you are in the Cincinnati area.

Active inventory for Single Family Residential (and condominiums) is down 9% from December 2007, and has trended down 5.71% from 2007 to 2008 (entire years).  That is a good thing.  As the number of homes for sale decrease, the prices generally increase.  This is accomplished by removing from the market the many homes that would normally not sell, and thus giving the buyers less to choose from.

Other great news is that the number of SOLD Single Family Residential (and condominiums), while still down from a year ago by about 6%, is UP from November to December 2008 by 8.16%.  That means sales picked up in December; a month that the general public believes that business is slow.

As a point of reference, the last year to have increase in the Number of SOLDS from the previous year was 2005. Now, things won”t be back to normal, or even in that same ballpark until we see monthly increases in sales AND monthly decreases in inventory from the previous year.  When that happens, I think we can say that the worst is over and this correction period has ended.

Read more about this from a national viewpoint from our friend Dan Green on his blog.  There are some good things happening elsewhere too!

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Related...

• May 27, 2009 -- Spring Housing Market Brings Inventory Back Up
• April 13, 2009 -- FHA Mortgage and Refinancing to become more difficult
• April 9, 2009 -- Affordability Shines in Cincinnati
• December 19, 2008 -- Not Happy With Your Hamilton County 2008 Market Value?