Realtors Optimistic for Summer Housing Market

Homes sales activity throughout Ohio continued to make gains in April, helping the marketplace post 10 consecutive months of positive sales, according to statistics provided by the state’s Multiple Listing Services.

Sales of new and existing homes posted a 11.3 percent jump during the first four months of 2012 compared to the same period a year ago, reaching 30,609 sales compared to the 2011 result of 27,491.

“Strong activity in April continued to help push the Ohio real estate marketplace forward on its road to recovery, following the downturn that resulted from the economic collapse of 2008,” said Robert U. Miller, president of the Ohio Association of REALTORS®. “We’re extremely hopeful that achieving 10 consecutive months of sales growth is an indication that growth within Ohio’s housing market is sustainable and that we have built a pretty solid foundation for current and future homeowners.

“We remain confident about the Ohio marketplace – as interest rates remain at historic low levels, prices have begun to trend upward, sellers are realistic in their pricing expectations and consumers understand that long-term, owning a home is a tremendous investment.”

Not only did sales levels during the first four months exceed the pace of a year ago, the average sales price (January through April) throughout Ohio this year increased 3.8 percent, reaching $122,373 versus the 2011 mark of $117,673.

Total dollar volume this year is nearly $3.8 billion, a 15.8 percent increase from last year’s four-month mark of more than $3.2 billion.

Miller noted that a recent survey of the state’s real estate professionals suggests that the industry remains extremely optimistic about the market’s outlook in the coming months. The OAR Housing Market Confidence Index, a recently created measurement of the perception Ohio REALTORS® have of the marketplace, offers the following highlights in the May 2012 report:

• 89 percent of REALTORS® describe the current housing market in their area as moderate to strong; a 6 percent jump from the perception of professionals a month earlier. This month’s REALTOR® Current Market Index measurement reached 56, increasing 6 points from last month’s index of 50. It’s the highest the RCMI has been in Ohio since OAR began tracking it in June 2011, when we attained an index of 28.
• 93 percent of the respondents have moderate to strong expectations for their market in the next six months; a 5 percent increase from the prior month. This month’s REALTOR® Future Market Index held steady at 58, unchanged from the index posted last month. The current RFMI is the highest it’s been, a marked improvement from the lowest index posted in September 2011 (of 24).
• 90 percent of REALTORS® believe home prices over the next year will remain stable and could even post gains; unchanged from the prior month. The REALTOR® Price Index for REALTORS®’ expectations for the next year increased 3 points to 61 from last month. Our May RPI is the highest it’s been, a 22 point improvement from our low posted in June 2011.

“One thing is clear, Ohio’s real estate professionals are certain that the desire to achieve the American Dream of homeownership remains strong throughout Ohio,” Miller said. “The difficult challenges we’ve faced since the economic collapse of 2008 have certainly not completely dissipated, but it’s apparent that the industry is encouraged that the light at the end of the tunnel is getting brighter.”

Sales in April reached 9,099, an 8.1 percent increase from the 8,420 sales posted during the same period a year ago. The month’s average sales price of $130,003 is a 5 percent increase from the April 2011 mark of $123,544.

Total dollar volume in April nearly reached $1.2 billion, a 13.7 percent increase from the $1 million mark posted a year ago.

Data provided to OAR by Multiple Listing Services includes residential closings for new and existing single-family homes and condominiums/co-ops. The Ohio Association of REALTORS®, with more than 26,000 members, is the largest professional trade association in Ohio.