Cincinnati Real Estate: Lending Down, but Home Sales are up

In this economy anything is possible. The Wall Street Journal provides a very clear picture that the banking industry issues 2.8% FEWER loans in the second quarter, and most of their lending activity came from refinancing existing loans.

Wall Street Journal chart of decreased second quarter lending

Even in the face of fewer loans the housing market is beginning to come up off of the bottom. The spring and summer sales activity continues to strengthen as we move further into the year, especially in the Cincinnati real estate market. The radio program Marketplace points to the positive news that June home sales rose 3% over may, providing additional data to support the concept that the housing market may be turning.

If the numbers being used are closed sales there is reason to be cautiously optimistic. The closed sales we see in June are the product of months of hard work in April and May bringing buyers and sellers through negotiations. July and August and September closed sales should give a genuine indicator of the real impact of contracted lending. A strong close to the year could be a leading indicator of a earnest recovery on the near horizon.

Join our newsletter

Real estate news & new listings delivered to you.