- January home sales in Cincinnati
Year over year the home inventory index for the Cincinnati market has declined by 26% signaling an improved and recovering local housing market. The inventory level looks at the number of homes for sale and how many homes are being purchased in a given month. The inventory level is how many months it would take to sell all of the homes currently for sale at the current sales rate.
6 months of inventory represents a balanced marketplace where neither the sellers or buyers are favored. The graph shows that in the spring and summer months, and even into the early winter Cincinnati’s real estate market was approaching that level balance maintaining an 8.8 inventory level. Locally we are still in a slight Buyer’s market. What is critical to look at is the difference in the January levels of 11.1 in 2012 vs. 14.5 in 2011.
This difference is due to some key factors. A 10% increase in sales, and a 14% increase in pending sales coupled with fewer foreclosed properties on the market are the main driving factors. We look forward to seeing the trend continue into February and a return to a more balanced market with approximately 6 months of inventory.