November sales provide some sense of relief

Cincinnati's market activity spiked upward in November reflecting a push by many buyers to close on homes before the original tax credit deadline of Nov. 31. The same trend was seen nationally as existing home sales managed to post considerable gains and even managed to eke out a small tick up in prices.

Click for November's Charts

Some of the key stats from November:

• Local inventory rose modestly to 8 months worth of active homes compared to 12.6 months in Nov. 2008. (Inventory usually has a slight rise during the winter months.)
• The local average sales price went up to 146.6K vs. 144.7K last year.
  
• Local sales came in at 1,570 for the month. A whopping 33% increase over Nov. of '08. The national figures were even higher at 44% over '08. Looking back through 1998, however, would suggest this figure is more in line with historical averages.

For a while, the yearly sales figures for 2009 looked like they would be worse than 2008. With the increase in sales rates over the past few months, we are just a hair behind total '08 sales and might even exceed it when December's numbers come in.

The one area that still reflects pressure: new home construction, down 11.3% from the previous year. While the construction industry has been hit hard, this continues an important step in the market correction and will ultimately help clear the overhang of inventory.

Projections for housing remain uncertain as foreclosures are expected to continue their upward climb. The upward curve we saw in house sales through 2005 is now mirrored in foreclosures with a seeming 5-year lag - about the duration of many adjustable rate mortages! While home prices have stabilized for the most part, many housing economists suggest that prices will remain under pressure through 2010 and, at best, will likely stay flat. One other interesting sign of the times - a recent Wall Street Journal article illustrates how homebuyers are taking longer and looking at more properties before purchase.

Do you know your homeowner deductions?

Time once again to remind homeowners of some important tax issues as we prepare for the new year.

Ohio Homestead exemption: This special allowance enables homeowners that are disabled or above 65 to exempt $25,000 of home value from property taxes. There are no income limits on this exemption. Additionally, ALL homeowners are eligible for a 2.5% tax deduction for their primary home (no second homes or investment property). You may want to check your county auditor's office if you believe you are not receiving this deduction for any reason.

Filings must be done between the first Monday of January and the first Monday of June of the targeted tax year. For more information on filing for the homestead exemption or an appeal of the 2.5% deduction, consult these county auditor websites:

• Hamilton County Auditor
• Butler County Auditor
• Clermont County Auditor
• Warren County Auditor
  

Butler County re-evaluates property: Homeowners in Butler County may see some adjustments on their next tax bill. As promised, the county auditor has conducted a new assessment to account for the declining market since 2006. See the full news release for information.

Assessment Complaint Period: If you anticipate challenging the current assessment on your home, the period to do so is from January 1 through March 31. Check your county auditor site (see links above) for more information on the required process.

Homebuyer Tax Credit: The current tax credit requires homebuyers to be under contract by April 30th 2010 (with closing to occur by June 30th). Both first time and some existing homeowners are eligible for the credit. For full details on eligibility, see the Board of Realtors FAQ.

Energy improvement credits: If you made efficiency improvements in your home during 2009, check to see if you are eligible for tax credits at the Energy Star website.