Figures from The National Association of Realtors show home sales rose ten percent in September from August. The jump follows a bottoming out of sales over the summer to a historic low, after a federal tax credit for first time homebuyers expired last spring.
But while the news is positive on the national level, here in Ohio, home sales actually fell nearly 6 and a half percent in September. Douglas McCloud is the President of the Ohio Association of Realtors which collects the sales numbers from multiple listing services around the state. McCloud says Ohio's difference from the country as a whole is a good indicator of the old adage: "All real estate is local." McCloud says unemployment, ongoing concern about the economy, and a glut of foreclosed houses are all a part of Ohio's problem.
Douglas McCloud: If your neighbor down the street is in foreclosure and somebody can buy that house for $75,000 less than can buy your house that's a whole lot of the problem. Buyers can't sell their houses to buy another house.
McCloud also believes some buyers are looking for more political stability and are waiting until after the election to take advantage of historically low interest rates. Sales dropped in major cities across the state. In Northern Ohio, home sales dropped nearly eight percent between August and September. In Cincinnati, sales fell by 3.7 percent. In Columbus, 10 percent fewer homes were sold last month.