Falling mortgage rates sparked record home sales in the Tristate in 2001, breaking the previous mark set two years earlier.

        Industry experts called the news remarkable, considering it came as most other parts of the U.S. economy tumbled into recession. The sales increased despite the Sept. 11 terrorist attacks, which crippled consumer confidence. Greater Cincinnatians still went on a buying binge for homes.

        “When other industries were downsizing, favorable interest rates carried the Cincinnati housing market to a new level,” said Kathy Koops, president of the Cincinnati Area Board of Realtors.

        The number of single-family homes sold in Southwest Ohio, Northern Kentucky and southeastern Indiana rose 5.3 percent last year — to 26,673, compared with 25,320 in 2000.

        The 2001 figure beat the previous record of 26,171 homes sold in 1999.

        And the 2001 percentage increase from 2000 even outperformed the national growth rate, which came in at less than 1 percent. The 5.25 million homes bought in the U.S. last year topped the previous record of 5.21 million sold in 1999, the National Association of Realtors said Friday.

        Across the country, Americans took advantage of the lowest mortgage rates in more than 30 years.

        In Greater Cincinnati, the housing market remained resilient as lower mortgage rates not only made homes more affordable but also attracted many first-time buyers.

        Demand was strong for

        homes priced at $250,000 or less.

        Among those buyers purchasing a house last year were Andy and Vicki Klem of Mason.

        A good school district and lower mortgage rates prompted the couple to buy a $241,000 home in October.

        “We're getting acclimated to the community, and we like it very well here,” Mrs. Klem said.

        Total sales in Southwest Ohio, generally accounting for about 80 percent of the Tristate's sales, led the pace. In 2001, 21,345 homes were sold in Hamilton, Butler, Warren and Clermont counties, vs. 20,194 sold last year and 20,876 in 1999, the area's previous best year.

        The four-county area also posted brisk sales last month, typically a slow time for home sales. There were 1,518 homes sold in December, up almost 26 percent from 1,209 sold in December 2000.

        Southwest Ohio sales also set records for the dollar amount sold and average price. Total dollar volume came in at $3.3 billion, up from $3 billion in 2000 and $2.9 billion in 1999. The average sale price for 2001 was $156,162 for the four-county area, up 3 percent from $151,604 in 2000 and $144,926 in 1999, according to the Cincinnati Area Board of Realtors.

        The average price also rose in:

        • Northern Kentucky, where it was $136,547 last year, up from $133,795 in 2000 and $124,922 in 1999, according to the Northern Kentucky Association of Realtors.

        • Southeastern Indiana, where it climbed to $138,403 in 2001, up from $121,985 in 2000 and $120,254 in 1999, according to Southeastern Indiana Board of Realtors.

        Though mortgage rates have been volatile in recent weeks, they dropped during most of 2001. The average rate on a 30-year, fixed-rate, $100,000 mortgage hit its lowest point last year at 6.62 percent rate on Nov. 5, according to the Cincinnati Area Board of Realtors. The average rate this week was 7.06 percent, still down from 7.32 percent the same week a year ago.

        Home sales — along with consumer spending — have been the only bright spots in an economy that officially fell into recession in March.

        Ms. Koops said many consumers could have been motivated to buy last year because homes are typically good, stable investments. That, coupled with increasing affordability, could have helped fuel sales. she said.

        “They're just good investments, particularly given the weakness we've seen in the stock market recently,” Ms. Koops said.

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