By Jeff McKinney
The Cincinnati Enquirer

Home buyers went on a binge in August as the Tristate market roared ahead at a torrid pace toward a record-shattering year.

On Thursday, a regional Realtors consortium reported that sales of single-family homes in eight counties of Southwest Ohio, Northern Kentucky and Southeastern Indiana rose 18 percent in August over the same period a year ago. Sales totaled 3,255, up almost 500 units from the 2,759 homes sold in August 2002.

The strong performance marked the third consecutive month that sales in the region rose 18 percent and came despite a rise in mortgage interest rates during the past two months.

January-through-August sales in the region now total 20,914, up 8.4 percent from the 19,278 homes sold in the same period of 2002, Realtors reported. The standing annual record of 27,904 sales was set in 2002.

"All indications now are that we're heading in the direction of another record year, particularly if mortgage rates remain favorable and people remain positive the economy is getting better," said Kathy Overstreet, president of the Cincinnati Area Board of Realtors.

The August buying activity was widespread with impressive gains recorded in both Northern Kentucky and metro Cincinnati. For the month, the Cincinnati Area Board of Realtors reported that 2,567 homes were sold in Hamilton, Butler, Warren and Clermont counties, up 18.7 percent from the 2,162 sold last August. Meanwhile, the Northern Kentucky Association of Realtors reported sales of 594 homes, up 17.3 percent from the 506 sold in August 2002 in Boone, Campbell and Kenton counties. In southeast Indiana, primarily Dearborn County, sales rose to 94 home in August 2003 from 91 a year ago.

Realtors attributed the gains to mortgage rates that remain relatively low and rising consumer confidence in the economy. Traditionally, August is one of the housing industry's biggest months as parents try to close on homes before school begins.

"Though we're no longer at historic lows on mortgage rates, borrowing money is still pretty cheap and buying a home now is a good value," said Jack Hoffman, president of the Northern Kentucky Association of Realtors.

Indeed, the average rate on a 30-year, fixed-rate mortgage locally was 6.03 percent as of Tuesday, higher than a record low of 5.21 percent June 16, but still lower than 6.18 percent this time a year ago.

Nationally, August home sales rose 6.47 million, up 21.6 percent from the 5.31 million units sold in the same month of 2002, the National Association of Realtors reported.

"Some of home sales closed in August were negotiated in June, when mortgage interest rates hit record lows," said David Lereah, NAR chief economist. "Much of the remaining portions of sales reflect quick decisions to make offers in July when interest rates begin to rise sharply."

The national housing trade group sees the industry ending the year with another sales record. It predicts that 5.76 million homes will be sold by the end of 2003, up from last year's record 5.57 million.

Homes, sweet homes

Sales of existing homes and condominiums rose 18 percent in Southwest Ohio, Northern Kentucky and Southeastern Indiana in August, compared with August 2002.

Ohio
Month	Home sales (closings)
August 2003	2,567
August 2002	2,162
Month	Average price
August 2003	$170,666
August 2002	$173,232
Kentucky
Month	Home sales (closings)
August 2003	594
August 2002	506
Month	Average price
August 2003	$150,208
August 2002	$144,505
Indiana
Month	Home sales (closings)
August 2003	94
August 2002	91
Month	Average price
August 2003	$145,497
January 2002	$122,918

Source: Boards of Realtors

Email jmckinney@enquirer.com