By Jeff McKinney
The Cincinnati Enquirer

Faced by the threat of higher borrowing costs, Greater Cincinnati went on a home-buying spree in March.

Sales of single-family homes last month in Southwest Ohio and Northern Kentucky hit 2,694, up 27 percent from March 2003, local Realtors reported Tuesday. Sales figures for Southeast Indiana were not available.

It was the second straight month that local sales reached record numbers.

The local rise wasn't an isolated case. National sales of previously owned homes in March were the second-best month on record.

"Prospective home buyers may be feeling some urgency to buy now as home prices and mortgage rates are both climbing," said Greg McBride, a senior financial analyst at Bankrate.com, a research firm based in North Palm Beach, Fla.

Indeed, there's no guarantee that consumers will continue, particularly with mortgage rates moving up.

Locally, the average rate on a 30-year, fixed mortgage came in this week at 6.01 percent, the first time it was at or above 6 percent since Dec. 1, according to the Cincinnati Area Board of Realtors.

Realtors say younger and older consumers both are rushing to buy homes, fearful that the Federal Reserve will begin raising interest rates later this year, which indirectly affects mortgage rates. Lower rates make buying a home more affordable.

Sales in Southwest Ohio, which account for 80 percent of the region's total, reached 2,149 in March, up 28 percent from 1,674 in March 2003, the Realtors said.

The average price fell slightly to $160,726, down from $163,772. The reason: The average price for the 10 most expensive homes sold was $400,000 less than a year ago, which lowered the overall average price.

Sandra Butler, president of the Cincinnati Realtors, said 2004 could be another record year. "We're all looking at these numbers and saying it's incredible," she said.

Sales were almost as strong across the Ohio River.

Sales of existing homes in mainly Boone, Kenton and Campbell counties came in at 545 in March, up 22 percent from 446 in March 2003, the Northern Kentucky Association of Realtors reported.

Jennifer Harris, president of the Northern Kentucky Association of Realtors, said she's seeing move-up buyers, people downsizing and first-time buyers. "More people are going ahead and getting it done."

Real estate experts are hoping that sales could stay strong, even if they tick down a bit.

"Although rates are rising modestly, an improving job market is creating a favorable backdrop for home sales, but at a somewhat slower pace in the months ahead," said David Lereah, chief economist at the National Association of Realtors.

By region, sales of previously owned homes in the West rose 10.2 percent in March from February. In the Midwest, sales increased 6.3 percent, and in the South, they were up 3.6 percent. In the Northeast, however, sales held steady.

The Associated Press contributed. E-mail jmckinney@enquirer.com