By Jeff McKinney
Enquirer staff writer

Homes in Greater Cincinnati sold at a record-breaking pace in June, showing the housing market remains hot despite a slight rise in mortgage rates.

Sales of existing single-family homes in Southwest Ohio, Northern Kentucky and Southeast Indiana reached 3,480, up 12.7 percent from June 2003, local Realtors reported Monday.

Nationally, sales of existing homes rose to a projected record rate for the year of 6.95 million units in June, up 2.1 percent from 6.81 million units in May, the National Association of Realtors reported. Sales were up 17.4 percent from June 2003.

The brisk June sales kept Greater Cincinnati on pace this year to surpass record sales in 2003.

"People are still looking at the market favorably because though rates have inched up a bit, people can still afford to buy a home," said Sandra Butler, president of the Cincinnati Area Board of Realtors.

Locally, the average rate on a 30-year, fixed-rate $100,000 mortgage hit 6.08 percent last week, according to a weekly survey of lenders by the Cincinnati Area Board of Realtors. That compares to 5.57 percent a year ago.

Realtors say the market continues to remain hot because mortgage rates remain historically low, and housing is affordable for many potential buyers despite reports that mortgage rates could keep rising as the economy continues to grow stronger.

Sales in Southwest Ohio, which account for about 80 percent of the region's total, hit 2,752, up 14 percent from June 2003. The average price rose 5.16 percent to $185,442.

Sale of homes mainly in Boone, Kenton and Campbell counties was 626 - up 7.7 percent from last June. The average price was $151,630, up about 15 percent from June 2003.

Jennifer Harris, president of the Northern Kentucky Association of Realtors, said a wider mix of buyers, including baby boomers, their children and minorities, are buying homes while interest rates are still low.

"We're probably looking at a another record year in Northern Kentucky this year due to favorable interest rates and economic growth," Harris said.

In Southeast Indiana, sales last month hit 102, up from 93 in June 2003, the Southeastern Indiana Board of Realtors reported. The average price in June was $147,927, basically flat from last June.

The home-sales pace this year has surprised analysts, who had been predicting that sales would begin to slow, reflecting the rise in interest rates.

"Although we've been expecting sales to ease, it's clear that the market has tremendous momentum," said David Lereah, chief economist for the National Association of Realtors. "The improving job market and higher consumer confidence are feeding into a large demographic demand for housing."

Still, Lereah said he expected home sales to cool a bit in coming months.

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

Sales by month

Existing-home sales in Southwest Ohio, Northern Kentucky and Southeast Indiana rose 12.7 perc