As we look back at what was the last half of 2007, from a real estate perspective, on a national level things were not all that good. The sale of new construction and existing homes was down, due in large part to the sup-prime mortgage mess. Part of the current real estate cycle is a return to balance and 2008 is the year for exactly that. This Washington Post article (registration required) gives a nice retrospective on what was 2007 and provides a positive outlook for 2008. The latest quarterly home-price data from the Office of Federal Housing Enterprise Oversight found that while significant declines have occurred in dozens of speculative markets in the past year, prices were flat or up in 204 of the 287 metropolitan markets surveyed.

Real estate in Cincinnati is one of those markets listed where appreciation has held very slow and steady for years. The beginning of 2008 is going to be a great time for new homeowners to come in and purchase first homes while interest rates are still reasonable. There is a tightening of credit, but those who qualify will enter a buyers market and become homeowners for nearly the price of rent. Purchasing a a larger house in a buyers market is always a good idea. You may not get top price for your current home but you will not pay top price for your future home either. The key is to have a real estate agent who understands the economics of the market and can help you make wise long term investments.

Tags: Cincinnati Real Estate, first time home buyer, home buyer, home seller, Mortgages and Finance, New Construction