Big clearance sales on homes right now

Everyone loves a clearance sale, whether it's on clothing, shoes or furniture.

Then you might be interested in the biggest clearance sale in decades: It's going on right now when it comes to buying a home.

Super markdowns

We found a ranch home in Cincinnati's Mt. Washington neighborhood that from the outside looks like something you might find in the Hollywood Hills.

Its fountains, in-ground pool and gardens make it look like a $2 million estate.

It features vaulted ceilings, fireplaces, a luxury master bathroom and a new kitchen lined with granite.

How much is this 4-bedroom, 3-bath dream home on a wooded 2-acre lot? $1 million? $2 million?  Guess again, because it could be yours for the discounted price of just $550,000.

To view this home, visit www.kw.com/homes-for-sale/45230/OH/Cincinnati/1461-Salem-Woods-Ln/3yd-CINCYMLS-1274063.html .

Trying to move in a tough market

Owner Jack Sandman told me, "It was a significant drop. We dropped from $700,000 to $550,0000. And we hope that's what is going to do it for us."

Jack and his wife are trying to downsize in the worst housing market in a half century. Since last year, they've lowered the price from $700,00 to $625,000 to now $550,000.

Their realtor, Jerry Garrison of Keller Williams Realty, says you can find lots of deals at every price point.

"Prices are terrific. You can buy homes today for prices you couldn't have touched two years ago," Garrison said.

M ore discounts in new subdivisions

Up I-75 30 miles north in Mason, in a more typical suburban neighborhood, realtor Jason Bowman of Remax Elite showed me a 7-year-old home that is now selling for less than it cost new.

"You've got a 2-story foyer, expansive open kitchen, with a big sunroom right off it," Bowman said.

This tidy, move-in condition 4-bedroom, 2.5 bath home was valued last year at $325,000. It was recently listed at $289,000, then dropped even more.

"If you go back 3 or 4 years, you couldn't get into this community for $300,000," Bowman said. "And now we've got homes priced in the upper 200's. This particular listing is down to $275,000."

To see this home, visit www.jjbowman.com/property/3220-Armour-Ct-Mason-Ohio .

(UPDATE 7/27:  As a result of our report, and the interest it has generated this week, this home now has an offer on it and is considered "under contract.")

Too many sellers, too few buyers

The problem with newer houses like these: Too many of them for sale and too many underwater homeowners bailing out on their mortgages.

"Inventory has been piling up the past year, and you've got a lot of short sales and distressed transactions, which are also bringing the marketplace down," Bowman said.

Realtors say forget about what similar homes were selling for 2 years ago; that's ancient history.

Jerry Garrison told me, "You can't go back a year for comps (comparable home sales). You can't go back 6 months for comps. You have to go back just 60 to 90 days."

It may not be the best time to be a seller: But if you can afford to buy, and feel you will be able to sell your own home, realtors say you could land the deal of the century.

The Bottom Line

Thinking of sticking your toe in the water? You should find markdowns in all but the most prestigious neighborhoods, such as Cincinnati's Hyde Park, where prices have actually increased in the past 2 years according to Realtors.

To see a neighborhood by neighborhood list of recent price reductions, click here.   Most of these have been on the market for several months, and are now getting their first or second price cut.

Just don't expect to flip that discounted home for a quick profit: Economists say it could be years before home prices return to their lofty levels.

And don't waste your money.

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