Entries categorized as ‘Home prices’
Remodeling magazine and REALTOR® magazine have just issued the results of their 2008 Cost vs Value report. The survey was conducted last summer with 150,000 emails sent to appraisers, real estate agents and brokers. They received 4,500 responses.
In past reports, I have questioned the results as the dollars spent for the renovation seemed far higher than what clients have told me that they actually spent, even when having professionals do the work. I also wondered about the resale value that might be achieved when selling which also seemed overstated vs what I actually see when doing comps for buyers or sellers.
For example, in this year’s report, they indicate a sunroom, in the IN-IL-MI-OH-WI markets, would cost $71,591 to add. The resale value would be $36,740. Clients have told me that they spent around $20,000 to $25,000. Prices on homes with a sunroom might be $10,000 to $15,000 higher than those without. However, if there are other negative issues with the home, having a sunroom may not help a home to sell. If there are no other issues, then the sunroom “may” help a home to sell vs another similar home without one, making the addition of that room merely a tie-breaker. Bottom line, it depends on how important that room is to the buyer and how much extra the buyer is willing to pay for it.
But, this is just MY opinion … read further for the “official” report. You can get free city reports once you register at www.costvsvalue.com.
For the Columbus market …
- A mid-range kitchen is estimated to cost $20,991 with a resale value of $14,734 for 70.2% recouped cost.
- A mid-range basement remodel is estimated to cost $58,851 with a resale value of $33,686 with a recoup rate of 57.2%.
- An upscale remodel of a bathroom is estimated to cost $50,598 with a resale value of $35,858 for 70.9% recouped.
Some common additions, upgrades, remodels for the E. North Central area (IN, IL, MI, OH, WI)
- Wood deck addition: job cost = $10,534, resale value = $7,263, recouped 68.9%
- Garage addition: job cost = $60,018, resale value = $33,559, recouped 55.9%
- Basement remodel: job cost = $64,008, resale value = $37,851, recouped 59.1%
- Minor kitchen remodel: job cost = $21,759, resale value = $15,038, recouped 69.1%
- Roof replacement: job cost = $20,227, resale value = $11,056, recouped 54.7% (on this one I have first-hand knowledge. My home is just over 2000 sq ft, and the roof I had installed in August using 5-tab, dimensional shingles cost $8500 and that included a tear-off.)
- Vinyl window replacement: job cost = $11,077, resale value = $7,429, recouped 67.1%
Before you decide you can’t afford to make some of these improvements, first check with your local, favorite contractor to get an actual cost estimate. I suspect you may be able to spend far less than this survey indicates. Also, keep in mind that you can’t add 100% of that cost to your base purchase price, because it may just be a tie-breaker feature versus another home on the market. For instance, I would not expect to recoup any portion of the new roof on my home because it falls in the category of “general home maintenance”. Buyers “expect” to buy a home with a roof that has all the shingles and doesn’t leak.
If you’ve made any of these additions or remodels, feel free to add your comments as to the price you paid, and how similar … or dissimilar … your costs were to the Survey’s findings.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Central Ohio · Fix-ups · Home prices · Homes · Sellers · Surveys
Tagged: Remodeling magazine's Cost vs Value report
I’ve received email from lenders that the mortgage rates dropped like a rock today. They’re below 6% and some programs are …
5.5%
Call either one of these two lenders for more details.
- June Zepp, Real Living Mortgage at 614-825-8806
- Tony Butler, Equitable Mortgage at 614-764-5071
Categories: Buyers · Central Ohio · Home buying process · Home prices · Homes · Lenders
It’s been a busy week of meetings at the Board and with clients. One of the Board meetings was the Tech User’s Committee meeting, of which I am Vice-Chair. Tuesday’s meeting featured Joe Testa, the Franklin County Auditor. We invite him once a year to speak to our Committee and it always has the highest attendance since all Columbus Board of Realtors® members are invited to attend.
Because it’s the Tech Users Committee, the presentation is on the fabulous web site that he and his staff have implemented. Every year they improve it and it’s one of the best in the central Ohio area. They’ve worked on improving it even more in the past year, and the new version will go live in the next week or so. He gave our group the beta domain address and asked us to try it out and let them know if we found any bugs.
Joe said that they essentially reviewed the site by asking how they would design it if they were to start over to try to make it even more user friendly. Judging by the demonstration they gave, the site will have often used features more easily accessible with fewer “jumps” to other platforms. I think we’ll find it even easier to use with even more info available for us.
Since Joe’s department handles the property tax assessments, there was much discussion of what adjustments will be made to allow for the effect of foreclosures on a neighborhood’s property values. Per the law that they follow, they view assessments as a 3-year window. They also remove those transactions that didn’t sell as a normal “arms-length” sale. So it’s not likely that assessed property values will decline much, if at all.
Of course, Franklin County citizens can follow the procedures (see Joe’s web site) to appeal their own assessment to try to get it lower … but keep in mind they may determine that the value has increased, and if so, you’ll have to live with it. Oh, whoops!!!
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Central Ohio · Columbus Ohio · Franklin County · Home prices · Homes
Tagged: central ohio real estate market news, Joe Testa Franklin county auditor
I just received a phone call that really disturbed me. I often get calls from appraisers asking questions about the past homes I’ve sold. They make these calls to listing agents when they are doing comps for a lender who is in the process of approving (or not approving), a mortgage for a buyer. The buyer will be paying the lender for this appraisal and hopes that it is accurate.
This particular appraiser was asking about a luxury condo I recently sold in Golf Village (Powell). I began asking her questions, because I know these appraisals can be flawed. She mentioned that she was unfamiliar with the complex and builder of my sold listing. She said she was also unfamiliar with the builder and the community of the condo for which she was doing the appraisal.
So WHY is she doing the appraisal!
Here are the issues that are are going to impact the quality of her appraisal:
- One error dealt with the two builders. Her appraisal was being done for a Bob Webb condo. The Webb family has one of the best local reputations for high quality building construction of their condos, patio homes and single-family homes. Realtors® often use “Webb built” in their MLS remarks section. While my listing was built very well, and was a luxury condo, the Webb name itself can add $$$$ to the price. (”Gee, I didn’t know that!”)
- The condo she was appraising is located several miles away from my listing. It’s too many miles to use as a comp. Same school system, but different schools, different city mailing address and different zip code.
- The condo being appraised is located in a township whereas mine was in a city with an extra PUD tax assessment and an income tax. So there is a difference to the property tax rate as well as whether an income tax is charged. This could make a big difference to a retiree with no earned income. That can affect the price the retiree is willing to pay. The appraiser had no knowledge of this difference. (”Gee, I didn’t know that!”)
- My condo sits on a golf course whereas the condo being appraised is in a more family-oriented neighborhood near a large park. Totally different setting. (”Gee, I didn’t know that!”)
The more I spoke with this appraiser, the more troubled I became. To say she was “clueless” is an understatement. I told her that if she used my sold listing as a comp, that her BPO would be worthless and VERY unfair to the buyer. She said she didn’t know what to do because she couldn’t find other comps.
So why not just explain that to the lender rather doing an error ridden appraisal!
I’ve often wondered how appraisers are able to make an accurate judgement on the price/value of a home a buyer is wanting a mortgage for, because seldom have they been in the homes they are comparing. They have no knowledge how buyers perceive certain features/upgrades in the home because they don’t interact with buyers. This is also a concern for sellers who are refinancing because the same type of appraisal is done as part of that process.
If this appraiser doesn’t change her BPO, there’s a chance that the home being appraised won’t comp out because there could be up to a $100,000 + difference … not exactly chump change. If it doesn’t comp, then the builder or the real estate agent in the transaction will have to spend time disputing the appraiser’s ”findings” and trying to convince the lender to disregard that report or have another appraiser do a 2nd opinion.
Buyers, if your chosen home doesn’t comp out, don’t be afraid to challenge it!
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Condos, patio homes · Delaware County · Delaware Ohio · Golf Village, Kinsale · Golf course communities · Home buying process · Home prices · Homes · New home builders · Powell Ohio
Tagged: Bob Webb custom homes, North Orange Park, Orange township, Ohio
In the past year, much has been written in real estate blogs or newspapers or on media web sites, about the HOUSING CRISIS and who is to blame for THIS MESS. Some say everybody shares some blame, and perhaps that’s true.
Ultimately, the buck stops with the buyer. They were the ones that wanted a house that was more than they could afford. They were the ones who decided to take on a mortgage payment that represented too high of a percentage of their monthly budget. They were the ones who didn’t plan for a rainy day with a savings account, or who didn’t consider what they would do if one of them lost their job or if they didn’t continue to receive increases to their salary.
When people ask me about how we got into this mess, I recite a situation that occurred several years ago. It really illustrates what occurred then and how it set the stage for so many failures.
A couple purchased a modest home for $137,000. They put 10% down leaving them with a mortgage of $123,000. Six months after living in the home they went to a major local bank to get an equity loan so they could by a new SUV - one that would have cost over $30,000. The appraiser for the bank said the home was worth $185,000. Based on this appraisal, the bank gave the couple a $50,000 home equity loan. So six months after buying a $137,000 home, they now owe $173,000 on it.
A year after they purchased this home, the husband had a new-job opportunity in another state. They set up an appointment with me to list their home. I always do a Net Equity Estimate to show sellers what their proceeds will be if they sell at such and such price. If the Estimate comes in negative, I make sure they have the funds to bring to closing, otherwise, because without those funds, the home won’t be able to close.
Naturally, the Net Estimate came in substantially negative. I covered the results with them. The first thing the wife said was that the equity loan was really a car loan. She didn’t understand that it was a lien against the home and would need to be paid off when the home closed. I then asked them if they had the thousands in cash to bring to closing. They didn’t. At this point the wife began to cry because it finally dawned on her that they were “trapped”.
- They couldn’t take the new job because they couldn’t sell their home because they had no extra money to close.
- They could sell the big SUV, but would be in the same situation of owing more than it could generate in trade-in value.
So what did they ultimately do, you ask? They took the new job in the other state along with the new SUV and walked away from their home leaving behind all the debt on it.
Who is to blame for this mess? Do you blame the buyer for being ignorant of good budgeting practices and for making poor financial decisions? Do you blame the appraiser for overstating the home’s value so he can continue to get jobs from the bank so he can make his own mortgage payments? Do you blame the bank for being greedy in wanting to make loans, so they perform well for their stockholders? Do you blame the stockholders who want to see increases to their portfolios and retirement IRA’s?
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Sellers
It’s the middle of October and we need to consider the cold, hard realities of selling or buying homes. There’s reason for buyers to be optimistic. Sellers, on the other hand, need to be realistic … in order to be optimistic. It’s time for both to take off the rose-colored glasses and get moving in a smart direction. I’m not going to review the issues in the economy and financial markets … you get that from the media on a daily basis. However, because of those events, here’s what you need to do RIGHT NOW!
Sellers
- It’s October, and buyers will want to be in their new home before the holidays. That means your home must go into contract in the next couple weeks. If you miss that window, your home is apt to sit until next March.
- If your home sits till March, you’ll sell it for a lower price - almost guaranteed. You might as well lower it now to get it SOLD!
- If your home has been on the market for 3 months without an offer, your price is too high. Buyers are telling you that “something” is wrong with the home and they’re not willing to pay your price for it. You’ve got to lower your price to the point that a buyer is willing to overlook whatever the short-coming is. Remember, it’s how your home compares to other homes they’ve viewed and whether it offers a value versus those homes.
- If you can fix the “short-coming” … fix it. If you can’t … lower the price!
- Buyers don’t care what YOU want to sell it for.
- Even if you have to lower your price, remember the home you want to buy will also be lower in price so you’ll still benefit.
Buyers
- Visit your lender and get Pre-Approved first before you start viewing homes. The rules for issuing mortgages are totally different now than even a few months ago. You need to know how much mortgage you’ll be approved for. With that amount, plus your down payment amount, you’ll then know what price range of homes you can view.
- Don’t view homes you can”t afford in the hope that you’ll be able to buy the home for the amount you CAN afford. That just wastes everybody’s time, including yours and it is so disappointing when you don’t get the home.
- Buy a home to live in and enjoy for several years. You don’t buy homes the way you buy stock. Yes, you hope to have it increase in value, but your primary focus should be finding a home that meets your needs for location, schools, comfort and enjoyment.
- Home prices are generally what they were in 2003-2004. Interest rates are still at historical lows. Inventories are down, but there are still lots of homes to select. If you have a down payment, it’s a good time to buy.
- If you have a home to sell before you can buy, get that home in contract first. Don’t expect the seller to accept an offer from you that requires the seller to wait until your current home finds a buyer.
The GOOD homes that are priced right ARE selling to SAVVY buyers who are taking advantage of this good time to buy. Both parties just need to be realistic about their wants and needs. We had a slow 2-3 weeks with the hurricane and the financial market uncertainties, but showings have begun again so now it’s critical to take advantage of the timing.
Sellers … lower your price!
Buyers … buy now!
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Home buying process · Home prices · Home selling process · Homes · Homes for sale · Sellers
Tagged: central ohio real estate market
September 27, 2008 · 2 Comments
With all the economical and financial news this past week, plus, some discussions of the have’s and have not’s, I was curious to see how higher priced homes were faring in sales this year. We know that the lower priced homes are facing more challenges to attracting buyers, but does the same hold true for the upper scale homes where “lack of money” may be less of an issue for potential buyers?
Normally the charts I prepare are for portions of Delaware County and Franklin County. I decided to use the ENTIRE MLS system for this review since some of the more expensive property may be located in outlying areas where ample land can ensure privacy. I also included condos … not just single-family homes … because there are some luxury condos being sold both in Powell as well as downtown Columbus high-rises. I wanted to know how buyers were spending their money regardless whether it was in a regular home or an easy-care condo or patio home.
This graph shows the NUMBER of homes SOLD by price range between Jan to today’s date.
Obviously, there are a lot fewer buyers buying this year than last, and remember this is for ALL the counties surrounding Franklin County where Columbus is located. Strangely the average price within each price range hardly changed from one year to the next. In other words, the average price in the $200-299K range was $241K for both years … there were just 62% fewer buyers.
Now back to the original premise of my purpose in doing this review. What’s happening in the luxury market? I think the graph shows that upscale people are having the same thoughts as the “common folk”.
If your home is for sale, this should be a wake-up call to make sure your home is in absolute top-notch condition and priced right because your competition is fierce for the much smaller pool of buyers. I could also say that your choice of a Realtor® is very important as well to make sure your home receives the most exposure with the best photos … but then I hope you already know that! 
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Columbus Ohio · Delaware County · Franklin County · Home prices · Homes · Homes for sale · Housing stats · Powell Ohio · Sellers
Tagged: central ohio real estate market news
With the recent government takeover of Fannie and Freddie, mortgage interest rates have declined. If you have been considering buying a home, the time to act is now.
Don’t let this opportunity pass you buy!
- There’s plenty of inventory of homes for sale, so you’ll have a good selection.
- Sellers have reduced their prices to below market prices in many cases.
- Low home prices combined with low interest rates is the best of both worlds for a buyer.
If you don’t already have a preferred mortgage broker, here are two that I highly recommend:
- Tony Butler, Equitable Mortgage Corporation. Call him at 614-764-5071
- June Zepp, Real Living Mortgage. Call her at 614-825-8806.
Get off the fence and act now or you’ll be sorry later.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Home buying process · Home prices · Homes · Homes for sale · Lenders
Tagged: Equitable Mortgage, Real Living Mortgage
In June, I recorded the 10-yr average of home prices for Delaware County through May. Now that we’re through the summer months, I’ve updated it.
This chart shows the average price for single family homes that were sold between Jan 1 thru Aug 31 for each of the years. The red bars represent those average prices that are equal to or higher than the current average price this year in 2008. People who purchased their home in the “red bar years” may have difficulty selling their home for more than they paid for it.
The striped bars represent the averages for Southern Delaware County. The solid colors represent the northern half of the county including the city of Delaware.
The difference between the ‘98 average and the ‘08 average for the southern part of the county is a 27% increase. For the northern portion, it’s a 30% increase. Those are respectable conservative growth rates for a 10-yr period.
This next chart below shows the number of homes sold in both segments of Delaware County. As you can see, there has been substantial growth in southern Delaware County. Keep in mind, this data only includes sales recorded in the Columbus Board of Realtors® MLS system. It does not include new-builds purchased directly from the builders unless the homes were spec homes.
As both these charts show, both prices and units sold are substantially higher than they were 10 years ago. Yes, there is a slight decline for this year, but it IS slight. It also reinforces the need for sellers to have their homes priced right to achieve a sale.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Central Ohio · Delaware County · Home prices · Homes · Housing stats
Tagged: average home prices, central ohio real estate market news
I doubt that “un-comp-able” is a real word … in fact, I’m almost sure that it’s not. Perhaps, the only people that would understand its meaning are other real estate agents. We’ve all had homes that are so unique that 
they just don’t compare to any others that are on the market or have been sold recently.
Of course, we all know that the buyer is the REAL PERSON to decide what a home is worth, but in the meantime, the seller must decide on the price at which the home is listed, and they make that decision based on the comps we provide them. When there are no similar homes to compare to, it makes it much tougher for the seller to select a list price.
I’m currently working with some clients who are in the process of preparing their home for sale. They’re doing all the right things, so when we actually put the home on the market mid-August, I “expect” the home to sell rather quickly … IF we put it on the market at a reasonable price. So what should that price be?
The home is an all-brick home in the Worthington school district. It was custom built in 1991 which is “new” by Worthington standards. It’s a reasonably large 4BR home - over 2500 SF - and it has an owner’s suite on the first floor. It’s also located on a quiet, wooded, cul-de-sac street that is quite convenient to Rt 315 for a commute to OSU, Riverside Hospital, Battelle or downtown Columbus.
When I start looking at comps, I first do a broad search. For this home, I started with a search for active listings (our competition) that are over 2400 SF with 4 BR’s, in the Worthington school district. The search came up with 46 active listings priced from the high $200K’s to the $900’s. OK, that won’t work!
Old Worthington Inn
Many of the Worthington homes have REAL wood doors, woodwork, floors, custom built-ins and other nifty features that aren’t included in newer built homes except at a high price. This particular home has all those features, plus, a great hearth room off the kitchen with brick fireplace, wood bookshelves, bench seating and hardwood floors. I can just imagine sitting in this room on a cold winter day sipping hot chocolate by the fire. There’s also a screened porch for summer enjoyment overlooking the manicured backyard.
So what price range will I be recommending for the seller? I’m still working on that, but I’m narrowing it down … I think! Stay tuned, as you’ll be the first to know.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Central Ohio · Franklin County · Home prices · Home selling process · Homes · Homes for sale · Sellers · Worthington Ohio
Tagged: central ohio real estate market
Several years ago I began tracking the multiple real estate tax rates by school districts for Columbus suburbs. I did this so buyer clients could get a feel for differences that the tax bill portion of their mortgage payment would make to the affordability of the homes we would be viewing.
When buyers have a lender pre-qualify them, the lender will tell them the maximum home price the buyer can select. They’ll also give them a maximum monthly payment. Because the tax rates among school districts can vary quite a bit, a buyer who has been approved to buy an average priced home of $200,000 may be able to be approved for that home in one district but not another. The reason is that the monthly tax portion of the mortgage payment may put them beyond the ratio set by the lender.
The other issue that may come into play, is that a school district with “lower” tax rates, may have higher priced homes. The Olentangy school district is an example of this. This district’s rates are lower than some other established suburbs, but the average home price in the district is much higher. If a buyer is approved for only $200,000, they will be hard-pressed to find a home at that price in the Olentangy district, yet, may find many such homes in that price range in Worthington, even though Worthington’s property tax rates are much higher.
Here is the chart that I’ve prepared to visually show the differences to school district property tax rates by several suburban school districts. The bars within a district represent the various taxing entities within the school district. (click on the graph to enlarge)
Of course, it goes without saying that buyers should budget for their tax rates to increase over the years they live in the home. This is especially true for the newly developing areas, like the Olentangy school district, where the growth in housing has and is creating a need to build new schools.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Central Ohio · Delaware County · Home buying process · Home prices · Homes · Housing stats · Lewis Center Ohio · Powell Ohio
Tagged: central ohio real estate market news, property taxes
A couple months ago, I met with a young couple who would be first-time home buyers. For certain reasons, they thought they only wanted to buy a new-build home. They had even met with a lender to become pre-qualified. They had very specific requirements for the floor plan of the new home and they knew exactly what section of southern Delaware County where they wanted the home to be.
Sounds like they’re doing everything right, doesn’t it! Well, yes, sort of.
The specific requirements they had for the new-build home and the location they wanted to be in, would place the price of the home about $25-$50,000 more than they had been pre-qualified for. There would also be an issue with how they wanted to use the home in that it would be forbidden by most new subdivision’s deed restrictions.
I suggested that they consider an existing home that is not located in a subdivision, because it might be more likely that we could find something more closely aligned to their budget and requirements - and not get them in trouble with their neighbors by violating deed restrictions.
During our discussion of “new vs existing homes”, I mentioned that many of the after-costs of a new build are avoided by purchasing an existing home. One of the first major expenses required in a new-build are the blinds or window treatments which can easily add up to thousands of dollars. Another unexpected cost may be the water bill required to keep the new sod alive until it’s well-seated into the soil. Want a garage door opener? It’s probably yours to put in after closing. Dishwashers come with the home since they’re built-in, but the range and fridge may not, especially if people don’t want them added to their 30-yr mortgage.
Most likely a resale home comes with all these items already installed. Plus, you may also get a deck or fence or mature landscaping. So overall, an existing home can offer a better value than the same-price new build home.
When I began discussing these after-cost differences of new vs existing, the expressions changed on this young couple’s faces. They said they had never considered the things they would have to add to a new-build after they moved in. So not only could they not afford the specific style of home they wanted, they couldn’t afford to live where they wanted, and they didn’t have extra cash to be able to add the necessary extras after they moved in. Obviously, it was a disappointing realization for them.
So, if you’re a first-time home buyer, meet with your favorite Realtor® early. Have your wish list in hand, but be flexible to fine-tuning based on your pre-qualification amount, and keep a substantial amount of cash behind in order to be able to add all the extras that make a house a home.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Buyers · Home buying process · Home prices · Homes · New home builders
Tagged: buying a new build home vs an existing home
For the month of June the cumulative House Watch data published in The Dispatch’s Sunday paper, continues with the trend of the past few reports I’ve compiled . There are still fewer homes for sale this year and they are at higher prices than last year.
For easy comparison, I’ve added the data from the May 1st report. We see there were more new listings added during that month, which is typical as many plan to sell their home during the summer months.
Buyers who think they will wait for the market to bottom out, may have waited too long. Plus, it’s been shown that a very slight increase to the interest rates, can completely wipe out any savings that might be obtained waiting for prices to lower a few thousand dollars.
Number of homes for sale
| |
5/1 |
6/5 |
6/12 |
6/19 |
5/26 |
| 2008 Homes for sale |
16,877 |
17,616 |
17,780 |
17,833 |
18,023 |
| 2007 Homes for sale |
18,240 |
18,706 |
18,908 |
19,154 |
19,500 |
| % Chg ‘08 vs ‘07 |
-7.5% |
-5.8% |
-5.9% |
-6.9% |
-7.6% |
Prices of homes for sale
| |
5/1 |
6/5 |
6/12 |
6/19 |
6/26 |
| 2008 Avg Price |
$225,968 |
$225,852 |
$227,542 |
$226,911 |
$225,882 |
| 2007 Avg Price |
$220,231 |
$225,852 |
$224,657 |
$223,659 |
$221,391 |
| % Chg ‘08 vs ‘07 |
+2.6% |
+0.3% |
+1.0% |
+1.0% |
+2.0% |
This data comes from the Columbus Board of Realtors® and includes the counties of Franklin, Delaware, Madison, Morrow, Union, and some listings of Fairfield, Knox, Licking, Logan, Marion and Pickway.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Central Ohio · Home prices · Homes · Homes for sale · Housing stats
Tagged: central ohio real estate market news, The Columbus Dispatch newspaper, The Dispatch House Watch
After I wrote yesterday’s article on the housing prices and sales in Delaware County, I thought that I really needed to segment out the data for just Southern Delaware County - the Powell, Lewis Center, Galena portion that is in the Olentangy school district. That’s the area of the county with the phenomenal growth, and pricing for that area is much higher than in the city of Delaware or the northern half of the county.
The average pricing is substantially higher than the county as a whole. The increase from 1997 vs 2008 is 28%. The decline from 2007 to 2008 is a little higher than the county as a whole, at 12.5%.
The chart showing the number of homes sold is more telling of the extreme growth of this area - and why the Olentangy school district has had to build so many schools. Keep in mind that this data only includes homes that were listed in the Columbus Board of Realtors® MLS system. It would include new-build specs that were entered into MLS, but it does NOT include all the new-build homes that buyers contracted directly with the builder. Due to all the new subdivisions that were created during this period, that could add hundreds of homes to this chart. Nevertheless, the data does give a peak at the extreme demand for homes in this area.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Central Ohio · Delaware County · Galena Ohio · Home prices · Homes · Housing stats · Lewis Center Ohio · Powell Ohio
Tagged: central ohio real estate market news, Olentangy school district
As real estate agents, we’re often confronted with having to inform sellers that the price their home might sell for now is perhaps less than they paid for it, especially if they haven’t owned it very long.
Since I live in and primarily work in southern Delaware County, I decided to check average home prices since 1997 when I purchased my home. Delaware County has also gone through substantial developmental growth during that period as well. People moved to the county in droves during those years, buying new homes in all the subdivisions that builders eagerly built to meet the demand.
The chart below shows the average price of the homes sold in Delaware County for the period Jan 1 thru May 31 for each of the years 1997 to 2008. In 1997, the average price for the county was $215K. It reached a high in 2007 of $300k. For 2008, the average has declined to $278K (-7.6%), but that also represents an INCREASE of 29% since 1997. So depending on when the seller purchased the home or whether they’ve added equity loans, they may or may not have difficulty selling and paying closing costs.
This next chart shows the actual NUMBER of homes sold in the county during the same time frame. We tend to think that fewer homes are selling than in past years, but not so says the graph. In 1997, only 525 homes sold during the Jan-May period. For this year, 712 homes have sold … a 36% INCREASE! The highest number of homes sold in 2005 when 934 sold during this period.
Bottom line is that we’re not in as bad a shape as we “feel” like we are. We just need to remember to keep things in perspective.
Copyright © 2008. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Categories: Central Ohio · Delaware County · Home prices · Homes · Housing stats · Sellers
Tagged: central ohio real estate market news
Elaine Reese
614-825-8860Real Living HER
