Category Archives: Home prices

Central Ohio real estate market prices

1 Qtr Home Sales Results for Central Ohio

Enough days have passed since the end of the first quarter, that I can now look at the real estate home sale results. Generally the results are pretty positive when compared with the 1st Quarter 2011. Most school districts realized an increase in the number of homes sold, and many also benefitted from higher average prices as well. Remember, when considering higher prices, that doesn’t mean that any given home will receive more money, it merely means the average of the prices the buyers CHOSE to buy was higher. In a way, that can be good since it may indicate that buyers are in better financial positions when they finally decide to buy.

1st Qtr Home Sales *
School 2011
#
2012
#
%
Chg
2011
Avg $
2012
Avg $
%
Chg
New Albany 52 54 +3.8% $411,688 $449,190 +9.1%
Dublin 72 96 +33.3% $340,516 $352,136 +3.4%
Olentangy (Rt 23 west) 74 74 0.0% $381,090 $345,315 -9.4%
Olentangy (Rt 23 east) 56 81 +44.6% $288,849 $300,727 +4.1%
Big Walnut 32 24 -25.0% $236,814 $261,066 +10.2%
Worthington 66 99 +50.0% $237,233 $225,191 -5.1%
Westerville 113 110 -2.6% $213,378 $202,877 -4.9%
Buckeye Valley 16 23 +43.7% $297,196 $223,175 -24.9%
Hilliard 115 105 -8.7% $212,216 $192,141 -9.5%
Marysville 34 33 -2.9% $190,209 $159,350 -16.2%
Delaware 36 60 +66.7% $142,931 $149,411 +4.5%

* Data does not include homes sold as REO, foreclosure or short sale.

Obama’s 2013 Budget has bad news for homeowners

Obama has just released his 2013 Budget and it appears to be meeting with the same disdain as last year’s which even the Democrats didn’t approve. This year’s version is expected to meet the same fate because of the increased taxes, increased deficit spending and reduced military presence.

National Association of RealtorsEven so, the National Association of Realtors® has issued their position on the parts of the budget that will impact housing. Imagine losing the mortgage interest deduction (MID) that you currently receive on Schedule A, if you itemize your deductions.

“As the leading advocate for housing and homeownership, NAR is strongly opposed to elements of President Obama’s budget proposal that would limit itemized deductions, including the mortgage interest deduction, for thousands of families.

“NAR firmly believes that the mortgage interest deduction is vital to the stability of the American housing market and economy. We urge the president and Congress to do no harm.

“While progress has been made in bringing stability to the housing market, the recovery has been slow. The nation’s homeowners already pay 80 to 90 percent of U.S. federal income taxes. Raising taxes on them, now or in the future, could critically erode home values at all price levels. This would destroy middle-class wealth accumulation and trillions of dollars in home values nationwide.

Already Obama has tried implementing several mortgage programs that make great sound bytes for the media and re-election speeches, but offer little help for most homeowners or home prices. What the housing market really needs is a business-friendly environment that reduces the mass of regulations and taxes that prevent small and large businesses from investing in jobs. Until the millions of unemployed or underemployed people have decent paying jobs, the housing market can’t recover and people can’t keep their homes rather than losing them to foreclosure. 

Read NAR full article

Delaware County Property Tax Bills Arrive

Did you receive your 2012 Delaware County property tax bill yet? I received mine today. Oh, yay!

Along with the invoice was a post card explaining that although the assessed value of our properties had decreased, our taxes may not decrease due to various levies being passed.

The assessed value of my property went down 9½%. The Auditors are notorious for referring to the “value” as market value. Market value is what a buyer will pay for your home. The Auditor’s don’t know what that price is because they’ve never been inside your home to know whether it’s in top condition or not. It’s merely an assessed value which they use to calculate what tax amount you’ll pay. Since I’m not planning to sell, I’m OK with a reduced amount for calculating the taxes.

Even though my assessed value declined, the amount of taxes I owe increased 7%. The lion’s share of my taxes go to the schools – to the tune of 79%! A huge school district tax levy was passed last fall, so that isn’t surprising.

Knowing what the school district pays-per-student, I seem to be funding the cost of one child even though I don’t have any school age children. Thus, to whoever’s kid I’m supporting … you’re welcome!

BTW, the bill is to be paid to the County by Feb 10.

Luxury Home Sales Were Down in 2011

With so much discussion on the “have & have-nots”, I’ve updated my report on the Luxury homes that were sold in 2011. Bottom line, fewer such homes ($1 million plus) were sold this past year and the prices were lower of those that did sell.

million $ homes sold in 2011 in central ohio
Click to enlarge, then click again

If you missed your opportunity to buy one of these stellar homes, there are plenty still available for sale:

  • New Albany SD: 14 homes for sale with an average price of $1,656,271. Most expensive home is priced at $4,300,000.
  • Dublin SD: 14 homes for sale with an average price of $1,753,355. Most expensive home is priced at $3,200,000.
  • Olentangy SD: 13 homes for sale with an average price of $2,124,900. Most expensive home is priced at $6,899,700 and it’s been on the market for 681 days!
  • Big Walnut SD: 5 homes for sale with an average price of $2,362,960. Most expensive home is priced at $3,995,000.
  • Arlington SD: 6 homes for sale with an average price of $1,533,166. Most expensive home is priced at $2,200,000.

Read 2010 luxury homes results.

A Decade of Home Sales in Central Ohio

The end of the year means it’s time to look back to see how we did in our local real estate market. Average prices of single-family homes “seem” to have turned the corner in most school districts – some moreso than others.

2002-2011 Avg Prices homes sold for Jan-Dec in central Ohio

Click graph to enlarge, then click again

The discouraging news is the severe downfall in the number of homes sold since 2009. The data for the years 2010 and 2011 includes only “normal” sales and does not include homes sold as a short-sale or REO-owned.

2002-2011 No Homes Sold Jan Dec in central Ohio

Click to enlarge, then click again

Having the real estate industry get back on its feet is critical to improving the employment rate since the NAR has calculated that one job is created for every 2-3 homes sold. Additionally, people need full-time jobs and decent paying jobs in order to afford a home. Gov Kasich has been laser focused to keep companies in Ohio or bring new businesses here. As such, the state’s unemployment rate has declined since he took office and that may be reflected in the uptick of the number of homes sold in 2011. Hopefully, we’ll continue to see number of homes sold continue to increase for 2012.

NAR Reveals Housing Sales Lower Than Reported Due To Errors

This week the National Association of Realtors announced that the data they’ve been releasing on home sales has been flawed – mainly understated – by possibly as much as 20% lower than previously reported. They said they will recalculate the data going back to 2007. The national news/business TV shows have reported on this because it will mean the housing decline will be much worse than earlier thought. So be prepared when you hear more about it.

NAR indicated a problem with areas where an agent might belong to two MLS’s and posts their listing in both MLS’s. Denver and Colorado Springs were mentioned, but there are high population areas – East Coast – where an agent needs to belong to more than one MLS in order to capture all potential buyers. When that ONE house sells, its sale is recorded in both systems so the sale is overstated.

The NAR also said there may be a problem with new-builds being double counted since they sometimes are listed in the MLS but the builder reports the sale as well. We have that issue here, since builder spec homes are often placed in the MLS. Even if the builder hasn’t put the home in the MLS, the agent who sells the home can enter it in after the sale in order to record a sale for that agent. Again, this would result in double counting for any report that has obtained data from the builders as well as the MLS.

Our own local Board (CBR) often issues reports by zip code. I’ve previously written why that is not a good move because many of our zip codes cross school district lines. Home buyers tend to want to buy homes according to the schools. To illustrate how the data can vary, let’s consider Powell’s zip code – 43065 – which primarily is southwest Delaware County, but it also extends down into Franklin County in the Smokey Row/Hard Rd area. There is a wide difference in the homes and prices in the entire zip code.

For Jan-Nov 2011, in the entire zip code of 43065 (excluding short sales, REO’s, foreclosures, condos), there were 377 homes sold at an average price of $347,114. But if we view it by the four school districts found within the 43065 zip, here’s how the numbers shake out:

  • Olentangy SD: 265 homes at average sale price of $394,425.
  • New Builds in Olentangy SD: 8 homes at average price of $438,264.
  • Buckeye Valley SD: 43 homes at average price of $291,400. (mainly an area around & part of Scioto Reserve)
  • Dublin SD: 24 homes at average price of $285,285. (primarily Shawnee Hills and Summit View Woods in Franklin County)
  • Worthington SD: 45 homes at average price of $154,717. (Franklin County around Smokey Row/Hard Rd)

This is why I don’t use the NAR or CBR data for any of my reports on this blog. There are just too many misleading nuances. Real estate is local and if one doesn’t know about or understand the specific points of a given area, the public can really be misled.