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How Spooky is the Columbus Real Estate Market?

November 2nd, 2007 categories: Columbus, Financing, Local Communities, Real Estate News

Spooky

This was the scene outside our house on Wednesday evening as we participated in the annual trick or treat ritual. I must say the creature I created scared his share of kids, thanks particularly to the loudspeaker and microphone which allowed me to act as his voice. It was a great time and I am sure kept some of the smaller children up that night long past their bedtimes. It was, as I had hoped, pretty scary.

But talk about scary, what’s up with the housing market? If you relied solely on the media to fill you in, you might think we are hurtling towards the end of the world and all of our homes will be worth nothing soon. Not so, I say!

Recently I wrote about a Forbes article selecting Columbus as the 3rd most stable housing market in the country. For me, this came as no surprise as Columbus has historically exhibited stability in terms of economy, housing and jobs without the wild home price fluctuations seen in some of the most troubled markets.

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The table above showcases statistics for September 2006 vs. 2007 as well as year to date statistics vs. the same period last year. These are figures generated by the Columbus Board of Realtors. I will acknowledge that these are not what we would hope to see in a thriving market. At the same time, it could be much worse. Though total listings sold are down, so is the number of new listings which have entered the market.

As for a dramatic crash in home values, we have seen only 1.6% decrease in average sale price year to date. I fully believe this is indicative of a correction brought on largely by poor lending practices and people overextending themselves. As with any correction, it will take time, however it will also bring with it opportunity.

For Buyers this is a wonderful time to be in the market for a home with:

Many homes to consider
Low interest rates
Motivated Sellers

For Sellers, as I have said for some time now, it can be a great time to sell if you condition your home properly and are realistic about price.

As far as what is to come, I think most real estate practitioners would agree the somewhat sluggish conditions we have been experiencing will not go away over night. But don’t scream and don’t shiver with fright. It’s just not that spooky!

Markets go up and markets go down. Be glad Columbus isn’t primed for the swings other markets see. Take what you read in the paper and see on TV with a grain of salt and if Buying or Selling is in your future, find a good real estate professional and learn the truth about the market as it relates to your objectives.

Related Must Reads: Columbus Housing Market, Buying a Home in Columbus

Authored by Eric | Discussion: 1 Comment »

Buying a Home in Columbus - What to expect in today’s market

August 29th, 2007 categories: Columbus, Financing, Local Communities, Real Estate News

The last few months have certainly been a string of field days for the media. With the apparent collapse of the sub prime lending industry, tougher mortgage regulations, and lots of inventory on the market, Buyers must be stealing homes from Sellers in the Columbus area. In reality, this is not really the case.

If you are considering purchasing in the near future, here are a few things to consider:

Columbus Board of Realtors’ statistics suggest our year to date average sales price is down about 1% from last year. Though last year was the first year in recent history Columbus experienced a decline in average price(-1.8% for 2006), this clearly is not a catastrophic decrease.
Homes are selling. As the chart below indicates, listings sold in July of 2007 were up 5% over the previous year.
Rates are still great. When I started in the business 11 years ago, rates were around 8.5% and Realtors and Buyers alike were all thrilled. Depending on your credit history, employment and downpayment rate you may qualify for 30 year fixed rates in the low 6% range today.
The fact that we have lots of inventory in the Columbus Housing Market today is good for you as Buyer! There many homes to choose from and compare.

My advice to you would be to take what you read in the paper and see on the news with a grain of salt. There are opportunities in the housing market right now and lots of great homes at fair prices.

If you truly want to purchase a Home, be willing to pay fair market value. Sometimes trying to find an incredible “deal” will keep you from finding the perfect home at a fair price. Make sure you establish some detailed criteria to guide you in your decision making process. If purchasing a home well below market value is you number one priority, be patient and don’t become emotionally attached.

As always, enlist the help of a Realtor. A true real estate professional will consult with you about your objectives and how they relate to the current market. Setting expectations up front will be critical to your success in the end.

Westerville, Ohio - Home sales Statistics

August 21st, 2007 categories: Columbus, Financing, Local Communities, Real Estate News, Westerville

Well, with all that has been in the news of late about home prices, mortgage lending issues, etc. I thought I would provide some recent, detailed statistics for a specific area during a finite time period.

Below please see statistics for the entire Westerville School District from 7/1/07 through 8/21/07. Note this is not specific to Westerville proper but includes all areas making up the district. This data also includes condos as well as single family homes. This data details only properties which are listed through The Columbus Board of Realtors.

Homes currently for sale:

Under $100,000 – 47
$100,000–200,000 – 366
$200,000–300,000 – 230
$300,000–500,000 – 145
$500,000 and over – 41

Homes currently under contract:

Under $100,000 – 14
$100,000–200,000 – 75
$200,000–300,000 – 56
$300,000–500,000 – 14
$500,000 and over – 3

Homes Sold from 7/1/07 through 8/21/07:

Under $100,000 – 19
$100,000–200,000 – 91
$200,000–300,000 – 26
$300,000–500,000 – 26
$500,000 and over – 3

So what does all of this mean?

There is lots of inventory on the market in these areas. With so much to chose from this is a great time to be a Buyer!
165 Homes sold in a 45 day period. Homes are definitely selling, with pricing and proper staging being more important than ever.
162 more are in contract (not all of these will close).
The heart of the market in this area is in the $100,000–300,000 range.

The bottom line here, is things are not as bad as the media may make them seem. True, it may be harder to get a loan today if your work and credit history is spotty. For those of you with good credit and job history, however, this is a great time to Buy!

If you have questions about these statistics or would like a more detailed overview of a specific area in Central Ohio, please let us know. We would be happy to serve as a resource for you.

Tougher Mortgage Regulations - A Good Thing!

July 2nd, 2007 categories: About Realtors, Financing, Local Communities, Real Estate News, Real Estate Professionals

Many in the Real Estate and Mortgage industries may be groaning as they realize fewer Homebuyers will be qualifying for loans in the near future. In reality, the loose restrictions and lenient loan programs dominating the industry for several years have created some real problems for the Real Estate industry and many Homebuyers.

These problems include:

Unprecedented foreclosure rates nationwide with Ohio ranking near the top
Artificially inflated sales prices due to financing costs built in to the price of a home
Significant financial problems brought on by Homebuyers over-leveraging themselves through the available mortgage programs

The net effect of these issues has surely been a contributor to the sluggish real estate market with many Sellers needing far more than they can sell their home for just to break even.

In the recent past, Buyers choosing adjustable rate mortgages (arm) would be qualified using the initial rate. For instance if a Buyer could afford a home at a starting rate of 5%, no consideration was given to the fact that the loan might adjust to 7% three years down the road making the payments out of reach for the Homeowner. This scenario in no small way added to the number of foreclosures as Homeowners struggled to keep pace with upward adjusting rates.

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Going forward, Buyers will need to qualify at the higher rate. Though this will keep a lot of people from getting in to a financial bind, it may be a disappointment as loan amounts offered may be significantly lower.

As a Real Estate Professional I have always been careful to educate Buyers about the ins and outs of their financing decisions. It is critical that Homebuyers understand the worst case scenario as it relates to taxes, interest rates, etc. Unfortunately, many Homebuyers have been tempted by the “get it all and get it now” mentality promoted by the lending industry and in many cases they are paying the price now.

If you are considering a home purchase, be sure to do your homework. Here are a few tips:

Ask lots of questions. There is no stupid question when it comes to your financial well being.
Research on your own. The internet has a wealth of pertinent information.
Borrow based on your comfort level. Often a Lender will offer far more than you are comfortable borrowing. Purchase a home that fits YOUR budget.
Get the help of a capable Real Estate Professional. Statistics show you do not save money by “going it on your own”.

Tags: mortgage, real+estate

Authored by Eric | Discussion: 2 Comments »