Great News in PD This Week!

 

Northeast Ohio house sales rose 13.4 percent in 2012; condo sales jumped

By Michelle Jarboe McFee, The Plain Dealer

Home sales rose in Northeast Ohio and across the country in 2012. The region's housing market saw its highest sales since at least 2008, while the nation posted its best year since 2007. Higher sales and lower inventory of available homes pushed up real estate prices in many Northeast Ohio counties.

CLEVELAND, Ohio -- Northeast Ohio's home sales rose in 2012 to their highest level in at least four years, an indication that the market is recovering after years of dragging down the economy.

Higher sales and a shrinking supply of available homes pushed prices up last year in many Northeast Ohio counties. Experts expect more improvement in 2013, thanks to low interest rates and pent-up buyer demand.

Sales and prices have not returned to pre-recession levels and might never reach the delirious highs of 2005 and 2006, the top of the real estate bubble. But the last year showed that housing has hit bottom.

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In Northeast Ohio, sales of single-family homes rose 13.4 percent last year, compared with 2011. Condominium sales, a sliver of the market, posted a 26.3 percent annual increase, according to local listing-service data for 15 counties.

Statewide, home sales were up 12.7 percent from 2011, the Ohio Association of Realtors said Tuesday.

"This is a train that's very hard to start, but it's also hard to stop" once it gets moving, said Carl DeMusz, chief executive officer of the Northern Ohio Regional Multiple Listing Service, said of the housing market.

In Ohio and across the nation, December sales dipped a bit from November but surpassed December 2011 levels.

The local reports, which track new and existing homes, portray a market plodding toward slow, steady growth. Listing-service data for five counties - Cuyahoga, Geauga, Lake, Lorain and Medina - show that sales have been climbing but still have not reached 2000 levels.

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Real estate companies said their growth in 2012 bodes well for this year. At Coldwell Banker Hunter Realty, which covers a wide swath of Northeast Ohio, annual sales were up 15 percent from 2011, president Ed Dolinsky said. Between its Pepper Pike and downtown Cleveland offices, sales at Keller Williams Realty Greater Cleveland were up 63 percent, operating principal John Ludwick said.

Howard Hanna Real Estate Services, the biggest player in the region, announced Tuesday that it closed $3.6 billion worth of sales and 20,983 transactions in Ohio last year. That marked a 22 percent increase in sales volume and a 19 percent jump in the number of units sold.

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"The momentum had a lot to do with interest rates being low," said Howard "Hoby" Hanna, president of Howard Hanna Ohio. "I'm anticipating another really strong year as the housing market continues to recover."

Across the country, sales of existing homes reached their highest level - an estimated 4.65 million homes changed hands during 2012 - in five years, according to the National Association of Realtors. Nationwide data on new-home sales will be released Friday.

The national Realtors continue to say that tough lending standards and tight inventory are hindering sales. It would take just 4.4 months to sell all of the available U.S. homes at the current buying pace.

"Both sales and prices will again be higher in 2013," Lawrence Yun, chief economist for the national Realtors, said in a written statement.

Prices are inching up, and 2012 marked the return of bidding wars and fierce competition for the best homes in Northeast Ohio. But the housing bust wiped out nearly a decade of price growth in the Cleveland area, and many homeowners remain stuck in houses or condos that are worth less than the debt they carry. Sales of bank-owned properties, though a dwindling share of the market, continue to weigh on home values.

"We're getting a little bit of appreciation, but not so much that we can see a turnaround. But there is light at the end of the tunnel," said Ludwick, of Keller Williams. "Real estate values are driven by supply and demand, and we have a shortage of good inventory. That's going to spur the market. The segment of the market that I think will open up somewhat is move-ups and move-downs, which have been pretty stagnant for the last couple of years."

The national median - or middle - price for a previously owned home was $180,800 in December, up 11.5 percent from a year before. Ohio real estate groups report average prices, instead of medians. Across the state, the average sale price was $132,698, up 7.7 percent from December 2011.

In Northeast Ohio, the average sale price for a house was $133,888 in December, an 11 percent improvement from a year before. Across 15 local counties, condos fetched an average of $122,395 in December, up 14 percent.

Local homes sold for as little as $1,000 and as much as $1.3 million last month, according to listing-service data.

http://www.cleveland.com/business/index.ssf/2013/01/northeast_ohio_house_sales_ros.html

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Howard Hanna
(412) 967-9000
http://www.howardhanna.com

Scariest Things for Home Buyers

When getting ready to sell your home, you should assess its condition and fix items BEFORE you list it. My experience has been that buyers find four issues the scariest to deal with: water intrusion, radon, mold, and the roof. Even if these problems aren't apparent in your home, they may be there.

When a buyer makes an offer on your home, it's usually contingent on them doing a home inspection. A home inspector examines the current condition of a house. He/she identifies current problems and what components or systems may need major repair or replacement.

If a buyer's buyer's home inspector find one of these "scary" issues, three things can happen:  1) they can buy the home as is; (2) they can ask you to fix it or adjust the selling price; and most frightening of all, (3) they can walk away and get their earnest money back. With big issues lurking, you really run the risk of killing the deal.

Smart sellers these days are even hiring home inspectors themselves, before they list, so all problem areas can be identified and corrected, before their home hits the market.  If you're getting ready to sell, ask me if a pre-listing home inspection may be right for you!

SOLD!

So happy to report that 17505 transferred title yesterday! It was a pleasure to market this luxury home (priced at $1,445,000) and I'm thrilled for my seller clients (who are moving on to a new chapter in their lives) and the new family moving in. It's such a special home!  If you want to know the selling price and/or how it affects your home value, just give me a buzz!

Seek Greater Enlightenment...In Your Home!

A recent article in Realtor Magazine talked about the importance of proper illumination when selling a home. It cited a recent survey that found that “lightening and brightening” a home can offer the second-biggest return to sellers (behind #1 “cleaning and de-cluttering.” A $224 investment in upgrading light fixtures and window cleaning can potentially offer a three-fold return at the time of resale!

But even if you’re not planning on selling soon, these lighting tips might make your home a more warm and inviting place to live!
1. Use clear light bulbs. Choose clear light bulbs over opaque for a cleaner look. I’ve been noticing that a lot of retail home stores use this tactic. 
2. Make all bulbs match: This is a huge pet peeve of mine! Mismatched bulb types in a chandelier, for example, are uncomfortable to the eye and make a room feel chaotic.
3. Use the highest possible wattage bulbs: Except in bathroom sconces where they can create a harsh glare.
4. Clean light fixtures. Brush off dusty light shades, remove dead bugs from light fixtures, and get rid of cob webs in chandeliers. 5. Replace dated light fixtures: Don’t wait until you’re selling to upgrade your fixtures. Brass is definitely out and unappealing to buyers, and you’re probably tired of it too! I’m amazed at how affordable great lighting fixtures have become at places like Home Depot, Lowes, Ikea and more. Another option if you don’t want to buy a new fixture…try spray paint! Use metallic iron-colored spray paint on light fixtures, switch plates, etc. It gives a room an instant new look for just a few dollars!

Will 2012 be a Seller's Market?

For the past few years, we've been working in a buyer's market. That is, there were way more listings than buyers out there. That's been tough for a listing agent like me.

But it seems we may be looking at a big change going into next year. Here are a couple factors that point to Cleveland's east side becoming a seller's market:

Fewer foreclosures - Foreclosures should slow down as Freddie Mac and Fannie Mae change their rules and more financially distressed homeowners are able to hold on to their homes. I haven't seen foreclosures being a huge factor in the Chagrin Valley, but they are out there.

Fewer Housing Starts - Builders have been leery of building spec houses and starting new developments. But there is pent up demand for new construction. We estimate that 15% of buyers want a brand new house, and there's definitely a shortage in our area.

Interest Rates - Buyers are going to come to realize that our amazing low interest rates have no where to go but up. Buyers who have been on the fence waiting for rates to go lower may finally buy. That means more buyers out there.

Inventory - Our inventory of houses for sale is so low! In almost every community, the number of listings is down.

It all comes back to your high school economics class....good old supply and demand!

Things to Consider Before Renting Your House

When your house has been on the market awhile and it doesn’t sell, it’s tempting to rent it. After all, it would be nice to have money coming in every month and for the home not to be sitting empty.

But renting is more complicated than you may think, and there are some important things to think about.

Top on my list of worries is how the renters will care for your home Time and time again I hear horror stories of friends who rented their properties only to get them back in terrible condition. Even when you rent to nice families, with good incomes, who seem so great when you meet them. I think it has something to do with pride of ownership…when it’s not their home, they just don’t take care of it the same way.

Other good ideas before renting:
Consult with an eviction attorney – What will you do when your renter doesn’t pay one month, either because they won’t or can’t? You should understand the legal challenges of eviction before deciding to rent.

Interview Property Managers – Being a landlord means getting a call at any hour of the day or night regarding maintenance issues. Are you ready and capable of handling it? It also means finding qualified tenants and collecting the rent. Collection calls aren’t fun. What if your tenant told you that they have enough money to buy food for their kids or pay you rent, but not both?? You might want an experienced property manager on your team to help with these situations.

Create a Realistic Budget – Renting brings some money in, but also creates expenses. When deciding on your rental amount, you need to cover more than just the mortgage payment. You should also include property taxes, maintenance expenses (things like repairing or replacing the roof, appliances etc.) and insurance.

The big question: Chagrin VS Kenston Schools

A question I hear from out-of-town buyers moving to this area is, "Chagrin Falls or Kenston--which has the better schools??"

And when working with local buyers, it seems everyone has a strong opinion...they HAVE to be in Chagrin schools or they insist it's GOT TO BE Kenston.

As a real estate agent, I am not allowed to advise or comments on schools. All I can do is point external & objective resources, let them do their own research and come to their own conclusion.

The Ohio Department of Education recently came out with their Report Card and it's great news for our area...all schools here were rated at least EXCELLENT by the Ohio Department of Education.

Chagrin Falls and Orange were rated Excellent with Distinction, and Kenston and Solon were named Excellent.

I think the really interesting thing is how they scored...Chagrin's index score was 109.2 and Kenston's 107.2! How close is that?!

So my short answer to buyers who ask about schools...We are so fortunate to have so many excellent schools to choose from in our area!

(For more info go to the Ohio Dept of Education website at http://ilrc.ode.state.oh.us/)