Marysville Ohio Real Estate Market Conditions September 2010

For 2010, statistics for home sales in the Marysville School district offers a mixed bag of news. Historically, from January 1 until September 7 of 2009, stats show that 210 homes were sold with an average list price of $158047, sale price of $151938 and market days of 95. For the same time period this year in 2010, 189 homes have sold, however the average list price was higher at $165324 with a selling price of $160005 and market days of 89. So less homes have sold, but in less time at a better price. It is undetermined as to whether the increase in price and shorter market days is due to the first time buyer tax credit that expired in April 2010.

As of September 7, there are 297 active listings for sale, 42 in addition to those are indicated as in contract. In years past, inventories within the district rarely indicated they were above 230. The more interesting part of this statistic is that of the 297 active listings, 52 are indicated as bank owned or short sale properties. So 17.5% of the current listings are a result of financial challenges. It is estimated that there are at least this many properties currently unlisted or "shadow" inventory. Homes that may or may not have foreclosed but that are yet to be listed for sale at some point and time. Sheriff's Sales are indicating that twice per month there are 10-20 homes on the docket and most are being re-purchased by the mortgage bank. We are seeing these homes put on to the market as REO or HUD properties at well below market prices months and sometimes even move than a year after the auction. Appraisers try to utilize "like" sales for appraisals for home owners, however, with the influx of foreclosures and challenged sales, this is getting more and more difficult and unfortunately has affected values compared to a few short years ago.

With so much inventory available, it is imperative that an owner that truly wants to get an offer from a qualified buyer in a reasonable amount of time (within 80-120 days) in this market must have the home in excellent condition and be prepared to get a little less for the home than they may have anticipated. With so many choices, home buyers can buy a "fixer upper" in reasonable condition or spend a bit more for a home in move in condition. Some sellers are disappointed that they may counter offer a buyer's offer and find that the buyer may just decide to walk away and go on to their next choice in a home. This happens especially in neighborhoods of production homes that seem to be hit the hardest with foreclosures.

Interest rates for home buyers have continued to come down, however, qualifying for a mortgage loan has become more stringent even within the last few months. This has resulted in a few "accidental landlords" or those who need to move from the area that are able to rent the properties to a buyer who cannot achieve a loan today. Many owners are in hopes of an increase in market values, some are contributing to the monthly payments on the mortgages after rent is collected due to high mortgage payments. This is not always a good option if the home is not maintained well or is damaged during the time a renter is in the home. Sometimes those owners end up with a home to sell in need of repair that they may or may not be able to facilitate in a market that may not have increased in price. Truly a gamble.

With an average list price overall of $205191, and an average selling price of $160005, it indicates that there are some owners "testing" the market to see if they can get an offer on there home and may not necessarily have to make a move. These owners may feel discouraged and have little traffic even though they themselves would like to take advantage of lower home prices to get to their next home. Buyers seem to be waiting on the fence for price reductions and are cautious about paying more than market price for a home. And because it has gotten more difficult for an owner to find a buyer, those owners who would buy a move up or move down property cannot go forward financially until they have a buyer for their current home. Real estate sites like zillow.com that show current market value changes daily seem to be getting a great deal of traffic and more and more smart buyers are seeking value information from county auditor records. Buyers in this market truly have to do their homework and provide what seems to be endless documentation to get approved for a home loan.

Employers do seem to be offering relocation packages again which is good news for the economy. In addition, we are seeing more cash buyers that may have had quite a bit of equity in the home they recently sold or are utilizing other cash resources, such as retirement savings, to purchase a home. Regardless of what the media is stating about the home market, people still have a need to move around, up, down, or want to enjoy the pride and benefits of home ownership. There are many wonderful homes available for today's savvy buyer enjoying the record low interest rates!

Vicki Owens, ABR, CRS, GRI, SFR is the owner/agent of the Marysville Branch office of Andy & Associates, Realtors serving Marysville and areas within a 30 mile radius since 2003. A multimillion dollar producer that comes highly recommended in the area for her track record and knowledge of the area's market. See www.movetomarysville.com and call her at 614-440-5174 or 937-644-3385 for assistance with buying or selling.