Springboro update Nov. 2008

This update is only an opinion provide by Julie Beall of Irongate Realtors. October and November were tumultuous times in the local real estate economy. Recovering from the dry Hurricane and power outages slowed showings on currently listed properties significantly. In November there was an increase in buyers with several contracts written for closings in Dec. and Jan. The average days on market in the Springboro area is up to 186-254 days; depending on what price range the property is in.It is important to note that well priced properties are still selling but the prices are approx. 8% less than last year.

The Fed recently lowered the interest rate again with the average rate on a 30 year fixed with good credit around 5.38. We are seeing buyers coming back to the market slowly. It is this agent's opinion that the new wealth creation starts now. Those who buy in this market even if they are not buying at the bottom will see a nice growth in their equity over time compared to those who purchased in 2005.

The other area to consider is the building industry which has slowed immensely and still needs to slow further. We are at recording breaking inventories and until we absorb what is currently for sale new home starts will struggle. This is a problem both locally and nationally. Builders must be careful to understand absorption rates in every subdivision, city and state they are considering building in. If builders have questions about a certain area absorption rate call their local real estate advisor. The building industry will be the last to recover in the housing economy. It is all about supply and demand...it always has been and always will be.

Buyers take note usually new construction (not always) cost more per square foot than existing square footage. It is a great time to get a bargain price on an existing home. However some builders are offering incentives to purchase new. Be careful and you will find awesome opportunities out there.

All being said, as the prices continue to decline, buyers are beginning to step in and pick up the bargain pricing. This hopefully will stop the decline in prices and we will teeter at the bottom for awhile and then return to normal market conditions. The market recovery will also depend on our local job market. There is a lot of great news at WPAFB and the I-75 corridor between Springboro and Cincinnati. America and Springboro are on Sale. The buying opportunities are historical. Consider buying now... there may be a cost in waiting with either higher interest rate and/or higher prices. Call Julie Beall for a market update on your home or area. 937-546-0222