Alison Moss - Cincinnati Real Estate

Case-Shiller Market report and our Cincinnati Real Estate Market

Yesterday the Case-Shiller home price index came out, and it had some positive numbers. The C-S index looks at 20 major metropolitan real estate markets and watches the change in home sale prices on a monthly basis. The index provides numbers that are normalized for the home prices in the first quarter of 2000.

Because Cincinnati is not one of the markets observed by the index, we have o draw some conclusions from our closest neighbor, which is Cleveland. The below chart shows the decline and slow rebound of the housing market over the last 12 months in Cleveland.

Case Shiller Home Price index July 2009 - Cleveland

What we see in the numbers is that in February, March, and April of this year home values in Cleveland fell below the their 2000 value levels for the same months. But we also see an increase in home values as the spring and summer months arrive. In Cincinnati we saw a similar trend, driven by a number of factors including the season, first time home buyer credit, and improving macro-economic conditions.

If you have been thinking about moving up into a large home this may be the time to make the move. As prices begin to rise proportionately more expensive homes will gain in price faster than lower priced homes. A $500,000 home will cost $550,000 if it gains 10% in value, while a $200,000 home will cost $220,000. That is a $30,000 difference. call me today if you are interested in deeper local market analysis! 513-518-1140

Selling a Home In Cincinnati: August Report

The Cincinnati Area Board of Realtors recently issued their monthly report. The news is pretty much what we all in the real estate field expected. Prices are still slightly depressed, but home sale volume is slightly better than last year. August 2009 was slightly better than August 2008 in terms of the number of homes sold. The average cost of real estate sold is lower this year, due in part to the volume of short sales and foreclosures being purchased.

There is wide belief that the First Time Home Buyer Tax Credit has helped increase sales volumes and help avert further decline in our area’s home prices. The below graph shows the steady seasonal increase in sales that we see in our market during the warmer months of spring and summer. I am trying to impress on my clients that although the tax credit ends on November 1st, they truly need to have contracts written and the financing process started no later than the middle of October, and even that is cutting it close.

Cincinnati Foreclosures and the National Foreclosure Market

Recently I have been working with a number of clients who have expressed interest in purchasing a foreclosed property simply because of the savings, compared to the market value of the home. Foreclosures are still abundant in Cincinnati and as the jobless recovery continues, sadly, more foreclosures will be coming on the market.

Thankfully the volume of property has been manageable compared to the foreclosure glut that other states have experienced. According to foreclosure-tracking company RealtyTrac.com, over half of the country’s foreclosure-related actions in August occurred California, Florida, Michigan, and Nevada. The top 10 list also includes Arizona, Illinois, Georgia, Ohio, Texas and New Jersey.

The word of caution I give my buyers is that with a foreclosure, the savings on the initial sale price may not yield an overall benefit depending on the condition of the home. I have outlined these concerns before on my Cincinnati Real Estate Web Site. Those considerations, coupled with the general complexity of the Foreclosure purchasing process, are giving my buyers an appreciation for how much more value a well maintained home has.

If you are interested in purchasing a foreclosure call me at 513-518-1140 or e-mail me for more information.

Posted on Sep 14 in Cincinnati Real Estate, Investment Property, Property Value
Tagged: benefit, caution, Cincinnati, complexity, foreclosed property, foreclosure market, glut, home foreclosures, jobless recovery, national foreclosure, top 10 list