Brittany Simonelli

Realtors are expecting a turnaround in 2009. During the last recession people started to buy homes even with high unemployement because the combination of price drops in real estate coupled with very low rates moved people off the sidelines. Expectations are the same will hold true for now. Rates are now below 5% for a 30 year fixed and price decreases have made housing very affordable for many buyers.

Larry Schottenstein, Broker of Revealty

Below is a report from the Columbus Board of Realtors

Central Ohio REALTORS® are hopeful that tumbling mortgage rates and action by the Federal Reserve will help stimulate the local housing market during the winter months, typically a slower home sales period. Rates have fallen to under 5 percent for a 30-year fixed rate mortgage, and rates on mortgages through Freddie Mac and Fannie Mae are at their lowest point since the early 1970s. As these truly historic rates continue, we're optimistic that consumers will see the amazing values available in today's housing market, and decide that now is as good a time to buy as we've seen in decades, says Greg Hrabcak, president of the Columbus Board of REALTORS®.

"This the lowest mortgage rate on record for an entire generation of homebuyers and it's only a matter of time before these rates have a positive affect on consumer confidence."

There were 1,153 single-family homes and condominiums sold during November, down from 1,565 in November 2007. Although home sales were sluggish in November, the historically low interest rates should help drive investment buyers, and those first-time and move-up purchasers back into the market in 2009.

"National economic pressure is continuing to impact the local housing market, but we're still fairing much better than elsewhere in the country and I'm confident that a lot of qualified buyers have been waiting on the sidelines," Hrabcak says.

With 14,418 homes on the market in November, the number for sale dropped to the lowest level since 2005, supporting the return to a balanced market.

The average sale price in November was $164,658.

Properties in city's historical districts show stability, investment opportunity in roiled market

Business First of Columbus - by Paul E. Kostyu

Real estate investors looking for value in a down real estate market might want to take a look at properties in the city's historic districts.

Though Ohio remains one of the hardest hit states in the number of foreclosures, according to RealtyTrac, a California-based company that follows foreclosures, there's been little impact, if any, on historic districts here, industry insiders say.

In Central Ohio, much of the foreclosure problem resides in suburbs. Still, real estate agents are seeing flat sales in the city's historic districts in part because people are staying put.

Historic homes and buildings are in short supply and that keeps their market relatively stable. Also, the value of property in some of the districts hasn't decreased as much as in other parts of the city and Franklin County.

"We have a limited commodity - 1,200 homes," said Marilyn Vutech, a longtime real estate agent in German Village. "Thank goodness."

She described the market for houses in the $250,000 and under range as healthy because they typically are bought by first-time homeowners who don't have another house to unload.

"Historically, there's been solid appreciation, a very strong 3 to 4 percent over the past 22 years," Vutech said of German Village properties. "The past 18 months, there's been a hiccup all over Ohio. There's been a slight depreciation. It's the commodity that saves it. There's not a sea of competing inventory."

Joe Armeni, a real estate agent in the Short North area, including parts of Victorian and Italian villages, said available properties are few and far between.

"Foreclosures are nonexistent in the Short North. It's completely stable here," said Armeni, who has been in the business 28 years. "Traffic has been pretty good. Prices are relatively flat."

Stelios Giannopoulos, a Bexley-based developer who has done preservation work for several decades, said money can be made by renovating old buildings. If there's a foreclosure, someone grabs it.

"You won't see a lot of signs for rent either," he said. "People have a nostalgia for the old neighborhoods and bringing them back to life."

buyer beware

Just because historic properties may have a good value proposition doesn't mean they're a right fit for every buyer.

Giannopoulos said to expect the unexpected.

"You have to be careful not to let the cost get out of hand," he said. "You have to look at a building. Look how sound it is, make a study. You should hire an experienced architect."

The first building Giannopoulos renovated in Italian Village was held together by roots and vines, he said. He had to build a metal skeleton to keep the structure from falling down during renovation.

Still, he said, "when you renovate you can get more money out of an old building than (building) a new one."

Jason Janoski said buyers in search of a purchase in one of Columbus' historic districts need to do their homework. And expect trouble.

Janoski lives in the Old Beechwold Historic District off North High Street, south of Morse Road.

Changes to the exterior of buildings, including landscaping, are controlled by the city's seven-member Historic Resources Commission, which gets recommendations from the preservation office within the Columbus Department of Development.

"We think the commission is important," Janoski said. "But the process has been inconsistent, not well communicated and capricious. That's a problem across districts that discourages people from doing projects."

Ohio foreclosure rate shows break in November-Article from Business First Of Columbus

Related News

Home foreclosure filings in Ohio rose modestly in November from the month before but were down more than 20 percent from a year earlier, a respite from the steadily rising tide of foreclosures across the state. But the company tracking foreclosure data nationwide is warning the improvement seen in Ohio and elsewhere may belie continued trouble for the housing industry.

Irvine, Calif.-based

Still, Ohio's foreclosure rate remained higher than the national average of one filing for every 488 houses.

Across the nation, foreclosures in November fell to their lowest point since June, easing 7 percent from October, RealtyTrac found. The totals, however, were 28 percent higher than in November 2007, the research company said.

RealtyTrac CEO James Saccacio said the November decline was due in part to states' efforts to extend the foreclosure process so that people could remain in their houses longer and lenders putting moratoriums on foreclosures while programs to restructure mortgages were put together.

"There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months," Saccacio warned in a release.

He pointed to data on mortgage delinquencies - a 29-year high in the third quarter, according to the

In Ohio, the largest share of foreclosure filings last month - 4,828 - came from houses that had fallen into default, while the state also recorded 3,370 foreclosure sale notices and 4,685 bank-owned properties.

Ohio's foreclosure rate was the seventh highest in the nation, though its total filings were sixth highest among states.

Financing Your Production Home

Builders will often market the home based on a low initial payment. Builders will often market the home based on a low initial payment. Be cautious of the financing benefits because you may be taking on more financing risk than is appropriate. Some important points include:

• Financing incentives are buried in the price: Many production Builders add on 3-5% to the price of the home for the great financing. On a $200,000 house, that means you just paid $6,000-$10,000 to the Builder to give you that great rate, buydown, or low introductory rate. The real value of the house is 3-5% lower.
• Why is the payment so low for a new build? The large print giveth and the small print taketh away. Never shop for a home based on the payment. If the house costs $150,000 and the payment for the Builder's 30-year fixed mortgage is lower than if you bought an existing home at $150,000, it is most likely because you are paying extra for the financing.
• Risk of adding expenses to the mortgage if you are a short term Buyer: If the Builder added in 3% for financing to the price of the home, the benefits of the lower payment will be justified after 4-7 years. If you have to sell the house quickly, you may lose money because the true value of the your home on resale may not cover the over-payment you made for financing incentives.
• Benefit of long-term rate lock: This is one of the best benefits of Builder financing. They will lock in the interest rate during the entire construction process, which is usually around 270 days. If you are nervous about rising rates, then this feature will be hard to beat. Most lenders can lock in the rate but they will charge a premium for long-term locks.
• Shop to see if it's truly a benefit. Get a good-faith estimate from the Builder's lender. Ask how much they would drop the price of the home if you got financing on your own. Ask other lenders if they can compete if they are also using the same financing premium. Only then will you truly know if you are getting a good deal.
• Short term mortgages are used to decrease the initial payment. The low payment you see in the paper may change at the end of the year and adjust every year therafter. If you are going to live in the house for a short time then a short term adjustable mortgage may be appropriate. Short term mortgages can be risky, so make sure you get the mortgage that is appropriate for you because the payments can adjust upwards

http://www.forbes.com/home/2008/10/10/cities-buck-economy-forbeslife-cx_ab_1010realestate.html