Dan and Amy Schuman,e-Pro,ASP

The weather outside may be the coldest we've seen in years, but the Solon real estate market is heating up. Naturally, it is way too early to make predictions on how our market here will end up in 2009 but the real estate market here is Solon is off to a very good start.

Specifically, as we are now midway through the month of January, 13 homes have gone under contract. That is almost a home a day, an unbelievable statistic considering all of the negative news we have all seen and read regarding real estate. There were only 9 homes under contract at the same time in 2008, so for now, we are ahead of last year's numbers.

Summary: While winter months can be a little slower in terms of real estate sales, there are always very good deals to be had during cold weather months. There are some sellers who were unable to sell during the fall and have become suddenly more motivated as temperatures plunge. Maybe the winter heating bills are motivating factors or perhaps some of these sellers have already purchased other homes and are simply tired of holding on to two properties. Regardless of the reason, some sellers become extremely motivated and cooperative during the winter and buyers are taking notice.

This month, 5 out of the 13 homes recently under contract were either bank owned or distressed properties. Some banks are becoming very aggressive with their pricing. A few of the homes on this list sold very quickly, some even had multiple offers, indicating there is a demand for a well-priced home in a desirable community such as Solon. In addition, mortgage rates are at their lowest point in over 30 years, making housing much more affordable. There may be light at the end of the tunnel.

For a list of addresses and specifics on the 13 homes that have gone under contract, please email us and we will be happy to forward you the information. Also, if you are looking to buy or sell a home in Solon or the surrounding Eastern suburbs, please contact us as we would be happy to show you why people love working with the Schuman Team.

Dan and Amy Schuman are Solon residents. We use our home staging expertise to sell listings quicker and for more money. The average home in the Cleveland area sold in over 100 days in 2008 and our listings sold in less than 60 days. The Schuman Team specializes in luxury homes and are members of the Luxury Home Consultants of Keller Williams Realty Greater Cleveland and of the prestigious Institute for Luxury Home Marketing, the premier independent authority in training and certification for real estate agents working in the luxury home market. We also work extensively with buyers and sellers who are relocating in or out of the area.

2008 was an off year in real estate in Pepper Pike. However, having an excellent rated school system and homes that typically sit on 1.0+ acre wooded lots still makes Pepper Pike one of the most desirable and exclusive communities on the east side of Cleveland.

In terms of average sales price, home values in Pepper Pike have fluctuated over the last 5 years. In 2008, the average price of a home in Pepper Pike was $440,743, the lowest this number has been since 2003. In 2007, the average price of a home was $512,435. The lone bright spot was that the average price per square foot increased from 2007 to 2008, from $123.13 to $130.15.

Market time has steadily increased as well over the last 4 years. In 2005, average market time in Pepper Pike was 88 days. This number has inched upwards and in 2008, it took 133 days, on average, for a home to sell in Pepper Pike.

Pepper Pike Luxury Homes- In terms of luxury homes, which are those that sell for over $500,000 per the Institute for Luxury Home Marketing, 17 luxury homes sold in Pepper Pike in 2008, which is the lowest this figure has been in over 5 years. In 2007, 32 luxury homes sold in Pepper Pike.

Commentary: The problem over the last few years is that sellers had unreasonable expectations of the value of their home based on unprecedented appreciation during the early part of the decade. During the real boom years of 2003-2006, homes in Pepper Pike, and surrounding areas as well, were statistically appreciating at much higher rates than normal. So, instead of focusing on realistic market conditions, many sellers would price their homes based on the market continuing to appreciate at an unrealistic pace. Many sellers merely priced themselves out of the market and did not properly react to the downturn. This can be evidenced by the fact that more than twice as many homes didn't sell in 2008 than sold ( 138 vs 66 ).

Also, today's buyers have expectations that in order for them to pay market value for a home, it should be updated and in move in condition. Homes that have not been updated recently linger on the market and often do not sell. Buyers will pass these up for a similarly priced home that is more updated. Today's buyers simply do not want to put a lot of money into a home.

As the statistics indicate, sellers are still selling provided they are competitively priced to what the market will bear.

For more information on the Pepper Pike housing market or for a personal consultation, contact Dan Schuman of the Schuman Team at 216-346-3235 or visit us on the web at www.schumanteam.com.

2008 was a decent year in real estate in Moreland Hills. Despite all of the negativity in the media, it wasn't all doom and gloom here as 40 homes sold in 2008 compared to 43 homes that sold in 2007. Having an excellent rated school system and homes that typically sit on 1.5+ acre wooded lots makes Moreland Hills one of the most exclusive communities on the east side of Cleveland.

In terms of average sales price, home values in Moreland Hills have fluctuated over the last 5 years. In 2008, the average price of a home in Moreland Hills was $483,925. In 2007, the average price of a home was $531,436, which was up from 2006 when it was $500,272.

Market time has steadily increased as well over the last 5 years. In 2004, average market time in Moreland Hills was 99 days. This number has inched upwards and in 2008, it took 130 days, on average, for a home to sell in Moreland Hills.

Moreland Hills Luxury Homes - In terms of luxury homes, which are those that sell for over $500,000 per the Institute for Luxury Home Marketing, 10 luxury homes sold in Moreland Hills in 2008, which was exactly 25% of the total number of homes sold. This number is the lowest over the last 5 years. In 2007, 21 luxury homes sold in Moreland Hills, which accounted for almost 50% of all total sales.

Commentary: The problem over the last few years is that sellers had unreasonable expectations of the value of their home based on unprecedented appreciation during the early part of the decade. During the real boom years of 2003-2006, homes in Moreland Hills were statistically appreciating at much higher rates than normal. So, instead of focusing on realistic market conditions, many sellers would price their homes based on the market continuing to appreciate at an unrealistic pace. Many sellers merely priced themselves out of the market and did not properly react to the downturn. This can be evidenced by the fact that more than twice as many homes didn't sell in 2008 than sold ( 87 vs. 40 ).

As the statistics indicate, sellers are still selling provided they are competitively priced to what the market will bear.

For more information on the Moreland Hills housing market or for a personal consultation, contact Dan Schuman of the Schuman Team at 216-346-3235 or visit us on the web at www.schumanteam.com.

2008 was a good year in real estate in Beachwood. Despite all of the negativity in the media, it wasn't all doom and gloom here as there were as many homes sold in Beachwood in 2008 as there have been on average over the last 5 years. Having one of the top rated school districts in the state, great amenities, and low property taxes helps make Beachwood a desirable community in which to live.

Statistically, 97 homes sold in Beachwood in 2008, which is just a few less than sold in 2007 and more than sold in 2006.

Here's the not so good news. The average home price in Beachwood has steadily declined since 2005 when the average price for a home was $305,487. In 2008, the average price of a home in Beachwood was $249,545. In 2007, the average price of a home was $261,158.

Market time has steadily increased as well over the last 5 years. In 2004, average market time in Beachwood was 70 days. This number has slightly increased every year since and in 2008, it took 92 days, on average, for a home to sell in Beachwood. However, the average market time in the Cleveland metropolitan area was over 100 days, so homes are statistically selling quicker in Beachwood than in many areas of Cleveland.

Commentary: The problem over the last few years is that sellers had unreasonable expectations of the value of their home based on unprecedented appreciation during the early part of the decade. During the real boom years of 2003-2006, homes in Beachwood were statistically appreciating at 5-9% a year. Normal yearly appreciation here in Beachwood and Northeast Ohio in general is only about 2-3%. So, instead of focusing on realistic market conditions, many sellers would look to see what similar homes were selling for and add 10% to get their listing price as they assumed the market would keep going up at this unrealistic pace. Many sellers merely priced themselves out of the market and did not properly react to the downturn. It has taken 2 years for sellers here to realize that the market is depreciating and to become more realistic with their price if they really want to sell.

The Beachwood Luxury home market statistics have also significantly decreased over the last 5 years. Luxury homes in the Cleveland area, according to the Institute for Luxury Home Marketing, are considered those that sell for over $500,000. In 2005 and 2006, 9 luxury homes sold in Beachwood, which accounted for about 10% of all sales. This number has steadily declined to where only 2 homes over $500,000 sold in Beachwood in 2008. Added to that, there were many bank owned and distressed properties that sold as well. These two factors along with the credit crises and overall state of the economy helped to push prices down in Beachwood.

As the statistics indicate, sellers are still selling provided they are competitively priced to what the market will bear.

On the other side, news is great for home buyers. Rates are at historically low levels and there are a lot of affordably priced homes here in Beachwood. There has never been a better time for a buyer.

For more information on the Beachwood housing market or for a personal consultation, contact Dan Schuman of the Schuman Team at 216-346-3235 or visit us on the web at www.schumanteam.com.

2008 was a good year for Orange real estate. Having an excellent rated school system and having a limited inventory of homes makes Orange a desirable place to live.

I know what a lot of people are thinking, how could it have been a GOOD year when the media is constantly painting a picture of doom and gloom in the real estate market? Well, for starters, there were just as many homes SOLD in Orange in 2008 as in 2007, a total of 37 homes in each year. In fact, over the last 5 years, Orange has averaged just under 40 homes sold per year. Homes also sold quicker in 2008 than they did in 2007 and 2006.

Now here's the not so good news, the average sales price of a home in Orange went down in 2008. Here is a brief summary of a comparison between 2008 and 2007.

All Sales # of homes sold ave. sales price ave. days on market

2008 37 $301,994 90

2007 37 $402,863 133

Commentary: Overall, homes are selling in Orange and quicker than they have on average since 2005. The average sales price in 2008 of $301,994 vs. the average sales price of $402,863 in 2007 at first glance looks very concerning as it appears that homes in Orange decreased in value over 20%. However, with such a small number of sales, statistics can be somewhat misleading. Yes, values have gone down over the last 5 years but bank owned homes and short-sales contributed to the unusually low average sales price in 2008. Taking out distressed property, the average home price in Orange this past year was closer to $332,000 while the average sales price over the last 5 years has been $370,000.

The main problem over the last few years is that sellers had unreasonable expectations of the value of their home based on unprecedented appreciation during the early part of the decade. During the real boom years of 2003-2006, homes in Orange were statistically appreciating at 5-9% a year. Normal yearly appreciation here in Orange and Northeast Ohio in general is only about 2-3%. So, instead of basing their price on realistic market conditions, many sellers would look to see what similar homes were selling for and add 10% to get their listing price. They assumed the market would keep going up at this unrealistic pace. Many sellers merely priced themselves out of the market and did not properly react to the downturn. It has taken 2 years for sellers here to realize that the market is depreciating and to become more realistic with their price if they really want to sell.

On the other side, news is great for home buyers. Rates are at historically low levels and there are a lot of competitively priced homes here in Orange.

For more information on the Orange housing market or for a personal consultation, contact Dan Schuman at 216-346-3235 or visit us on the web at www.schumanteam.com.