About Warren County, OH

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

How's real estate in Mason, Ohio?

Out of 412 Homes currently on the market, there are still 157 homes listed from $250,000.00 to $400,000.00 thus accounting for close to 40% of all homes currently listed in the BORO. Interestingly enough if you were to look at the average home price in Springboro in 2003 and compare it to 2008 it actually shows a rate of APPRECIATION of 3%. That number is decieving however in that we're still seing price drops of $60,000.00 to $100,000.00 in homes originally priced in the $400,000.00 to $600,000.00 price range. The past few months those kind of price drops have leveled out - fortunatlely for the sellers and the market as a whole and in the Boro we seem to be at or getting close to our markets bottom. Only time will tell but I will continue to keep you informed. As always if you have any questions regarding these market numbers or if you want help pricing your home simply give me a call at 937-902-0191.

By now, you might have heard about the tax credit offered to first time home buyers. The government is offering a $7500 (or 10% the value of the home, which ever is less) tax credit to first time home buyers that purchase a home between April 9, 2008 to June 30, 2009. There are some income restrictions on the tax credit.

Obviously, this can be a significant tax incentive for a first time home buyer but I do have some mix emotions about this incentive. According the house bill, 2 years after a person claims this tax credit they have to start re-paying the tax at 6.67% per year for the next 15 years. If the individual decides to sell the property prior to paying the full the amount back, the remaining balance is due in that year. So, what this credit amounts to is an interest free loan.

My concern is when a person goes to sell the home and have to pay back the remaining balance. Most repeat buyers use the equity in their current home for the down payment on their next home. Although I feel this tax incentive can be helpful in kick starting the current market, what damage are we doing to any future markets. Are we creating situations where home owners will be stuck and are unable to sell in the future?

In short, I do feel first time home buyers should take advantage of this credit or interest free loan but I do believe that we as Real Estate Professionals need to make sure they understand the future effects so that they can plan accordingly.