Northfield, OH

September 2010 real estate market statistics and Market Conditions Report for the Northfield, Northfield Center and Northfield Village, Ohio communities in Northeast Ohio

Absorption Rates and Months Housing Supply

These two terms are one piece of the puzzle to help real estate agents, appraisers, home sellers and buyers alike make sense out of the real estate market.

This is a little-known, but effective tool, if used in proper context, to help a home seller or buyer understand the market conditions for the home they wish to sell or buy.

The easiest way to define these two terms is with an example:

Absorption Rates (AR)- The rate at which homes are selling (ie. absorbed), over a specific time period, typically 12 months. This is beneficial in determining supply and demand trends for the local market.

Months Housing Supply (MHS) - How long it will take, in number of months, for all the current homes for sale to be sold.

Formulas:

Monthly Absorption Rate = # of homes sold in the past twelve months / 12 Months.

Months Housing Supply = # of currently active homes for sale / Monthly Absorption Rate

Reference Guideline:

# Months to Sell Type of Market

1-4 Sellers

5-6 Balanced

7+ Buyers

Note: Six (6) months of inventory is considered a balanced market.

As is true with everything statistical, one has to really know when to apply this tool, under what circumstances is it relevant, and what are the constraints, as with everything in real estate, no individual property fits neatly into a box (no pun intended) or equation.

Here are a few examples of a few constraints:

• Seasonal fluctuations - If more homes sell in the spring and summer months, what should the sampling period be?
• Expired Listings - How should listings that have expired and been re-listed be treated?
• Selecting Active and Sold Homes - What homes should be selected? What criteria should be used?
• Selecting the AR Time Period - Is 3 months enough? 6? 12?
• Is there a negative or positive trend underway? How do you compensate for the trend?
• Since these are median #s, how does my home relate?
• What can I do to make my home defy the median?
• Do watershed events (say...the October 2008 Economic/Credit/Housing meltdown) affect: time periods? the statistics themselves, the subset of homes selected, etc.?
• Is new construction affecting the supply or demand of nearby properties?

A question that sellers typically raise after reviewing this information:

Does this mean my home will take 9-11 months (Median MHS) to sell? While there is no easy answer here, the answer is: It depends. Many factors go into how quickly or long a home will sell. See my post titled "Your home is worth whatever a buyer is willing to pay for it" which talks about the many factors to consider when selling a home. We sell homes that defy the median, and are at the low end of the statistics when sellers listen to our advice and adopt our home preparation, staging and pricing considerations. While nothing is guaranteed, it's all about maximizing your opportunities relative to your competition and constraints.

Using a concrete example below, taken from the Northeast Ohio MLS, this report was run for the Cities of Northfield, Northfield Center & Northfield Village, all single-family homes, so to see what is happening in the community as a whole:

Source: NEOHREX. Information deemed reliable but is not guaranteed.

A couple of observations from looking at the above table:

• The MHS has improved greatly since the last May 2010 Northfield, Northfield Village and Northfield Center Ohio Real Estate Market Conditions Report. The MLS is starting to near a balanced market and is down significantly from 11-25 months reported in the last report.
  
• While the MLS is very encouraging, it remains to be seen what will happen to the inventory now that the federal tax incentives have expired. We will be watching closely to see if the inventory begins to increase.
• The May 2010 Northfield, Northfield Village and Northfield Center Ohio real estate market was relatively unchanged from the March 2010 Northfield Northfield Village and Northfield Center Ohio real estate market report.

Note: This is an example at a community level. The selection criteria would be customized to be relevant for a given property so as to make the data more meaningful.

Note: As of 4/1/09, Fannie Mae is requiring appraisers to compile the information you see above to be used as a part of a Market Conditions Addendum for appraisals.

Olsen Ziegler Realty -- A $marter Way to buy and sell your Northfield, Northfield Center & Northfield Village, Ohio Home

May 2010 real estate market statistics and Market Conditions Report for the Northfield, Northfield Center and Northfield Village, Ohio communities in Northeast Ohio

Absorption Rates and Months Housing Supply

These two terms are one piece of the puzzle to help real estate agents, appraisers, home sellers and buyers alike make sense out of the real estate market.

This is a little-known, but effective tool, if used in proper context, to help a home seller or buyer understand the market conditions for the home they wish to sell or buy.

The easiest way to define these two terms is with an example:

Absorption Rates (AR)- The rate at which homes are selling (ie. absorbed), over a specific time period, typically 12 months. This is beneficial in determining supply and demand trends for the local market.

Months Housing Supply (MHS) - How long it will take, in number of months, for all the current homes for sale to be sold.

Formulas:

Monthly Absorption Rate = # of homes sold in the past twelve months / 12 Months.

Months Housing Supply = # of currently active homes for sale / Monthly Absorption Rate

Reference Guideline:

# Months to Sell Type of Market

1-4 Sellers

5-6 Balanced

7+ Buyers

Note: Six (6) months of inventory is considered a balanced market.

As is true with everything statistical, one has to really know when to apply this tool, under what circumstances is it relevant, and what are the constraints, as with everything in real estate, no individual property fits neatly into a box (no pun intended) or equation.

Here are a few examples of a few constraints:

• Seasonal fluctuations - If more homes sell in the spring and summer months, what should the sampling period be?
• Expired Listings - How should listings that have expired and been re-listed be treated?
• Selecting Active and Sold Homes - What homes should be selected? What criteria should be used?
• Selecting the AR Time Period - Is 3 months enough? 6? 12?
• Is there a negative or positive trend underway? How do you compensate for the trend?
• Since these are median #s, how does my home relate?
• What can I do to make my home defy the median?
• Do watershed events (say...the October 2008 Economic/Credit/Housing meltdown) affect: time periods? the statistics themselves, the subset of homes selected, etc.?
• Is new construction affecting the supply or demand of nearby properties?

A question that sellers typically raise after reviewing this information:

Does this mean my home will take 15-28 months (Median MHS) to sell? While there is no easy answer here, the answer is: It depends. Many factors go into how quickly or long a home will sell. See my post titled "Your home is worth whatever a buyer is willing to pay for it" which talks about the many factors to consider when selling a home. We sell homes that defy the median, and are at the low end of the statistics when sellers listen to our advice and adopt our home preparation, staging and pricing considerations. While nothing is guaranteed, it's all about maximizing your opportunities relative to your competition and constraints.

Using a concrete example below, taken from the Northeast Ohio MLS, this report was run for the Cities of Northfield, Northfield Center & Northfield Village, all single-family homes, so to see what is happening in the community as a whole:

Source: NEOHREX. Information deemed reliable but is not guaranteed.

A couple of observations from looking at the above table:

• The MHS is much higher than a balanced market, so the current market (and true as well over the past year) favors buyers.
• Sales are up in the current quarter, which is not entirely surprising as the first federal tax 8K tax credit that expired on 11/30/09 drove sales higher, whereas the extended and expanded tax credit which is set to expire on 4/30/10 has also "moved the market forward" in that buyers are moving up the timeline of their home purchases to take advantage of the 6.5K/8K federal tax credits.
• The May 2010 Northfield, Northfield Village and Northfield Center Ohio real estate market is relatively unchanged from the March 2010 Northfield Northfield Village and Northfield Center Ohio real estate market report.

Note: This is an example at a community level. The selection criteria would be customized to be relevant for a given property so as to make the data more meaningful.

Note: As of 4/1/09, Fannie Mae is requiring appraisers to compile the information you see above to be used as a part of a Market Conditions Addendum for appraisals.

Olsen Ziegler Realty -- A $marter Way to buy and sell your Northfield, Northfield Center & Northfield Village , Ohio Home

Here are the March 2010 real estate market statistics and Market Conditions Report for the Northfield, Northfield Center and Northfield Village, Ohio communities in Northeast Ohio

Absorption Rates and Months Housing Supply

These two terms are one piece of the puzzle to help real estate agents, appraisers, home sellers and buyers alike make sense out of the real estate market.

This is a little-known, but effective tool, if used in proper context, to help a home seller or buyer understand the market conditions for the home they wish to sell or buy.

The easiest way to define these two terms is with an example:

Absorption Rates (AR)- The rate at which homes are selling (ie. absorbed), over a specific time period, typically 12 months. This is beneficial in determining supply and demand trends for the local market.

Months Housing Supply (MHS) - How long it will take, in number of months, for all the current homes for sale to be sold.

Formulas:

Monthly Absorption Rate = # of homes sold in the past twelve months / 12 Months.

Months Housing Supply = # of currently active homes for sale / Monthly Absorption Rate

Reference Guideline:

# Months to Sell Type of Market

1-4 Sellers

5-6 Balanced

7+ Buyers

Note: Six (6) months of inventory is considered a balanced market.

As is true with everything statistical, one has to really know when to apply this tool, under what circumstances is it relevant, and what are the constraints, as with everything in real estate, no individual property fits neatly into a box (no pun intended) or equation.

Here are a few examples of a few constraints:

• Seasonal fluctuations - If more homes sell in the spring and summer months, what should the sampling period be?
• Expired Listings - How should listings that have expired and been re-listed be treated?
• Selecting Active and Sold Homes - What homes should be selected? What criteria should be used?
• Selecting the AR Time Period - Is 3 months enough? 6? 12?
• Is there a negative or positive trend underway? How do you compensate for the trend?
• Since these are median #s, how does my home relate?
• What can I do to make my home defy the median?
• Do watershed events (say...the October 2008 Economic/Credit/Housing meltdown) affect: time periods? the statistics themselves, the subset of homes selected, etc.?
• Is new construction affecting the supply or demand of nearby properties?

A question that sellers typically raise after reviewing this information:

Does this mean my home will take 19-20 months (Median MHS) to sell? While there is no easy answer here, the answer is: It depends. Many factors go into how quickly or long a home will sell. See my post titled "Your home is worth whatever a buyer is willing to pay for it" which talks about the many factors to consider when selling a home. We sell homes that defy the median, and are at the low end of the statistics when sellers listen to our advice and adopt our home preparation, staging and pricing considerations. While nothing is guaranteed, it's all about maximizing your opportunities relative to your competition and constraints.

Using a concrete example below, taken from the Northeast Ohio MLS, this report was run for the Cities of Northfield, Northfield Center & Northfield Village, all single-family homes, so to see what is happening in the community as a whole:

Source: NEOHREX. Information deemed reliable but is not guaranteed.

A couple of observations from looking at the above table:

• The MHS is much higher than a balanced market, so the current market (and true as well over the past year) favors buyers.
• Sales are down in the current quarter, which is not entirely surprising as the first federal tax 8K tax credit that expired on 11/30/09 drove sales higher, whereas the extended and expanded tax credit which is set to expire on 4/30/10 does not appear to be having as much of a positive impact. The median sales price is up from the prior year, not a bad position to be in considering the current state of the economy.

Note: This is an example at a community level. The selection criteria would be customized to be relevant for a given property so as to make the data more meaningful.

Note: As of 4/1/09, Fannie Mae is requiring appraisers to compile the information you see above to be used as a part of a Market Conditions Addendum for appraisals.

Olsen Ziegler Realty -- A $marter Way to buy and sell your Northfield, Northfield Center & Northfield Village , Ohio Home

Here are the February 2010 real estate market statistics for the Northfield, Northfield Center and Northfield Village, Ohio communities in Northeast Ohio

Absorption Rates and Months Housing Supply

These two terms are one piece of the puzzle to help real estate agents, appraisers, home sellers and buyers alike make sense out of the real estate market.

This is a little-known, but effective tool, if used in proper context, to help a home seller or buyer understand the market conditions for the home they wish to sell or buy.

The easiest way to define these two terms is with an example:

Absorption Rates (AR)- The rate at which homes are selling (ie. absorbed), over a specific time period, typically 12 months. This is beneficial in determining supply and demand trends for the local market.

Months Housing Supply (MHS) - How long it will take, in number of months, for all the current homes for sale to be sold.

Formulas:

Monthly Absorption Rate = # of homes sold in the past twelve months / 12 Months.

Months Housing Supply = # of currently active homes for sale / Monthly Absorption Rate

Reference Guideline:

# Months to Sell Type of Market

1-4 Sellers

5-6 Balanced

7+ Buyers

Note: Six (6) months of inventory is considered a balanced market.

As is true with everything statistical, one has to really know when to apply this tool, under what circumstances is it relevant, and what are the constraints, as with everything in real estate, no individual property fits neatly into a box (no pun intended) or equation.

Here are a few examples of a few constraints:

• Seasonal fluctuations - If more homes sell in the spring and summer months, what should the sampling period be?
• Expired Listings - How should listings that have expired and been re-listed be treated?
• Selecting Active and Sold Homes - What homes should be selected? What criteria should be used?
• Selecting the AR Time Period - Is 3 months enough? 6? 12?
• Is there a negative or positive trend underway? How do you compensate for the trend?
• Since these are median #s, how does my home relate?
• What can I do to make my home defy the median?
• Do watershed events (say...the October 2008 Economic/Credit/Housing meltdown) affect: time periods? the statistics themselves, the subset of homes selected, etc.?
• Is new construction affecting the supply or demand of nearby properties?

A question that sellers typically raise after reviewing this information:

Does this mean my home will take 12-28 months (Median MHS) to sell? While there is no easy answer here, the answer is: It depends. Many factors go into how quickly or long a home will sell. See my post titled "Your home is worth whatever a buyer is willing to pay for it" which talks about the many factors to consider when selling a home. We sell homes that defy the median, and are at the low end of the statistics when sellers listen to our advice and adopt our home preparation, staging and pricing considerations. While nothing is guaranteed, it's all about maximizing your opportunities relative to your competition and constraints.

Using a concrete example below, taken from the Northeast Ohio MLS, this report was run for the Cities of Northfield, Northfield Center & Northfield Village, all single-family homes, so to see what is happening in the community as a whole:

Source: NEOHREX. Information deemed reliable but is not guaranteed.

A couple of observations from looking at the above table:

• The MHS is much higher than a balanced market, so the current market (and true as well over the past year) favors buyers.
• Sales are down in the current quarter, which should be expected as the winter season is typically the slowest time of the year to sell a home. That said, with the first time home buyer tax credit that expired on 11/30/09 and extended through 4/30/10, the anticipation for greater sales was expected. The median sales price is up from the prior year, not a bad position to be in considering the current state of the economy.

Note: This is an example at a community level. The selection criteria would be customized to be relevant for a given property so as to make the data more meaningful.

Note: As of 4/1/09, Fannie Mae is requiring appraisers to compile the information you see above to be used as a part of a Market Conditions Addendum for appraisals.

Olsen Ziegler Realty -- A $marter Way to buy and sell your Northfield, Northfield Center & Northfield Village , Ohio Home

My friend Glen and I hiked the Brandywine Gorge Trail yesterday, starting at Brandywine Falls. While hiking in the Cuyahoga Valley National Park (our nation's 3^rdmost visited park) is always memorable and unique (such as the picture below of a raccoon snoozing high in a tree), we descending the many stairs along the gorge of the Brandywine River to view the 60' waterfalls at Brandywine Falls.

The falls contain Berea sandstone on top, which is a material that is found throughout the Greater Cleveland area - from walkways, to commercial buildings downtown, to many other uses. There are different layers of rock formed several hundred million years ago.

The falls have a varied past when in 1814, George Wallace built a home (now the Inn at Brandywine Falls) and ran a saw mill, grist mill and woolen mill.

We connected to the Ohio & Erie Canal Towpath Trail, which is used by walkers, hikers, joggers and bicyclers alike. We headed south to the small Boston area which is home to the Park's display of the rich history of boat building on the canal back in the 1800s and a display of local artist paintings in the old converted M.D. Garage.

Content and photos copyrighted by Chris Olsen and protected by CopyScape.

Olsen Ziegler Realty -- A Smarter Way to buy and sell your Greater Cleveland, Ohio Home