Cleveland, Northeast OH Area Real Estate Market February 2013

According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region were lower in February than it was in February 2012.  However, the article was quick to point out that some real estate agents aren't advertising their listings, so the figures aren't accounting for those sales.  Carl DeMusz from the NORMLS advised "...that at least 89 sales -- many of them involving higher-end properties -- were held out of the listing service last month. Overall, sales are "at least slightly better than what we're showing," he added. "What we're seeing in the market is not the optimistic numbers. They're the conservative numbers."
Using the "listed" home sales (not accounting for these missing sales) comparing February 2012 to February 2013 show a small decline.  Among the 15 counties in Northeast Ohio, single family home sales are down 1.6% and condo sales remained flat.  January's data reported a 20.8% increase in sales contracts early in the year, indicating strong sales were probable in February and March.  Northeast Ohio is showing a 15% increase in single family home prices and 11.7% increase for condos, compared to last February. 

What I'm finding is that buyers are very active right now, but some are waiting for more homes to come onto the market.  I see sellers wanting to list as we approach April and warmer weather, which would indicate February as more of a "hiccup" in the improving local real estate market. 

The key point here is that the market is starting to stabilize and shifting to a seller's market.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have reached as low as they can go, when deciding the best time to make a purchase.  In fact, rates have already shown increases over the past couple months.  The data over the past several months indicates we have seen the bottom of the local real estate market.

By comparison, Northeast Ohio is currently being outpaced by Ohio's sales increase of 10.2% in February, however, Northeast Ohio is showing a higher price increase of 15% versus Ohio's 7.9%. The US market has also seen a 10.2% increase in sales from the year before, and Northeast Ohio is showing a higher price increase than the national average increase of 11.6%.  Nationally, 4.98 million homes have sold, which is just shy of meeting the lower part of the 5-6 million of annual home sales considered to be a normal or healthy range.  

I-X Indoor Amusement Park in Cleveland opens March 22

The I-X Indoor Amusement Park will be open once again, starting Friday, March 22 and running through Sunday, April 14. With over 20 acres of rides, fun activities, live entertainment, food and more, the amusement park is something families in Cleveland look forward to every spring.

This year’s highlights include the new Soaring Eagle Zipline, which takes a pair of riders up almost 70 feet above the I-X Center floor; the new White Water Ride, which features 58,000 gallons of water; and all new family friendly shows such as Mutts Gone Nuts, featuring loveable canines performing hilarious stunts and tricks.

The amusement park has also announced some great news: the price of admission has been lowered this year.

Amy Girton, show manager and marketing director, said, “I am pleased to announce that we have lowered our individual ticket pricing this year to the I-X Indoor Amusement Park, while also adding new entertainment and two new rides. If you haven’t been to the park recently, or maybe you come every year, this is the year to visit and save money, while also enjoying two new rides and our new Mutts Gone Nuts dog show that is both cute and funny for the who family to enjoy!”

The I-X Indoor Amusement Park is located at 6200 Riverside Drive in Cleveland. For more information, please visit www.ixamusementpark.com.

Mortgage Interest Rates Are On The Rise

Interest rates have reached a 6 month high for 30 year loans, with an average rate of 3.63%, up from last week's average of 3.52%.  For comparison, in November-December 2012 the rates were at a 3.35% national average. The average 15 year rate also saw a small increase from 2.76% to 2.79%.

The main contributors to the increase are the improved economy and the drop in unemployment rates.  In fact, unemployment rates dropped below expectations to 7.7%.  The short version of why these indicators affect interest rates, is due to consumer confidence and the obvious fact that if more people are working, there will be more people with the ability to make a home purchase.

So, what this means for a home buyer is that interest rates are on the rise.  They fluctuate daily and we will see peaks and valleys, but the rates will be trending upward as the economy improves.  That is why this year would be a great time to consider making a home purchase.  Economists are projecting that rates will reach 4% by year's end.  It's still a fantastic rate, but as the rates increase, it will affect a buyer's purchasing limit.

For sellers, we are seeing in most communities, that there is high buyer demand due to the rising rates and not enough homes for sale yet to meet the demand.  When there is high demand and lower supply, that indicates a trend leaning toward a seller's market.  That is why we are also seeing a slight increase in home sales prices, shorter days on the market and multiple offer situations on homes. 

This is a very exciting point-in-time where a homeowner can experience a better seller's market, and still take advantage of the low interest rates and great sales prices, before we see further increases in those rates and prices.  I would enjoy speaking to anyone considering a move, to discuss the local market and how it affects your specific situation and needs.

14th annual St. Patrick’s Day parade in Cleveland

It’s that time of year again when the streets of Cleveland turn green. The 14th annual St. Patrick’s Day parade will kick off at 2pm on Sunday, March 17 at Superior Avenue and East 18th Street. The sea of green will then march to Public Square and circle back to East 6th Street, spanning an approximately two mile route that will take about two hours and 15 minutes.

Parade organizer Shannon Corcoran said, “We try to keep a steady pace, but if it’s cold, they tend to move faster.”

Last year’s parade was fortunately held in sunny weather, which resulted in a crowd of about 400,000 joining in along the parade route.

The Cleveland parade holds the distinction of being the oldest and largest in the state, and has stayed within the top ten largest in the whole United States. This year’s instalment will have about 13,000 marchers participating, as well as a couple of Irish wolfhounds and 208 units.

Visitors can expect to see police officers dressed in sharp uniforms, high school marching bands in their glittering costumes and bagpipers in their Highland kilts. Kevin McGinty of Euclid will be the parade’s grand marshal, and Una Ellis of North Ridgeville will be the Irish Mother of the Year. Since this year will mark the 150th anniversary of the Cleveland Fire Department, the parade will see a lot of fire fighting gear as well.
This year’s parade theme is Irish immigrants coming to America.

Sesame Street Live: Elmo Makes Music in Cleveland

For parents of young children about 5 to 7 years old, a fun and educational show is coming to the PlayhouseSquare in Cleveland. Watch the famous furry red monster Elmo and all his Sesame Street friends including loveable yellow Big Bird and newer character Abby Cadabby in a special production of Sesame Street Live: Elmo Makes Music. The story is about Jenny, an enthusiastic new music teacher who comes to Sesame Street only to discover to her dismay that her musical instruments are missing. Jenny quickly makes friends with the Muppets, who come to her rescue and help her discover “instruments” they never knew existed, including rubber duckies, trash can lids and cookie jars. Together, Elmo and friends teach children that anyone can enjoy and make music, even using commonplace household objects to make a joyful sound.

Children of all ages will surely enjoy this special treat as they recognize the beloved Muppet characters. Accompanying adults will also enjoy hearing familiar songs such as “The Hustle,” “You Should be Dancing” and “Rockin’ Robin.” The show features almost two dozen songs, including instantly recognizable sing along classics such as “C is for Cookie” and “The Alphabet Song.”

Catch Sesame Street Live: Elmo Makes Music from Thursday, February 28 to Sunday, March 3 at the PlayhouseSquare’s State Theatre located at 1501 Euclid Avenue in Cleveland. Tickets range from $10 to $70 and are available online at www.playhousesquare.org.

January Pending Home Sales Up in All Regions

From the National Association of Realtors:

WASHINGTON (February 27, 2013) - Pending home sales rose in January, and have been above year-ago levels for the past 21 months, according to the National Association of Realtors®. There were healthy monthly gains in all regions but the West, which is constrained by limited inventory but was slightly improved.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from a downwardly revised 101.3 in December and is 9.5 percent above January 2012 when it was 96.7. The data reflect contracts but not closings.

The January index is the highest reading since April 2010 when it hit 110.9, just before the deadline for the home buyer tax credit. Aside from spikes induced by the tax credits, the last time there was a higher reading was in February 2007 when it reached 107.9.

Lawrence Yun, NAR chief economist, said inventory is the key to this year's housing market. "Favorable affordability conditions and job growth have unleashed a pent-up demand. Most areas are drawing down housing inventory, which has shifted the supply/demand balance to sellers in much of the country. It's also why we're experiencing the strongest price growth in more than seven years," he said.

"Over the near term, rising contract activity means higher home sales, but total sales for the year are expected to rise less than in 2012, while home prices are projected to rise more strongly because of inventory shortages," Yun said.

The PHSI in the Northeast rose 8.2 percent to 84.8 in January and is 10.5 percent higher than January 2012. In the Midwest the index increased 4.5 percent to 105.0 in January and is 17.7 percent above a year ago. Pending home sales in the South rose 5.9 percent to an index of 119.3 in January and are 11.3 percent higher January 2012. In the West the index edged up 0.1 percent in January to 102.1 but is 1.5 percent below a year ago.

Yun expects approximately 5.0 million existing-home sales this year. However, price growth could exceed a 7 percent gain projected for 2013 if inventory supplies remain low. Previously, NAR had expected 5.1 million existing-home sales in 2013, while prices were forecast to rise 5.5 to 6.0 percent.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. For additional commentary and consumer information, visit www.houselogic.com and http://retradio.com.

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* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

Also released today are annual data revisions. Each February, NAR Research incorporates a review of seasonal activity factors and fine-tunes historic data for the past three years based on the most recent findings. There are no changes to unadjusted or annual data.

NOTE: Existing-home sales for February will be reported March 21 and the next Pending Home Sales Index will be on March 27. The Investment and Vacation Home Buyers Survey, covering transactions in 2012, is scheduled for April 2; all release times are 10:00 a.m. EDT.