According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper,
homes sales in the region continue to surpass last year's sales
figures. Lower home inventory, higher rental prices and higher buyer
demand due to low
(but climbing) interest rates, is driving this increase in activity and increase in
sales prices. The low inventory continues to increase new construction demand, as well.
Sales
comparing August 2012 to August 2013 show increasing sales figures by double digits, like they did in the past 3 months.
Among the 15 counties in Northeast Ohio,
single family
home sales are up 11.3% and 19.8% for condominium sales. From July to August 2013, sales rose by 1.2%.
By
comparison, Northeast Ohio is showing a 8% price increase from last
year, with the state of Ohio's at 3.4%. Ohio's sales volume increase was
also up by over 16.9% from August 2012. The US market saw a 14.7%
increase
in sales price from the year before, and is showing a sales volume
increase of
only 13.2%. Northeast Ohio's price increases have stabilized recently, while Ohio and the US have dipped a bit.
Ohio just marked 26 straight months of annual sales gains, and nationwide sales of existing homes
hit their highest level in 6.5 years. Lawrence Yun, the chief economist for the National Association of Realtors, described
the August jump as a "temporary peak," driven by higher interest rates
on home loans. He said he expects sales to be uneven over the coming
months and that rising sales prices and restrictive lending may hold
back sales growth.
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 begun to increase over the past
several months, hovering around 4.5%.
This is a
great time for buyers who also have a home to sell, because rates are
still relatively low on the buying side, but home values have risen in
many areas to improve the financial return on the selling side. If the
economy continues to improve, buyers in the current market will be able
to realize value gains for the homes they purchase as well.
Tuesday, September 24, 2013
Friday, September 13, 2013
For Home Sellers: Understanding The Home Buyer
As the seller, you can control three factors that will affect the sale of your home:
* The home's condition
* Asking price
* Marketing strategy
However, it's important to note that there are numerous other factors that influence a buyer, and you need to understand these consumer trends when you enter the sellers' market. The more your home matches these qualifications, the more competitive it will be in the marketplace. Your real estate agent can advise you on how to best position and market your home to overcome any perceived downsides.
Location
Unfortunately, the most influential factor in determining your home's appeal to buyers is something you can't control: its location. According to the National Association of REALTORS(r), neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.
Size
While some buyers want to simplify their lives and downsize to a smaller home, home sizes in general have continued to increase over the decades, nearly doubling in size since the 1950s. Smaller homes typically appeal to first-time home buyers and "empty nesters," or couples whose children have grown up and moved out.
Amenities
Preferences in floor plans and amenities go in and out of fashion, and your real estate agent can inform you of the "hot ticket" items that are selling homes in your market. If your home lacks certain features, you can renovate to increase its appeal, but be forewarned: That's not always the right move. Using market conditions and activity in your neighborhood as a gauge, your agent can help you determine whether the investment is likely to help or hinder your profit margin and time on the market.
* The home's condition
* Asking price
* Marketing strategy
However, it's important to note that there are numerous other factors that influence a buyer, and you need to understand these consumer trends when you enter the sellers' market. The more your home matches these qualifications, the more competitive it will be in the marketplace. Your real estate agent can advise you on how to best position and market your home to overcome any perceived downsides.
Location
Unfortunately, the most influential factor in determining your home's appeal to buyers is something you can't control: its location. According to the National Association of REALTORS(r), neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.
Size
While some buyers want to simplify their lives and downsize to a smaller home, home sizes in general have continued to increase over the decades, nearly doubling in size since the 1950s. Smaller homes typically appeal to first-time home buyers and "empty nesters," or couples whose children have grown up and moved out.
Amenities
Preferences in floor plans and amenities go in and out of fashion, and your real estate agent can inform you of the "hot ticket" items that are selling homes in your market. If your home lacks certain features, you can renovate to increase its appeal, but be forewarned: That's not always the right move. Using market conditions and activity in your neighborhood as a gauge, your agent can help you determine whether the investment is likely to help or hinder your profit margin and time on the market.
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