According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper,
homes sales in the region decreased from March to April. Lower home inventory, higher rental prices and higher buyer
demand due to low
(but climbing) interest rates, have been driving this increase in activity and increase in
sales prices over the past year or so. While sales volume is a bit lower, sales prices have shown an increase.
Sales
from
March to April do show an increase, however, sales from April 2013
to April 2014 show a decline.
Among the 15 counties in Northeast Ohio, we saw an 8.8% increase for
single family homes and a 31.6% increase in sales volume from last
month. Single family
home sales are down 2.6% and condominium sales are down 4.2% from April
of last year. Local home prices continue to increase, but at a slower
pace than 2013. We saw a 3.9% increase in annual price gains, up from
2.9% in February.
Ohio's
sales volume showed an increase of 3.8% from March to April. Ohio's sales
prices have increased by 7.4% from last April and national figures have
shown a 5.2% gain. Ohio and
Northeast Ohio's price increases have
slowed or stabilized recently, but the increases are what would be typically expected for the region.
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 decreased
slightly, hovering around 4.2%. A recent report indicates that
economists are projecting rates to rise to 5-5.5% by year-end.
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.
Friday, May 30, 2014
Tuesday, April 29, 2014
Rising Mortgage Rates Expected - Consumer Impact
It is going to happen...interest rates will rise as the economy and real
estate markets improve. Based on what the Federal Reserve tells us,
that scenario may be set in motion soon.
The Fed isn't expected to raise base interest rates when they meet this week, but it's expected that they will send signals of what is to come. They said that they would consider raising rates when unemployment goes below 6.5% and inflation is hovering around 2.0%, but the Fed will look at many more issues before deciding to raise rates.
Interest rates have been staying around 4.3%-4.5% for 30 year home purchase financing over the past several months, which is about 1% higher than a year ago. Rates are expected to climb to between 5 and 5.5% by the end of 2014.
Of course, rising interest rates will have an effect on purchasing power. A home buyer will be able to finance a higher sales price now versus what they can qualify for as rates increase. At 4.5% for 30 years, the principle and interest payment is $1,013.37 on a $200,000 mortgage loan.
See below for principle and interest calculations at rising interest rates:
$200,000 at 4.50% = $1,013.37
$200,000 at 4.75% = $1,043.29
$200,000 at 5.00% = $1,073.64
$200,000 at 5.25% = $1,104.41
$200,000 at 5.50% = $1,135.48
CLICK HERE to perform mortgage calculations for your price range
As you can see, going from 4.5% to 5.5% causes an 11% increase in monthly payment. Assuming a $200,000 mortgage is a buyer's maximum approval at 4.5%, a 5.5% interest rate will reduce a buyer's spending power to $178,475. Couple that with rising home prices (6.1% increase overall last year) in many locations, one can see the significance. This will affect home buyers, as well as home sellers.
Rate increases are expected to be gradual throughout the year, but they are expected to rise. Rates are still at or near historical lows we had not experienced priot to the past several years. Before that, 6-7% rates were considered great. The point here is to provide some persective on how rates will affect home purchases in the future.
The Fed isn't expected to raise base interest rates when they meet this week, but it's expected that they will send signals of what is to come. They said that they would consider raising rates when unemployment goes below 6.5% and inflation is hovering around 2.0%, but the Fed will look at many more issues before deciding to raise rates.
Interest rates have been staying around 4.3%-4.5% for 30 year home purchase financing over the past several months, which is about 1% higher than a year ago. Rates are expected to climb to between 5 and 5.5% by the end of 2014.
Of course, rising interest rates will have an effect on purchasing power. A home buyer will be able to finance a higher sales price now versus what they can qualify for as rates increase. At 4.5% for 30 years, the principle and interest payment is $1,013.37 on a $200,000 mortgage loan.
See below for principle and interest calculations at rising interest rates:
$200,000 at 4.50% = $1,013.37
$200,000 at 4.75% = $1,043.29
$200,000 at 5.00% = $1,073.64
$200,000 at 5.25% = $1,104.41
$200,000 at 5.50% = $1,135.48
CLICK HERE to perform mortgage calculations for your price range
As you can see, going from 4.5% to 5.5% causes an 11% increase in monthly payment. Assuming a $200,000 mortgage is a buyer's maximum approval at 4.5%, a 5.5% interest rate will reduce a buyer's spending power to $178,475. Couple that with rising home prices (6.1% increase overall last year) in many locations, one can see the significance. This will affect home buyers, as well as home sellers.
Rate increases are expected to be gradual throughout the year, but they are expected to rise. Rates are still at or near historical lows we had not experienced priot to the past several years. Before that, 6-7% rates were considered great. The point here is to provide some persective on how rates will affect home purchases in the future.
Thursday, April 24, 2014
Cleveland, Northeast OH Area Real Estate Market March 2014
According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper,
homes sales in the region decreased from February to March. Lower home inventory, higher rental prices and higher buyer
demand due to low
(but climbing) interest rates, have been driving this increase in activity and increase in
sales prices over the past year or so.
Sales and price gains actually dipped a bit recently, however, which is
being attributed to the harsh winter weather experienced in the area.
Sales from February to March do show an increase, however, sales from March 2013 to March 2014 show a decline. Among the 15 counties in Northeast Ohio, single family home sales are down 5.9% and condominium sales are down 15.5%. Year-to-date, local sales of new and existing homes were lagging by nearly 1.7%. Single family home prices were up 1.8%, compared to last year. Condos were up 7.7% higher than March 2013.
Ohio's sales volume showed a decline by 6.6% from March 2013, while the US market is experienced a sales volume decrease of 7.5%. Ohio's sales prices have increased by 3.3% from last March and national figures have shown a 7.9% gain. Ohio and Northeast Ohio's price increases have slowed or stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation.
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 increased slightly, 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.
Sales from February to March do show an increase, however, sales from March 2013 to March 2014 show a decline. Among the 15 counties in Northeast Ohio, single family home sales are down 5.9% and condominium sales are down 15.5%. Year-to-date, local sales of new and existing homes were lagging by nearly 1.7%. Single family home prices were up 1.8%, compared to last year. Condos were up 7.7% higher than March 2013.
Ohio's sales volume showed a decline by 6.6% from March 2013, while the US market is experienced a sales volume decrease of 7.5%. Ohio's sales prices have increased by 3.3% from last March and national figures have shown a 7.9% gain. Ohio and Northeast Ohio's price increases have slowed or stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation.
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 increased slightly, 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, April 1, 2014
Cleveland, Northeast OH Area Real Estate Market February 2014
According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper,
homes sales in the region increased from January to February. Lower home inventory, higher rental prices and higher buyer
demand due to low
(but climbing) interest rates, have been driving this increase in activity and increase in
sales prices over the past year or so. Prices actually dipped a bit recently, however.
Low inventories continue to prevent some would-be buyers from making deals. Fewer homeowners put their properties on the market in February, when compared with listing-service figures from January. Overall, new listings are down 8.3% this year.
Sales comparing February 2013 to February 2014 still show increasing sales figures. Among the 15 counties in Northeast Ohio, single family home sales are up 3.6% but a slight decline in condominium sales. and is showing a 5.7% price decrease from last February,
Ohio's sales volume showed a decline by 4.3% from February 2013, while the US market is experienced a sales volume decrease of 7.1%. Ohio and Northeast Ohio's price increases have slowed or stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. There is still a concern that home prices are rising faster than income 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 decreased slightly, 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.
Low inventories continue to prevent some would-be buyers from making deals. Fewer homeowners put their properties on the market in February, when compared with listing-service figures from January. Overall, new listings are down 8.3% this year.
Sales comparing February 2013 to February 2014 still show increasing sales figures. Among the 15 counties in Northeast Ohio, single family home sales are up 3.6% but a slight decline in condominium sales. and is showing a 5.7% price decrease from last February,
Ohio's sales volume showed a decline by 4.3% from February 2013, while the US market is experienced a sales volume decrease of 7.1%. Ohio and Northeast Ohio's price increases have slowed or stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. There is still a concern that home prices are rising faster than income 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 decreased slightly, 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.
Wednesday, January 29, 2014
Cleveland, Northeast OH Area Real Estate Market December 2013
According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer
newspaper,
annual homes sales in the region increased overall in 2013 from 2012 by
11.8%. Lower home inventory, higher rental prices and higher buyer
demand due to low
(but climbing) interest rates, have been driving this increase in
activity and increase in
sales prices over the past year or so.
Sales comparing December 2012 to December 2013 slid slightly. Among the 15 counties in Northeast Ohio, single family home sales were down a percentage points.
By comparison, Northeast Ohio is showing a 6.1% price increase from last year (3.1% for condos), with the state of Ohio's at 5.2%. Ohio's sales volume increase was also up by over 14.7% compared to 2012. The US market saw a 11.5% increase in sales price from 2012 to 2013, and is showing a sales volume increase of 9.1%. Ohio and Northeast Ohio's price increases have stabilized/slow down recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. There is still a concern that home prices are rising faster than income growth.
Nationally, "Existing-home sales have risen nearly 20 percent since 2011, with job growth, record-low mortgage interest rates and large pent-up demand driving the market," said Lawrence Yun, chief economist for the national Realtors. "We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population."
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 decreased slightly, 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.
Sales comparing December 2012 to December 2013 slid slightly. Among the 15 counties in Northeast Ohio, single family home sales were down a percentage points.
By comparison, Northeast Ohio is showing a 6.1% price increase from last year (3.1% for condos), with the state of Ohio's at 5.2%. Ohio's sales volume increase was also up by over 14.7% compared to 2012. The US market saw a 11.5% increase in sales price from 2012 to 2013, and is showing a sales volume increase of 9.1%. Ohio and Northeast Ohio's price increases have stabilized/slow down recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. There is still a concern that home prices are rising faster than income growth.
Nationally, "Existing-home sales have risen nearly 20 percent since 2011, with job growth, record-low mortgage interest rates and large pent-up demand driving the market," said Lawrence Yun, chief economist for the national Realtors. "We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population."
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 decreased slightly, 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.
Thursday, December 19, 2013
Mortgage Rates Expected to Increase, Fed To Reduce Bond Purchases
Ben Bernake announced yesterday that the Federal Reserve will begin reducing the amount of bonds it will purchase, from $85 billion
per month to $75 billion. This is the first step taken to "take off
the training wheels" on the federal stimulus it created to get the
United States out of it's recession. The Fed’s purchases will be
divided between $40 billion in Treasuries
and $35 billion in mortgage bonds starting in January, Bernanke said.
“Reflecting cumulative progress and an improved outlook for the job market, the committee decided today to modestly reduce the monthly pace at which it is adding to the longer-term securities on its balance sheet,” Bernanke said at a press conference in Washington today after a meeting of the Federal Open Market Committee.
Stocks rallied on the good news reported regarding the improved economy and reduced unemployment figures. The Fed said its benchmark interest rate is likely to stay low “well past the time that the unemployment rate declines below 6.5 percent, especially if projected inflation continues to run below” the Fed’s 2 percent goal.
Since the Fed began signaling in May that it may soon begin to dial down the purchases, interest rates have drifted higher, with the average 30-year fixed mortgage rate rising to 4.42% from 3.35% in May. The rising rates helped convince the Fed to delay tapering in September. Rates are expected to continue to increase, but not at an immediate, drastic amount. However, it will have an affect on the purchasing power for home buyers.
Further complicating the picture is that Fed Chairman Ben Bernanke plans to step down when his term ends in January. Vice Chair Janet Yellen, who has been nominated to succeed him, has expressed an even more pro-growth approach but must deal with a policymaking committee with diverse views of the stimulus.
*Information source from Bloomberg News and USA Today
“Reflecting cumulative progress and an improved outlook for the job market, the committee decided today to modestly reduce the monthly pace at which it is adding to the longer-term securities on its balance sheet,” Bernanke said at a press conference in Washington today after a meeting of the Federal Open Market Committee.
Stocks rallied on the good news reported regarding the improved economy and reduced unemployment figures. The Fed said its benchmark interest rate is likely to stay low “well past the time that the unemployment rate declines below 6.5 percent, especially if projected inflation continues to run below” the Fed’s 2 percent goal.
Since the Fed began signaling in May that it may soon begin to dial down the purchases, interest rates have drifted higher, with the average 30-year fixed mortgage rate rising to 4.42% from 3.35% in May. The rising rates helped convince the Fed to delay tapering in September. Rates are expected to continue to increase, but not at an immediate, drastic amount. However, it will have an affect on the purchasing power for home buyers.
Further complicating the picture is that Fed Chairman Ben Bernanke plans to step down when his term ends in January. Vice Chair Janet Yellen, who has been nominated to succeed him, has expressed an even more pro-growth approach but must deal with a policymaking committee with diverse views of the stimulus.
*Information source from Bloomberg News and USA Today
Friday, November 22, 2013
Cleveland, Northeast OH Area Real Estate Market October 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 increased from September to October. Lower home inventory, higher rental prices and higher buyer
demand due to low
(but climbing) interest rates, have been driving this increase in activity and increase in
sales prices over the past year or so.
Sales comparing October 2012 to October 2013 still show increasing sales figures. Among the 15 counties in Northeast Ohio, single family home sales are up 14.9% and 10.4% for condominium sales.
By comparison, Northeast Ohio is showing a 3.8% price increase from last year, with the state of Ohio's at 2.3%. Ohio's sales volume increase was also up by over 8% from October 2012. The US market saw a 12.8% increase in sales price from the year before, and is showing a sales volume decrease of 3.2%. Ohio and Northeast Ohio's price increases have stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. There is still a concern that home prices are rising faster than income 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 decreased slightly, hovering around 4.3%.
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.
Sales comparing October 2012 to October 2013 still show increasing sales figures. Among the 15 counties in Northeast Ohio, single family home sales are up 14.9% and 10.4% for condominium sales.
By comparison, Northeast Ohio is showing a 3.8% price increase from last year, with the state of Ohio's at 2.3%. Ohio's sales volume increase was also up by over 8% from October 2012. The US market saw a 12.8% increase in sales price from the year before, and is showing a sales volume decrease of 3.2%. Ohio and Northeast Ohio's price increases have stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. There is still a concern that home prices are rising faster than income 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 decreased slightly, hovering around 4.3%.
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.
Thursday, November 14, 2013
11 Reasons To List Your Home During The Holidays
You’ve heard it from real estate agents before. “The Winter season is slow.” Or, “No one is really buying or selling.” And even, “I’ll get started in the New Year, it’s a new start right?” Wrong. The truth is, it’s better to be ahead than behind.
Here are 11 reasons to have your home listed during the holidays:
11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money! This will allow you to sell high and buy low.
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.
9. Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays.
8. January is traditionally the month for employees to begin new jobs. Since transfers cannot wait until Spring to buy, you need to be on the market during the Holidays to capture the market.
7. Some people must buy before the end of the year for tax reasons.
6. Buyers have more time to look for a home during the Holidays than they do during a work week.
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price.
4. Houses may show better when decorated for the Holidays.
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less supply and more demand means more money for you.
2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you.
And the number one reason why your seller should list during the Holidays…
1. People who look for homes during the Holidays are more serious buyers!
*Information courtesy of the Keller Williams Greater Cleveland SW blog
Wednesday, October 23, 2013
Cleveland, Northeast OH Area Real Estate Market September 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 dropped from August to September, but 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, has driving this increase in activity and increase in
sales prices over the past year. Economist say that the recent government shutdown and consumer uncertainty attributed to the reduced sales volume in September.
Sales comparing September 2012 to September 2013 still show increasing sales figures. Among the 15 counties in Northeast Ohio, single family home sales are up 15.2% and 3.1% for condominium sales.
By comparison, Northeast Ohio is showing a 3% price increase from last year, with the state of Ohio's at 2%. Ohio's sales volume increase was also up by over 18.9% from September 2012. The US market saw a 11.7% increase in sales price from the year before, and is showing a sales volume increase of 10.7%. Ohio and Northeast Ohio's price increases have stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in the area compared with the nation. There is concern that home prices are rising faster than income 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 decreased slightly, hovering around 4.3%.
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.
Sales comparing September 2012 to September 2013 still show increasing sales figures. Among the 15 counties in Northeast Ohio, single family home sales are up 15.2% and 3.1% for condominium sales.
By comparison, Northeast Ohio is showing a 3% price increase from last year, with the state of Ohio's at 2%. Ohio's sales volume increase was also up by over 18.9% from September 2012. The US market saw a 11.7% increase in sales price from the year before, and is showing a sales volume increase of 10.7%. Ohio and Northeast Ohio's price increases have stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in the area compared with the nation. There is concern that home prices are rising faster than income 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 decreased slightly, hovering around 4.3%.
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.
Thursday, October 17, 2013
New Home Construction - Reasons To Have Realtor Representation
Buying a new home is exciting, and home construction is on the rise. You get to build your home the way you want it to be. But like any home purchase, new construction is an expensive transaction with many financial implications.
Here's why it’s a good idea to obtain representation from a Realtor when considering new construction:
Sales Reps Work For The Builder. Builders usually have their own agents or representatives on site to discuss the home construction process, and help with a potential purchase. They can explain how the builder compares to competitors, differences between models and floor plans, go over your financing options, upgrades and specials, etc. But it’s important to know that builder reps represent the builder.
Fiduciary Duties. When you use Realtor representation, their responsibility is to you. You have a local expert who is looking out for your best interests, who’s contractually obligated to protect you. A buyer's agent can help you navigate the contract and help you understand the specific clauses, riders and upgrade, making sure you know what you need to before you sign on the dotted line.
Negotiating. Finding the right model and choosing your upgrades is fun, and you should truly try to enjoy the experience. The contracts and negotiating terms and options is the not-so-fun part, and can be quite daunting. Most buyers don't know they can even negotiate with a builder. Your agent can also present other financing options or possibly work with the builder’s lender directly to get you a better rate for your mortgage.
Navigating You to Closing. Signing a contract with a builder is step one in the process. You must also line up financing, work with title companies, attend numerous inspections and make sure completion of the home meets the deadline. Your Realtor can manage that process to ensure you’re not missing anything at each stage of your new home's construction.
Thursday, October 10, 2013
Home Value Accuracy - Agent Versus Software Estimates
If you're considering buying or selling a home, I'm sure you've probably
looked at various real estate sites to see how much homes are valued for. As a real estate professional, I get clients that ask
me about these home value estimates all the time. Some of them have
almost decided not to buy or sell a home, because they trusted these
estimated to be accurate, and they got the impression they could not
meet their selling or purchasing goals.
So, I decided to due my homework and see just how accurate these estimates are. I went to the most well known site for home value estimates...Zillow. Their "Zestimates," as they're called, provide home value estimates of any home, whether they're for sale or not. Zillow states that this is not to be construed as an appraisal, but an opinion of value.
The issue is, these values are derived from county tax values, last sales price, surrounding homes in different communities and school districts. It may also use homes that while close in proximity, are of varying quality, size, condition, age, and/or distressed (foreclosure or short sale). The homes could be in a better or worse location as well (train tracks, near highway, on a main road, etc).
I attached a screen shot from Zillow's website that discloses the accuracy of their "Zestimates," which can be viewed at the following link as well. ZESTIMATE ACCURACY
Being a Realtor in the Cleveland and Northeast Ohio area, I'll ask you to draw your attention to the Cleveland OH statistics. As you can see, the "Zestimates" are only 35.9% accurate within 5% of the true value, 63.7% within 10% of true value and 83.7% accurate within 20% of true value. If an agent had accuracy numbers like these, he/she wouldn't be a very successful Realtor.
To put this in perspective, if a seller owned a $250,000 home, the differences at these 5-20% levels of accuracy could range from $12,500-$50,000! If the seller's home is one of the 16.3% that weren't even accurate within 20%, this number could be even higher.
The point is, as I explain to all of my clients, using the internet to obtain real estate knowledge can be a great thing, but can also be misleading or incorrect. Knowing the source of your information is very important, and it's the reason I wrote this article. Specific to this topic, nothing replaces the valuation of a local real estate agent. And when choosing a Realtor, be sure to interview more than one to make sure you're choosing a knowledgeable agent that will successfully guide you through your transaction.
So, I decided to due my homework and see just how accurate these estimates are. I went to the most well known site for home value estimates...Zillow. Their "Zestimates," as they're called, provide home value estimates of any home, whether they're for sale or not. Zillow states that this is not to be construed as an appraisal, but an opinion of value.
The issue is, these values are derived from county tax values, last sales price, surrounding homes in different communities and school districts. It may also use homes that while close in proximity, are of varying quality, size, condition, age, and/or distressed (foreclosure or short sale). The homes could be in a better or worse location as well (train tracks, near highway, on a main road, etc).
I attached a screen shot from Zillow's website that discloses the accuracy of their "Zestimates," which can be viewed at the following link as well. ZESTIMATE ACCURACY
Being a Realtor in the Cleveland and Northeast Ohio area, I'll ask you to draw your attention to the Cleveland OH statistics. As you can see, the "Zestimates" are only 35.9% accurate within 5% of the true value, 63.7% within 10% of true value and 83.7% accurate within 20% of true value. If an agent had accuracy numbers like these, he/she wouldn't be a very successful Realtor.
To put this in perspective, if a seller owned a $250,000 home, the differences at these 5-20% levels of accuracy could range from $12,500-$50,000! If the seller's home is one of the 16.3% that weren't even accurate within 20%, this number could be even higher.
The point is, as I explain to all of my clients, using the internet to obtain real estate knowledge can be a great thing, but can also be misleading or incorrect. Knowing the source of your information is very important, and it's the reason I wrote this article. Specific to this topic, nothing replaces the valuation of a local real estate agent. And when choosing a Realtor, be sure to interview more than one to make sure you're choosing a knowledgeable agent that will successfully guide you through your transaction.
Tuesday, October 1, 2013
Ohio Career Expo at the Cleveland Public Auditorium
Screencap taken from https://www.facebook.com/ohiocareerexpo
The Expo is an excellent opportunity for job seekers to apply at several different companies. For those looking to hire, it’s a good way to meet with hundreds of qualified candidates and possibly make several hires in just a few hours.
Registration is free of charge, but required, as tickets are going fast. Over 100 top Northern Ohio companies looking to hire will be in attendance, with full-time and part-time jobs available in industries including (but not limited to) advertising, aeronautics, agriculture and fishing, automotive, construction, education, engineering, food services, healthcare, hospitality, insurance, manufacturing, marketing, real estate, retail, sales, security, technology, telecommunications, and transportation.
According to the event’s official Facebook page, there are over 1,200 job openings in the Cleveland area healthcare sector alone. So don’t miss out on this fantastic opportunity, register now. For more information, please visit https://www.facebook.com/ohiocareerexpo.
Tuesday, September 24, 2013
Cleveland, Northeast OH Area Real Estate Market August 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 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.
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.
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.
Friday, August 30, 2013
2013 Cleveland Labor Day Oktoberfest This Weekend
Screencap taken from http://clevelandoktoberfest.com/
A diverse and unique experience, the Cleveland Labor Day Oktoberfest will have something to offer everyone. For art lovers, there will be a dedicated Art Market, sidewalk chalk art and a demonstration by sand sculptor Carl Jara. A 5k race, corn hole boards and other sporty activities will cater to more athletic visitors. Shopaholics can visit the Bavarian Bazaar while car enthusiasts can check out the VW Show & Campout as well as the juried Car Show. Of course, the festival also has fun activities lined up for the kids, including the Frisch Marionette Show, inflatables, toy trains, a gingerbread house building competition, sandboxes, a stunning fireworks display and more.
Admission costs $10 with a $2 discount if you purchase tickets online. Children under 12 get in free. Hours are from 5pm to midnight on Friday, noon to midnight on Saturday and Sunday and from noon to 9pm on Monday. The Cuyahoga County Fairgrounds are located at 164 Eastland Road in Berea. For more information, please visit clevelandoktoberfest.com.
Friday, August 23, 2013
Cleveland, Northeast OH Area Real Estate Market July 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 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 July 2012 to July 2013 show increasing sales figures by double digits, like they did in May and June. Among the 15 counties in Northeast Ohio, single family home sales are up 22.6% and 30.2% for condominium sales. From June to July 2013, sales rose by 9%.
By comparison, Northeast Ohio is showing a 6.3% price increase from last year, with the state of Ohio's at 7.2%. Ohio's sales volume increase was also up by over 25.8% from July 2012. The US market saw a 13.7% increase in sales price from the year before, and is showing a sales volume increase of only 17.2%. Northeast Ohio's price increases have improved to a lesser degree the past couple months, while Ohio and the US have been fairly stable.
"Although housing affordability conditions will become less attractive, jobs are being added to the economy," Lawrence Yun, chief economist for the National Association of Realtors, said in a written statement. "And mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall."
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.
Sales comparing July 2012 to July 2013 show increasing sales figures by double digits, like they did in May and June. Among the 15 counties in Northeast Ohio, single family home sales are up 22.6% and 30.2% for condominium sales. From June to July 2013, sales rose by 9%.
By comparison, Northeast Ohio is showing a 6.3% price increase from last year, with the state of Ohio's at 7.2%. Ohio's sales volume increase was also up by over 25.8% from July 2012. The US market saw a 13.7% increase in sales price from the year before, and is showing a sales volume increase of only 17.2%. Northeast Ohio's price increases have improved to a lesser degree the past couple months, while Ohio and the US have been fairly stable.
"Although housing affordability conditions will become less attractive, jobs are being added to the economy," Lawrence Yun, chief economist for the National Association of Realtors, said in a written statement. "And mortgage underwriting standards should normalize over time from current stringent conditions as default rates fall."
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.
Wednesday, August 7, 2013
Consider Home Staging to Sell Your Home
So, you're selling your home, or at least considering it. But how do
you compete with the rest of the market around you? Pricing? Condition?
Listing with an agent that knows how to market your home properly?
YES!
For the purposes of this post, we're going to concentrate on the condition of the home...
Why to Consider Staging
As a seller, you want to put yourself in the best position to get buyers' attention and have them perceive a value for your home, in comparison to other homes on the market in the area. A buyer needs to see themselves living in your home. Whether you're currently living in your home or have left it vacant, home staging may be what you need to set your home apart from the rest.
The purpose to home staging is to give your home an updated look, and to give a buyer the ability to see what the home would look like in it's best possible condition. It helps highlight the home's best features, with the goal of appealing to a broad range of buyers, selling faster and for a higher dollar amount. According to statistics from the Accredited Staging Professional website, the success rate (see below) can be quite substantial.
Return on Investment
Costs can vary, depending on the size of the home and how much staging work is done. It can be a few hundred dollars to several thousand, but if it results in a quick sale for top dollar, it may prove to be well worth the investment. According to staging professionals, it can provide a 3-7% higher sales price.
The following is a summary of the results of HomeGain's national survey, based on the ten areas of home improvement identified by real estate agents in HomeGain's survey. They are listed from the highest to lowest returns on investment:
Bottom Line
As I always advise my sellers, if there is something that can place your home above all the rest, it should always be considered. In regards to home staging, if the results and the return on investment can be achieved, it may be a way for a seller to "beat the market" in a time when the market heavily favors the buyer.
For the purposes of this post, we're going to concentrate on the condition of the home...
Why to Consider Staging
As a seller, you want to put yourself in the best position to get buyers' attention and have them perceive a value for your home, in comparison to other homes on the market in the area. A buyer needs to see themselves living in your home. Whether you're currently living in your home or have left it vacant, home staging may be what you need to set your home apart from the rest.
The purpose to home staging is to give your home an updated look, and to give a buyer the ability to see what the home would look like in it's best possible condition. It helps highlight the home's best features, with the goal of appealing to a broad range of buyers, selling faster and for a higher dollar amount. According to statistics from the Accredited Staging Professional website, the success rate (see below) can be quite substantial.
Return on Investment
Costs can vary, depending on the size of the home and how much staging work is done. It can be a few hundred dollars to several thousand, but if it results in a quick sale for top dollar, it may prove to be well worth the investment. According to staging professionals, it can provide a 3-7% higher sales price.
The following is a summary of the results of HomeGain's national survey, based on the ten areas of home improvement identified by real estate agents in HomeGain's survey. They are listed from the highest to lowest returns on investment:
Bottom Line
As I always advise my sellers, if there is something that can place your home above all the rest, it should always be considered. In regards to home staging, if the results and the return on investment can be achieved, it may be a way for a seller to "beat the market" in a time when the market heavily favors the buyer.
Wednesday, July 24, 2013
Cleveland, Northeast OH Area Real Estate Market June 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 continue to surpass last year's sales
figures, as we have now hit the mid-point of the year. 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 June 2012 to June 2013 show increasing sales figures by double digits, like they did in May. Among the 15 counties in Northeast Ohio, single family home sales are up 13.3% and 11.2% for condominium sales. From May to June 2013, sales rose by 4%.
By comparison, Northeast Ohio is showing a 8.4% price increase from last year, with the state of Ohio's at 9.3%. Ohio's sales volume increase was also up by over 15% from June 2012. The US market saw a 13.5% increase in sales price from the year before, and is showing a sales volume increase of only 15.2%. Last month, Northeast Ohio outpaced Ohio and the US in both volume and price increases.
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% or so. Rates were nearly a full percent lower in November of last year.
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.
Sales comparing June 2012 to June 2013 show increasing sales figures by double digits, like they did in May. Among the 15 counties in Northeast Ohio, single family home sales are up 13.3% and 11.2% for condominium sales. From May to June 2013, sales rose by 4%.
By comparison, Northeast Ohio is showing a 8.4% price increase from last year, with the state of Ohio's at 9.3%. Ohio's sales volume increase was also up by over 15% from June 2012. The US market saw a 13.5% increase in sales price from the year before, and is showing a sales volume increase of only 15.2%. Last month, Northeast Ohio outpaced Ohio and the US in both volume and price increases.
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% or so. Rates were nearly a full percent lower in November of last year.
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.
Thursday, July 18, 2013
Luau on the Lake on July 20, Wendy Park in Cleveland OH
Photo taken from http://sc4k.org/
SC4K is a non-profit organization that provides new clothes and shoes to thousands of children in Greater Cleveland at no charge throughout the year. With a network of 35 distribution partners, they aim to positively impact the lives of less fortunate area children by giving them the boosts in confidence and self-esteem that having new clothes and shoes naturally brings.
Tickets for Luau on the Lake range from $40 to $50. The event starts at 3:30pm for VIP ticket holders and 4pm for General Admission. Food will be served from 5:30 to 7:30pm. For more information on this event, please visit sc4k.org.
Tuesday, July 9, 2013
Cleveland, Northeast OH Area Real Estate Market May 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 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 is increasing new construction demand, as well.
Sales comparing May 2012 to May 2013 show increasing sales figures by double digits. Among the 15 counties in Northeast Ohio, single family home sales are up 12.6% and condo sales are up a 25.8%. From April to May 2013, sales rose by double digits also.
By comparison, Northeast Ohio is showing a 13.4% price increase from last year, outpacing the state of Ohio's 9.3%. The US market saw a 15.4% increase in sales price from the year before, and is showing a sales increase of only 4.2%.
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 nearly 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 several months, and have been hovering around 4%.
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.
Sales comparing May 2012 to May 2013 show increasing sales figures by double digits. Among the 15 counties in Northeast Ohio, single family home sales are up 12.6% and condo sales are up a 25.8%. From April to May 2013, sales rose by double digits also.
By comparison, Northeast Ohio is showing a 13.4% price increase from last year, outpacing the state of Ohio's 9.3%. The US market saw a 15.4% increase in sales price from the year before, and is showing a sales increase of only 4.2%.
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 nearly 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 several months, and have been hovering around 4%.
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.
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