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 May to June. 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 volume is increasing, and sales prices have shown a slowing increase. A higher inventory in homes for sale would help boost sales activity.
Sales
from
May to June show an increase, however, sales from June 2013
to June 2014 show a decline.
Among the 15 counties in Northeast Ohio, we saw a healthy 11.1% increase
for
single family homes and a 2.5% increase in sales volume from last
month.
Single family
home sales are up 1.3% from June
of last year. Halfway through the year, local home sales are lagging
last year's levels by 2.5%, but average sale prices are up 1.3% from
June 2013 to June 2014.
Ohio's
sales volume showed an increase of 7.5% from May to June. Ohio's sales
prices were relatively flat, with a 1.2% improvement from last June with an
annual increase total of 1.2%. National figures have
shown a 2.3% decrease in sales volume and 2.6% price 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 when compared with the nation.
"Inventories
are at their highest level in over a year, and price
gains have slowed to much more welcoming levels in many parts of the
country," Lawrence Yun, chief economist for the national Realtors, said
in a written statement. "This bodes well for rising home sales in the
upcoming months, as consumers are provided with more choices." He added,
supply concerns won't dissipate until homebuilding rebounds.
The
key
point here is that the market is starting to stabilize and shifting to a
balanced/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% in 2015.
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.
Showing posts with label Sales Prices. Show all posts
Showing posts with label Sales Prices. Show all posts
Friday, July 25, 2014
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.
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.
Saturday, August 4, 2012
U.S. Real Estate Market Improved For Buyers And Sellers
According to an article in the Wall Street Journal, S&P's David Blitzer indicated that nearly seven years after the housing bubble burst, most indexes of house
prices are bending up. "We finally saw some rising home prices." Nationally, the number of existing homes for sale has
fallen close to the normal level of six months' worth despite all the
foreclosed homes.
This national trend is something I'm seeing locally in many of the Northeast Ohio suburbs, where as the inner-ring suburbs and Cleveland areas are still seeing a considerable supply of homes versus buyer demand. When we see lower supply and higher demand for homes (due to historically low interest rates), we will begin to see an increase in sales prices.
We're also seeing improvements in new home construction on a national and local level, but it still has a long way to go from what construction was like in 2002, which we may never see again.
As the economy and employment rate improves, so will the real estate market. As a Seller, the great news is that there are less Homes For Sale compared to last year, and there is higher buyer demand. Again, in that scenario, that means sales prices will remain where they are or show modest increases. As a Buyer, the great news is that interest rates are at or near record lows and the lenders have relaxed their approval criteria a bit over the past year or so.
I don't know what the future will hold in regards to the economy, real estate market or interests rates. What I do know, is that this local market in Northeast Ohio has shown significant improvement, and it's a great time to consider making a move.
This national trend is something I'm seeing locally in many of the Northeast Ohio suburbs, where as the inner-ring suburbs and Cleveland areas are still seeing a considerable supply of homes versus buyer demand. When we see lower supply and higher demand for homes (due to historically low interest rates), we will begin to see an increase in sales prices.
We're also seeing improvements in new home construction on a national and local level, but it still has a long way to go from what construction was like in 2002, which we may never see again.
As the economy and employment rate improves, so will the real estate market. As a Seller, the great news is that there are less Homes For Sale compared to last year, and there is higher buyer demand. Again, in that scenario, that means sales prices will remain where they are or show modest increases. As a Buyer, the great news is that interest rates are at or near record lows and the lenders have relaxed their approval criteria a bit over the past year or so.
I don't know what the future will hold in regards to the economy, real estate market or interests rates. What I do know, is that this local market in Northeast Ohio has shown significant improvement, and it's a great time to consider making a move.
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