New Numbers for a New Year!

Hello all!  It’s been crazy- busy at our home, and I’m sure at yours too.  I hate to be a cliché and write about looking back, and looking forward, but hey, it’s January of a new year. What can I say?

Ok. I promise.  I’ll keep my philosophical ranting, and resolution making and breaking discussions, off this page, and stick to some good old fashioned MLS market data to keep you up to date.

The following data is for single family homes only, Butler, Warren, Hamilton, and Clermont County. 

This data is compiled from The Greater Cincinnati Multiple Listing Service, as of about 10:30 a.m. or so today.
Once again, a “Distressed Property” is a bank owned or government owned foreclosed on property, or a property still owned by a consumer, but requiring bank approval for a “short sale”.

Obviously, the numbers speak to the issues we have all experienced in the local real estate market.  I want to point out that, while indeed, there was an explosion of distressed properties for sale over the last few years, the MLS wasn’t as strict or accurate “pre-market correction” as it is currently.  In other words, we didn’t keep track as well of short sales.  Many real estate agents didn’t even know what a short sale was until the last couple of years.  I remember a conversation in early 2007 with 25 year veteran about my fear that we would be seeing more and more short sales in the coming years.  Her response…”what’s a short sale?”  So there you have it.

Here are some current numbers:

2010 To Date as of 10:30 a.m. January 4, 2010

One thing that jumped out at me here is that while the average list price in the 4 main counties of Greater Cincinnati is $240,144, the average list price of the home under contract, waiting to close, is significantly lower: $157,854.  That tells me that the lower priced “bargains” continue to fuel this market.  It will be interesting, of course, to see what this next year brings.  The good news is that if this is your snapshot in time to be entering the real estate market as a buyer, there is still plenty of good reason to do so: low interest rates, tax credits, good inventory, and you still have the upper hand in most markets and price points.

Sellers:  don’t be discouraged. If this is your snapshot in time to put your home on the market,  just be sure to hire the team of agents with a proven track record, good marketing ideas, and a head for numbers ( hint, hint).  Priced well to be the “next best value”, your home will sell.    The RealCincy Group is here to offer advice and keep you up to date on the competition. In Ohio & Kentucky, we can help.  With our OUTSTANDING marketing and trend watching, we’ll get your home sold

More Cincinnati real estate information can be found at RealCincy.com

Stalled Luxury Home Sales

A few months ago I gave you information about the upscale housing market in the Greater Cincinnati area.  Those areas included Butler, Warren, Hamilton and Clermont counties.  We discussed the Jumbo Mortgage Market, and how tight control on the interest rates for the luxury home market may be slowing the housing market, at the “grass roots” level.

I just put together an update with closed sales stats through November 15, 2009.  I thought you might like an update.

Single Family Sales: Butler, Warren, Hamilton and Clermont Counties.
Source: Greater Cincinnati Multiple Listing Service

It’s possible that once the current 23 pending sales do close, that we the “Over $700k+” sales will not come to the anticipated 138 total.  We will just have to see if those homes, in this buyer driven market, that are priced close to the $700,000 list price, do indeed sell over $700,000

More Cincinnati real estate information can be found at RealCincy.com

Our "leaf lawn"

Did you see that gorgeous full moon last night?  It was a beautiful sight.  I love the chilly nights and cool days.  The leaves are everywhere! I have to confess:  We don’t do a great job of raking at our house. Never have and probably never will. We just like the look of the scattered leaves. I am glad to see that several of our neighbors do too.  We aren’t the only house on the block with a “leaf lawn”.

Are you ready to take the time to look at year to date numbers? Let’s see how this year, through October 31, 2009, compares with the last few years, back to 2005.  These stats are, of course, from The Greater Cincinnati Multiple Listing Service. January 1 – October 31, single family closed sales, no auctions. The stats include the Hamilton, Clermont, Butler and Warren Counties.

                                                             January 1 – October 31 

See any trends here?  So far this year, closed single family dwelling sales are 394 units down from last year, but a whopping 5,476 from the 2005 high.  The list to sale ratio continued dropped with a “thud”, as buyers drove hard bargains. Combine the buyer’s “upper hand” approach to negotiations with sellers who are still over-pricing, and the L/S ratio widen.   The back story on these numbers you don’t see, are the number of homes that had to have 2 or 3 price reductions before a buyer wrote an offer that resulted in a closed sale.

If you want more detailed information about your specific neighborhood or price range, let me know! The RealCincy Group would be glad to prepare your personal report.

More Cincinnati real estate information can be found at RealCincy.com

Currently, there are 3 loan categories. Loans under $417,000 are considered conforming. Loans $417,000 – $729,500 are in the conforming jumbo category. Loans over $729,500 are considered super jumbo.  Jumbo loans remain quite costly compared to the interest rates for conforming loans.  Jumbo buyers with outstanding credit and plenty of available cash for a down payment are being viewed as higher risk borrowers than those seeking a loan with lower credit scores and minimal down payment funds.

Nationally, sales above $750k are down. A month’s supply of luxury home inventory, a.k.a, the absorption rate, continues to rise. This trend is occurring both nationwide, and in the Greater Cincinnati area. Check out these numbers, by year, sales over $700,000. All stats, of course, from The Greater Cincinnati Multiple Listing Service:
               2000 – 118          2005 – 334  ** Peak of the housing bubble**
               2001 – 141          2006 – 327
               2002 – 200          2007 – 288
               2003 – 211          2008 – 209
               2004 – 283          2009 – Nearly ½ way through the year, “drum roll please”!    29 !!

Overall, precious few of us will ever need to obtain a jumbo or super jumbo mortgage, so you might wonder if this affects us. The answer is, of course, absolutely.  As these jumbo mortgages become increasingly difficult to obtain, many luxury buyers are forced to liquidate their assets to make the home purchase. The rest of us call that “paying cash”. Even though paying cash for a $1,000,000 plus home may be “do-able”, many are reluctant to do so when they should be able to find long term, low interest debt like the rest of us, and keep the cash right where they have it now. Presumably, making more cash.  The reluctance is obvious, as the shear volume of luxury sales has plummeted.

Jumbo Loans are Difficult to Obtain

This current scenario is doing its part to slow our economic growth, and certainly is inhibiting the “chained cougar” known as the Housing Market. The Housing Market is ready, willing, but not quite able to lead us out of our current economic situation. Unleash the “chained cougar”, and history tells us the Housing Market will start running toward recovery, and most of the rest of the economic sectors follow.  The ability to not just purchase, but to re-finance the high rate jumbos into lower rate loans would certainly help to give a kick in the seat of the pants of this sluggish economy.  If these jumbo borrowers were able to reasonably re-fi and save an estimated $6000 – $15,000 yearly on interest payments, well, wouldn’t they?  Money then free to be spent on vacations, education, clothing, and re-investment, potentially jump-starting and feeding other areas of the market.

The National Association of Realtors is doing there part to stir the pot on this issue.  The NAR has proposed that Congress and the White House take a close look at making permanent some rules that have been temporarily put in place recently to loosen the jumbo market. We’ll see how it goes. In the meantime, it’s back to window peeking.

More Cincinnati real estate information can be found at RealCincy.com

There have been several key changes to the First Time Homebuyer Tax Credit; here are some of the highlights:

• The amount eligible for the tax credit is lesser of 10% of the cost of the home or $8,000. This is an increase from the July 2008 provision of $7,500

• Any single family residence will be eligible, as long as the homebuyer will be using it as his or her primary residence

• The tax credit reduces, or eliminates, the income tax liability for the year of the purchase. Any unused amount of tax credit is refunded to the homebuyer

• Be aware that there are income limits. The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 annually. For those filing a joint return, the adjusted annual gross income can be no more than $150,000. This phases out above those caps at $95,000 and $170,000

• First time homebuyer (and homebuyer’s spouse) may not have owned a primary residence in the 3 years prior to purchasing the home in 2009

Here are some significant revisions to note:

• No repayment of the tax credit is required for home purchases on or after January 1, 2009 and before December 1, 2009.  This is a major difference from the tax credit offered to first time homebuyers in 2008

• If the home is sold within 3 years of the purchase, the entire amount of credit is recaptured on sale. This will apply only to homes purchased in 2009

• Home buyers can use state and local bond funding and still take advantage of tax credit

• All revisions are effective as of January 1, 2009

As always, it is essential to discuss your potential or impending home purchase with your tax advisor.

There are many fantastic reasons to purchase your first home – now you can add another one to the list: a sensible tax credit!  So give us a call or shoot us an email, and we will refer to you a mortgage consultant that will help you to assess your purchase power. Then, let’s get out there and boost the economy!

More Cincinnati real estate information can be found at RealCincy.com

Because of Teresa’s expertise, she has been a featured contributor to WCPO Channel 9 News, The Cincinnati Enquirer, and Home Improvement Magazine.

Teresa and Stage a Star has developed for you a complete and total staging package, always keeping in mind the individual homeowners’ needs and budget. You will receive a 50+ page guide, jammed with tips, checklists, and a “Seller Survival” guide. I’ve seen it! You’re going to love it! 

You just never know when a buyer will decide she is ready to see your home. You may get a 1 or 2 day notice.  Sometimes you get about 15 minutes notice. Rule #1 – Never, Never turn down a showing. Talking with Teresa the other day, she shared one of the tips she gives to sellers.  She suggests homeowners get a basket for the bathroom. Every day, before leaving the house, toss all the hair brushes, mouse, styling products, toothpaste, floss, tweezers, all the items we need to make ourselves pleasant for the public, into the basket, and stuff it under the sink.  Sounds simple, but when you want to sell, need to sell, every little tip that makes life easier for you is a blessing. And, you won’t panic when you get the call from the appointment center letting you know someone just drove by your home and would like to see it….in 15 minutes.

Her consultation package includes a CD Rom with success stories. There are 1 or 2 visit packages to choose from.  She will stage using your furnishings, concentrating of the areas of the home most important to buyers: kitchen, living room, dining room, master bedroom and baths.   Vacant home staging is offered too. Staging a vacant home is critical to getting a home sold! I know from touring with buyers every blemish just jumps out and gives the eagle-eyed buyer too many opportunities to dismiss the home over cosmetic and very minor flaws. Every cobweb stands out, every carpet stain, no matter how small, is magnified.  If you’ve already moved out, I can not overstate the importance of vacant home staging.  Prices will vary of course, depending on what the two of you agree to do.

Now your home is staged, and we need to show it off. I know for a fact many homebuyers will immediately dismiss a home when searching the net for homes to visit, if the online photos are not available from Day one. Teresa has wisely partnered with Jenny Walters Photography. You can view Jenny’s work on the Stage a Star site. You can’t help but be impressed by Jenny’s eye for even the smallest detail. Your home will leap off the computer screen and onto the buyer’s “Must See List”.

Be sure to visit the Stage a Star site and enjoy the before and after gallery. It’s fun to see the transformations. Teresa, Jenny and the rest of The RealCincy Group  look forward to helping you sell.

Give us a Call.      36 Days. Wow!

More Cincinnati real estate information can be found at RealCincy.com

Click this link here for a detailed, and I do mean detailed, monthly statistical charts. You’ll know more about the Greater Cincinnati real estate market trends than ever. This is really good information. Enjoy!

Click here to see MLS monthly and year end updates.  I immediately noticed a lot fewer licensed agents at the end of the year, than at the beginning of the year. Yep…it’s been difficult this last year. We are thankful for each and every opportunity that we’ve had in 2008 to assist our customers and clients with their real estate needs. We always appreciate the continued referrals from friends and past customers. Thank you.

The real estate market for residential sales in Cincinnati continued to decline, reaching into the double-digit drop from the same period last year.

In 2007, there were 22,265 home sales in Greater Cincinnati.
In 2008, there were 18,752 home sales in Greater Cincinnati. 

A 15.8% drop in volume.  Gross volume took a hit too. 21.4%. $3.9 billion in 2007 to $3 billion in 2008. We saw a drop in average sales price of 6.7 %, from $173,986 in 2007 to $162,340 in 2008.
We are currently seeing about a 10 month absorption rate. In other words, it could take about 10 months for any single home to sell, or be “absorbed” into the market. Although most sellers get a bit anxious after 90 days, a balanced market is about 6 months.

Northern Kentucky market statistics are interesting too. Northern Kentucky home sales dropped 14%, 5,126 in 2008 from 5965 in 2007.  Total volume dropped 13/3%, to $823.3 million last year from $949.7 million the year before.  The average sales price did rise 1% to $160,611 from $159,210.

So, what does 2009 bring? Dunno. What I can say is this: Interest rates are silly low. If you are sitting on the fence, trying to “time the market” and decide if it’s dropped low enough for you to get in on  a purchase, stop it.  Experts and armchair prognosticators alike disagree on “bottom”. Besides, by the time it’s identified, you’ve missed it. Enjoy the choice of good homes available, interest rates we didn’t think we would ever see again, and go buy a HOME!

If you want to sell….need to sell…..do not be discouraged. Well marketed, priced right, staged, “inspected and corrected”, your home will sell!! Look at our Guaranteed Sale Program. Maybe that will work for you. Check out our “Serious Sellers” Satisfaction Package. Is that a good fit? We have other options too. Give me a call. We’ll see what will work best for you and work on bringing up those 2009 numbers together.

More Cincinnati real estate information can be found at RealCincy.com

The stats are from the Greater Cincinnati Multiple Listing Service, for Butler, Warren, Hamilton and Clermont counties.  Ready ?? Here goes!!

In the last 6 months, 7/04/08 – 12/31/08

Single Family Sales – 7084
Average List Price – $175,559
Average Sales Price – $166,517

Same 6 month time frame, one year ago, 7/04/07 – 12/31/07

Single Family Sales – 8299
Average List Price – $192,137
Average Sales Price $184,137         

              1,215 fewer sales with a $17,620 drop in average sales price. Wow!

It’s the last day of the month, and hopefully around town, a few closings are taking place at real estate and title company offices.  Those closings, when entered into the MLS on Monday after the New Year’s Holiday weekend will bring the final numbers up a bit for year end. The truth is, probably not enough to really make more than a “blip”, and certainly not enough to change the trend. So, read on if you’re feeling brave!

The following stats are all for Butler, Warren, Hamilton and Clermont Counties Combined. Single Family & Condo Sales Combined. Of course, all information is from The Greater Cincinnati Multiple Listing Service

1/01/08 – 12/31/08     Sales – 16,805 
Average List Price – $177,011       Average Sale Price – $168,355
4421 of the sales are noted as “Lender Owned, Government Owned, or Seller’s Lender Approval Required”

01/01/07 – 12/31/07     Sales – 19,967
Average List Price – $187,832       Average Sale Price – $180,394
3786 of the sales are noted as “Lender Owned, Government Owned, or Seller’s Lender Approval Required”

01/01/06 – 12/31/06     Sales – 22,706
Average List Price – $189,780       Average Sale Price – $184,071
3118 of the sales are noted as “Lender Owned, Government Owned, or Seller’s Lender Approval Required”

01/01/05 – 12/31/05     Sales – 24,203
Average List Price – $190,242       Average Sale Price – $185,164
339 of the sales are noted as “Lender Owned, Government Owned, or Seller’s Lender Approval Required”  

**Disclosure of Memory Failure Alert Here**  The Multiple Listing Service didn’t always have a search function for “short sale/lender approval”. That was added at some point when short sales became more frequent, rather than the “exception”.  I honestly can’t remember when it was added, but you can see the obvious huge jump in numbers 2006 from 2005, when as I said before, we could see that something was on the horizon, about to cause a major shift in the market.

01/01/04 – 12/31/04 Sales – 23,407
Average List Price – $182,607       Average Sale Price – $177,786
182 of the sales are noted as “Lender Owned or Government Owned”

What’s it all mean? It means that if you want to sell your home, you need to “get serious”. Check out our “Serious Sellers” Satisfaction Package!    We CAN Get Results!

More Cincinnati real estate information can be found at RealCincy.com

Let’s keep an eye on the market together.  I will update you monthly with stats from the Greater Cincinnati Multiple Listing Service, so that you can see the trends as I do.

Let’s look at the Butler, Warren, Clermont and Hamilton County area, sold properties.  Single family and Condo sales activity.  The last 6 months. Then, let’s compare to the same 6 month time period, 2007.

Per the Greater Cincinnati Multiple Listing Service:

Single Family Sold – Last 6 Months: 7812 total units
Average List Price: $184,822
Average Sales Price: $175,741

Single Family Sold – Same Time Period, 2007: 9114 total units
Average List Price: $197,883
Average Sales Price: $189,999

1302 Fewer Sales in 2008 -  $14,258 drop in average sales prices

Attached Homes/Condos/Town homes Sold – Last 6 Months: 950 total units
Average List Price: $160,672
Average Sales Price:  $154,558

Attached Homes/Condos/Town homes Sold –Same Time Period, 2007: 1277 total units
Average List Price: $148,534
Average Sales Price: $144,087

327 Fewer Sales in 2008 – $10,471 rise in average sales prices. Why? In the current 6 month time period, there were 3 condo units that closed, with a sales price over $1,000,000, bringing up the average sales price figure

More Cincinnati real estate information can be found at RealCincy.com

If you are considering listing your home, you have to see this!  Do you need to more fully understand the power of the RE/MAX name? Are words just fine for you, but visual proof is even more important? Do you need to see how working closely with your favorite RE/MAX Unlimited agent gives you exposure to not just the buyers across town, but across the country?  Fair Enough……Then read on!!

What you are about to see, in real time, are all of the consumers logged into remax.com, in the continental US, 48 states.  Click the following link to see what I’m talking about:  RE/MAX Map

All of the white lights represent people currently logged in, looking at homes on www.remax.com. You will see yellow dots appear.  Those yellow dots represent a consumer that has just asked for more information about a home! Wow!

A listing agent is, right now, in real time, being sent an email that is letting him know, that someone is interested in a particular home. If the home is  not listed by a RE/MAX agent, then a qualified local RE/MAX  agent is being notified that there is a potential customer that would like to know more about a home on the market. And yes! We can help!

You also need to know that the RealCincy Group with RE/MAX Unlimited has developed an outstanding system to make sure that your home listed with us is receiving more than it’s share of this attention! We have received email inquiries from all 50 states, and from outside of the US, including Japan, England and Germany! 

I think this is a pretty powerful testimony to the power of the RE/MAX name. By the way, in case there was any doubt, your favorite RE/MAX Unlimited agent is a member of the RealCincy Group. Give us a call today. We’ll do our best to make sure we light up the Cincinnati and N. Kentucky portion of the map with YOUR home!

More Cincinnati real estate information can be found at RealCincy.com