January 2012 Cincinnati Market Update

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Real estate trends of the past are the most telling prediction of what is to come in the future – leaving aside catastrophic events such as the 2007 mortgage subprime crisis or the robo-signing scandal that broke out in 2011.  But for the most part as long as things are quiet we can tell where the market seems to be heading.

Sales and Inventory – Up From Previous Year

Year over year sales numbers were reported almost as much as twenty five percent up from the previous year.  This is great news for us! Similarly, based on MLS statistics our inventory is also up about 25% from the same period of time as last year.

Housing Prices Still Declining

Though our sales were up and inventory was also up, housing prices dipped about 10% year over year.  Even though buyers are enjoying this aspect of the property market, declining home prices continues to create a challenging situation for sellers.

Interest Rates Still At or Near All-Time Lows

Nationally, as well as locally, we have seen all-time low interest rates that have continued to provide welcome relief to many homeowners looking to have more affordable monthly payments through refinancing.  This has also been an ideal time for first-time homebuyers to be able to get into a new home that they may not have been able to do in any other economy.

Lenders Control a Fourth of the Market

Focusing on active inventory, we are reporting about 24% control by lenders.  More than one third (36%) of properties that are sold fall under the category or either short sales or REO properties.

Pending Sales Figures Up From Previous Year

Again, we are seeing an upward trend with pending sales numbers comparing this year’s sales with the previous year’s figures.  A nearly 8% increase in pending sales points to a long-awaited positive upward swing in the future.

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Looking ahead it seems that 2012 will be a strong year for sales, we will continue to see existing inventory move and buyers will likely continue seizing opportunities available to them.  Government programs will remain in action and we will likely see fewer new foreclosures with more loan modification situations taking place.  Prices will continue to decline slightly but both prices and interest rates will not change during this year.

If you have any questions or would like to learn more about how our market is performing – please give us a call and we’d be happy to share the latest numbers with you!

Ten AWESOME Reasons Why You Should List Your Home During the Winter

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Traditional school of thought dictates that selling a home during the holidays is a bad idea.  People are busy celebrating with their families and will hardly go shopping for a home, right?  Not so!  There are numerous advantages to listing a home during this season and below are ten great reasons to put a home on the market now. 

More serious buyers – Less time wasted

These are people who are interested in buying so there is a far greater chance of actually selling the property.  Nothing is more promising to a seller than a motivated and qualified buyer that knows what they want and is actively seeking to get it.

Fewer Homes On the Market

The less competition there is, the higher the chance there is for homes on the market to sell. Where during the peak season sellers might be dealing with some interest from buyers on their home, nonetheless there is more selection for buyers to choose from and they can stray to another property.

In January Inventory Increases – Chances of Selling Decreases

With so many homeowners assuming the holidays is a taboo time to sell there is a plethora of new listings in January, resulting in a diminished chance of your home selling.  Also, there is a risk that the price you may receive on the home can be less.

Decked Halls Look Great!

Homes are very appealing to prospective buyers when they are decorated for the holidays.  With all the festive décor, lights, greenery and added beauty of the season – the home shows very well and attracts buyers faster than if shown during other times of the year.

More Time To Browse Homes

Buyers have extra time off from work and are on vacation, which translates to a more aggressive buying pattern and more chances of your home being viewed.

Show The Home With Flexibility

Sellers that have their home listed prior to the holidays have the added advantage to be able to “pause” the process so they can celebrate the holidays, essentially not showing the home during a period of time during the break.  When the festivities die down, things can pick up again and the seller has not only managed to save potentially lost time but can also jump right back into the market.

Sell Now For More Money Then Delay Closing

Extended occupancy can be negotiated, leaving both parties the leniency to get through the holiday season and past the New Year so that all sides can rest assured the deal is done but it can follow through at a more convenient time.  For sellers this option is great because they are able to secure a higher selling price on the property before the market is inundated with new listings come January when the selling values drop.

Enjoy Non-Contingent Buyer Freedom

With the home sold, sellers can enjoy non-contingent buyer status during the rest of the slow season and take advantage of the market when there is a flood of new listings upon the New Year. 

Fewer Foreclosures On the Market

Many banks will suspend foreclosure listing during this time of year, especially on properties where there are still families occupying the home.  As a result of this, some of the competition that arises for sellers from low-priced foreclosures can be avoided during the holidays.
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Keep in mind that the idea of your home’s value increasing significantly over the next several months is a myth.  The truth is that housing values likely only go up when consumer income rises.  Pay rates increase at a rate of three to five percent each year and that is about the maximum yearly increase we can expect to see in a home as well.  So if you are wondering whether or not to put your home on the selling market now, or to wait – one important factor is that waiting will not provide much benefit.