Renewable market optimistic as prices continue to stabilize

(Dec. 22, 2009) The month of November saw home sales soar 59.5 percent from this time last year with 1,839 listings purchased! Not since 2005 have November numbers been so high.

“Historically low interest rates and the tax credits for homebuyers put first time homebuyers in an ideal position to take advantage of the market,” said Gary Parsons, President of the Columbus Board of REALTORS®. “And with the expansion of the tax credit, we expect to see more renewable buyers enter the market in 2010.”

When the $8000 tax credit was renewed in October, it was expanded to include a $6500 tax credit for homeowners who wish to purchase a new residence. Those renewable buyers, or current homeowners who wish to purchase a new house, have been slow to return to the market but Parsons notes that as prices continue to stabilize, more renewable buyers will find new homes.

The stabilization of home prices was reflected in the average home price of $145,589, an increase of 1.5 percent compared to November 2008. 

To date, 2009 home sales are at 18,771, up 10.9 percent year-over-year. Homes spent an average of 92 days on the market, down 3.2 percent from this time last year and 1.1 percent lower than October’s average.

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington

Deterioration in job markets is abating and economic activity has picked up but is likely to remain weak for a time, the Federal Reserve said in leaving its target for a key short-term interest rate at zero to 0.25 percent.

The housing sector “has shown some signs of improvement over recent months,” and household spending “appears to be expanding at a moderate rate,” the Federal Reserve Open Market Committee said in announcing its decision to leave the federal funds overnight rate unchanged.

While the Fed is expected to start raising short-term interest rates if signs of inflation emerge, the economy remains constrained by a “weak labor market, modest income growth, lower housing wealth, and tight credit,” the committee said.

The Fed said it remains committed to continuing through March a program credited with keeping rates on mortgages low. The Fed is purchasing $1.25 trillion of mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae, and $175 billion of Fannie and Freddie debt.

In a forecast published Dec. 8, the Mortgage Bankers Association projected rates on 30-year fixed-rate mortgages will rise for the next eight consecutive quarters, from an average of 4.9 percent during the final quarter of 2009, to 6.2 percent by the fourth quarter of 2011.

The group forecast that the 30-year fixed-rate mortgage will average 5.5 percent in 2010 and 6 percent in 2011, up from 5 percent in 2009.

The Mortgage Bankers Association stated that the average contract interest rate for 30-year fixed-rate mortgages for the week ending Dec. 11 increased to 4.92 percent from 4.88 percent, with points decreasing to 1.08 from 1.17 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

A separate survey by Freddie Mac showed the 30-year fixed-rate mortgage hitting a record low of 4.71 percent during the first week of December in records dating back to 1971.

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington  

Demand rises and inventory declines as market nears stabilization

Home sales in the month of Oct. were up 25.6 percent from this time last year! The 2,021 sales last month represents the highest number of listings sold in the month of October since the housing boom in 2006! 

At a time when sales traditionally start to taper off, central Ohio home sales are actually increasing. The first time home buyer tax credit has obviously played a role and had an impact in this but, the fact that we have a solid inventory of homes available at very affordable prices and interest rates are still at record lows has also strengthened our housing market.

The number of homes in contract (but not yet closed) is also up. The 1,539 homes in contract is 17.2 percent higher than last year at the same time suggesting that November home sales will also be strong.

The month’s supply has dropped 30 percent from last year! Last year at this time, the months supply was 9.82 meaning that if no new homes were added to the market, it would take almost ten months to sell all remaining inventory. Today, that number is down to 6.86. A market is typically considered balanced with around a 6.5 to 7 months supply.

These numbers are a strong sign of stabilization. Demand has picked up, inventory continues to decrease, and the month’s supply is now very close to balanced. Furthermore, the $8,000 tax credit for new homebuyers was extended earlier this month and added to it was a $6,500 tax credit to benefit those homeowners who wish to purchase a new residence. This incentive will only further bolster the central Ohio housing market.

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington

Home sales increase seen for the first time in over two years! 
Highest number of home sales seen in September in three years. 

Home sales increased over ten percent in September compared with last year. The 2,012 homes sold was 10.3 percent higher than September of last year and marks the first year over year increase in sales central Ohio has seen in over two years according to the Columbus Board of REALTORS®.

Not only did home sales increase last month for the first time since July of 2007, but they increased to the highest level we’ve seen in September since 2006.  

This is likely due to the urgency felt by first time home buyers to take advantage of the $8,000 tax credit that expires November 30 of this year.  

The number of homes for sale in central Ohio continues to decrease. With 14,204 listings, inventory levels are down 2.4 percent from the month before and down 14.4 percent from September of 2008. This is the lowest level of inventory the area has seen this time of year since 2004.

The average sale price last month was $160,094 which was just 0.4 percent lower than one year ago.  

As inventory decreases, home prices continue to inch back up, but with an average home price of $160,094, central Ohio continues to be a very affordable and attractive market for home buyers.”

One year ago, the month’s supply was 9.10. But with the increase in sales and drop in inventory, the month’s supply is now down to 7.06. This number means that if no new homes were added to the market, it would take slightly more than seven months to sell all remaining inventory. A market is typically considered balanced with around a 6.5 to 7 month supply.

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington

Recent housing reports are generating some incredibly positive headlines and prompting many to wonder, has the housing market hit bottom? Before we attempt to answer this complex question we should note that market bottoms, like market peaks, are not clearly definable or easily apparent until long after they have passed. Furthermore, real estate is highly local and national trends are not reflective of all markets, therefore what constitutes the bottom for the country is likely meaningless for those looking to buy and/or sell homes in their own local communities and neighborhoods (also bottoms often occur across different price points at different times).  While there’s widespread belief that a market bottom is something that comes and goes, and if you’re not jumping into the market at the bottom, it’s to late, this isn’t always true.

With that said let us first define what a market bottom looks like. A housing market bottom is a trend highlighted by a combination of two distinct factors, increased sales volume and stabilizing home prices.

Up until recently the signs pointing to a recovery in the housing market were largely limited to an increase in volume and a slowing in price declines. While a recovery in volume is significant, and wildly important to the future short-term strength of the housing market, in and of itself it does not represent a market bottom.

The most recent national housing data is more encouraging however, and provides evidence that not only have pending home sales risen for the past 7 straight months (a pattern not seen in the history of the index), but the S&P Case-Shiller index of home prices has seen three straight months of gains (the only three times index has risen in the past 3 years and a trend which is further articulated by the Federal Index). While three months of gains can hardly be considered a trend, this evidence does point to an upward turn from the bottom and is highly encouraging as national trends and consumer confidence are important factors as in the short-term prices will be driven by both macro-economic as well as psychological factors. However, as mentioned real estate is local and we must also closely examine our own local market.

Locally, homes sales dipped slightly in August while inventory, average sales prices and days on the market all showed important signs of improvement. Home sales for the month of August were off by 7.9% year over year, and 3.06% month over month. The average sales price however, was up 1.08% in August to $168,873, compared to $167,039 in July (prices are down just 3.8% from August of 2008). Inventory levels are also coming down, as in August there were 14,554 homes on the market (7.3 month’s supply meaning that if no new homes were added to the market it would take 7.3 months to sell all remaining inventory), marking a 14.2% decrease year over year and resulting in decreased in the number of days homes are staying on the market, an average of just 92 days in August, the lowest point since July of 2006.

The Federal Index reports nationally home prices rose .3% in July (and were down .6% in August to $177,700) while inventory levels decreased 16.42% year over year to an 8.5 month supply. Distressed properties continue to downwardly distort the median home prices both locally and nationally as they generally sell for 15-20% less than traditional homes sales.

While the market does appear to have stabilized and appears to be in recovery, especially here in Columbus which is faring significantly better than the national market, sustained price increases in home prices aren’t likely and expectations are this recovery will be one in which volume continues to lead the way with values continuing to improve over the next 12-24 months.

But for now, the market recovery does appear to be underway and if you’ve been sitting on the fence wanting desperately to get into a home, or to move up to a larger home in a better community, now is the time! With prices down and interest rates near record lows, there has never been a better time to buy a home!

For information specific to your community, or to request a free, no obligation valuation of your own home please call us at 614.332.6984 or email us at theoplandgroup@gmail.com.

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington

Extended and Expanded

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, has been extended through April 30th of next year and buyers will have an additional two months, until the end of June to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30th deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.                                                                                                                                                                                                                                           For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less. The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.Eligibility depends on a number of factors, including income, homeownership status, and the exact purchase date of the home. To be considered a first-time buyer by the IRS, you must not have owned a home for the three years prior to your purchase. Longtime homeowners must’ve lived in their homes for five consecutive years during the past eight years.

The IRS has also spelled out new guidelines for the credit when co-borrowers purchase a property. When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the full $8,000. The parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Revised rules apply to those who buy between Nov. 7, 2009, and April 30, 2010. Buyers who made purchases on or before Nov. 6, 2009, are covered under an older set of guidelines.

New rules for first-time homebuyers

First-time buyers who purchase a home between Nov. 7, 2009, and April 30, 2010, may be entitled to a federal tax credit worth 10% of the sale price or $8,000, whichever is lesser. Income restrictions apply. The tax credit for joint filers begins to phase out at a modified adjusted gross income of $225,000 ($125,000 for individual taxpayers). The credit disappears entirely at $245,000 for joint filers ($145,000 for individuals).While first-time buyers must enter into a binding contract to purchase a principal residence by April 30, the closing can take place as late as June 30, 2010. The home can’t cost more than $800,000.Qualifying purchases in 2009 can be claimed on your 2008 or 2009 return. File an amended return for 2008. Purchases in 2010 can be claimed on your 2009 or 2010 return. To get the credit for the 2009 tax year on a purchase that closes after April 15, 2010, either request an automatic filing extension or file an amended 2009 return.The first-time homebuyer tax credit is “refundable,” meaning you can earn it even if you owe no federal tax, the credit exceeds your total tax liability, or you have little income. Claim the credit on IRS Form 5405, which should take less than an hour to fill out. It’s a good idea to consult a tax adviser.

Old rules for first-time homebuyers

First-timers who bought a home between Jan. 1, 2009, and Nov. 6, 2009, may also be eligible for a federal tax credit worth up to $8,000. A tax credit reduces your tax bill or increases your refund dollar for dollar. In general, whether under the old rules or the new rules, you’ll be required to repay the full value of the credit to the IRS if you don’t maintain the home as your principal residence for three years.First-time buyers subject to the old rules face tighter income limit. The phase-out kicks in for joint filers when modified adjusted gross income hits $150,000 ($75,000 for individual taxpayers). It disappears entirely at $170,000 for joint filers ($95,000 for individuals). Married filing separately taxpayers can claim only up to half of the $8,000 credit.First-time buyers in 2008 were subject to a different tax-credit program. Homes purchased after April 8, 2008, and before Jan. 1, 2009, were eligible for a credit worth the lesser of $7,500 or 10% of the home’s purchase price. Income limits and phase-out ranges were the same as those for first-time buyers between Jan. 1, 2009, and Nov. 6, 2009.The biggest difference between 2008 and 2009 was that the tax credit in 2008 really functioned as an interest-free loan that must be paid back over 15 years. The first of the annual installments should come due on the 2010 tax return filed in 2011. With few exceptions, if your home ceases to be your main residence during those 15 years, you have to pay back the outstanding amount with the subsequent tax return.

Tax credit for longtime homeowners

If you’re a longtime homeowner—meaning you’ve lived at your principal residence for five consecutive years out of the last eight—you may qualify for a homebuyer tax credit worth up to $6,500. You must purchase a new principal residence between Nov. 7, 2009, and April 30, 2010. Like the first-time homebuyer tax credit that applies to these dates, you can settle as late as June 30, 2010, as long as you have a binding contract by April 30.The same $800,000 cap on the purchase price applies to longtime homeowners, as do the same income restrictions. The credit begins to phase out for joint filers at modified adjusted gross income of $225,000 ($125,000 for individuals), and disappears at $245,000 ($145,000 for individuals). Married couples filing separately are eligible for up to half of the $6,500 credit.For both first-time and longtime buyers who want to claim the tax credit for a purchase made after Nov. 6, 2009, the IRS requires proof. Attach a copy of the settlement statement you received at closing to your return. You must be at least 18 years old.

Other restrictions and provisions

As long as they serve as principal residences, single-family homes, townhouses, co-ops, and condos are all eligible for a tax credit. Mobile homes may be eligible for the credit, even if the land itself is leased. Owning a vacation home or rental property doesn’t disqualify you as a first-time homebuyer, but you do have to make it clear such properties were never your principal residence.You won’t be eligible for the tax credit if you’re buying from a close relative. For example, if your mother goes into a nursing home and you buy her house from her, you can’t claim the credit. Close relatives include parents, grandparents, children, grandchildren, your spouse, and your spouse’s family.

Home sales, pricing and inventory remaining consistent

Average sales price increases slightly from July, down just 3.8 percent from ’08

Home sales dipped slightly in August while inventory, average sales prices and days on market all showed important signs of a healthy housing market.

August home sales were off by 7.9 percent compared to August 2008, with a total of 1,994 sold, while inventory and the average days on market both declined.

The average sales price crept up in August to $168,873, from an average of $167,039 in July and was down only 3.8 percent compared to August 2008.

Affordable pricing, historically low interest rates and incentives including the $8,000 first-time homebuyer tax
credit are all positively impacting the central Ohio housing market.

Pricing has remained consistent this summer while inventory and the length of time homes are for sale is trending downward, illustrating how competitively-priced homes are keeping central Ohio’s housing market balanced.

With 14,554 homes on the market in August, it marked a 14.2 percent decrease from August 2008 and a 26.4
percent decrease from August 2007, illustrating the market’s continued correction. New listings were down 20.9 percent compared to last August.

The number of days homes are staying on the market has decreased significantly. At an average 92 days, it is at its lowest point since July 2006, which was also at an average of 92 days.

The average sales price is down less than 4 percent compared to last year, while homes are, on average, selling quicker. These factors, combined with a dramatic drop in inventory have helped stabilize prices,
and restore consumer confidence.

The month’s supply number for August continued to remain favorable at 7.3, meaning that if no new homes
were added to the market, it would take slightly more than seven months to sell all remaining inventory.
A market is typically considered balanced with around a 6.5 to 7 month supply.

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington

Home sales and inventory levels remained steady in July, as more than 2,000 homes were sold, and sales were off by only 2.9 percent compared to 2008 levels, the Columbus Board of REALTORS® said today.

Nationally sales soared to 7.2% in July posting the largest monthly increase in at least 10 years! Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth straight monthly increase and the strongest month since August of 2007.

The home sales report is another sign that the US economy is on the road to recovery after enduring a brutal recession and the worst financial crisis since the Great Depression.

Economic activity in both the US and around the world appears to be leveling out and according to Fed Chairman Ben Bernanke, “the prospects for a return to growth in the near term appear good”.

As the economy continue to improve so will the housing market and property values and as we’ve previously reported the Columbus Housing Market has seen it’s bottom.

“Pricing, inventory, and supply levels all show that we are coming out of the bloated housing market we saw a year ago,” said Gary Parsons, president of the Columbus Board of REALTORS®.

“These key factors in real estate are all remaining consistent and balanced – signs that the central Ohio housing market continues to head in the right direction.”

At $167,039, July’s average sales price was only off 4 percent compared to the same month in 2008 (Nationally the median resale home price dropped 15.1% a number that was weighed down heavily by markets such as California, Nevada and Michigan where distressed home sales make up the bulk of area sales however, these markets are now seeing increased interest from investors, more cash offers and short market times which further supports the notion of a market that’s hit bottom). Regionally, the median price dropped 28% in the West, 15% in the Northeast, 7.1% in the South and 5.9% in the Midwest in July 2009 over the same  month last year. Meanwhile the sales rate rose 8% in the Midwest, 5.4% in the South, 3.3% in the Northeast and 1.8% in the West year over year in July.

Total inventory and new listings both fell by double digits, indicating a housing market that is more balanced than last summer.

With 14,880 listings on the market, inventory is down 16 percent from the more than 17,000 homes which were for sale this time last year; new listings were also down 16.2 percent in July compared to 2008.

The month’s supply number for July continued to remain favorable at 7.23, meaning that if no new homes were added to the market, it would take slightly more than seven months to sell all remaining inventory.

A market is typically considered balanced with around a 6.5 to 7 month supply.

It appears the end of summer and early fall are going to remain strong in central Ohio as sellers take advantage of favorable pricing and incentives like the $8,000 first-time homebuyer tax credit.

With just 101 days left until the tax credit expires, we encourage those fence sitters to act now!

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in June, rose 3.6 percent to 94.6 from an upwardly revised reading of 91.3 in May, and is 6.7 percent above June 2008 when it was 88.7.  The last time there were five consecutive monthly gains was in July 2003.

Lawrence Yun, NAR chief economist, said a combination of positive market factors is fueling the gains.  “Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines.  Activity has been consistently much stronger for lower priced homes,” he said.  “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”

Sales Continue to Increase as Market Balances
Month’s Supply, Key Indicator of Supply & Demand Hit 3-Year Low!
 

More than 2,000 homes changed hands in June, the highest number in 10 months, as the market reached its most balanced levels in nearly three years, the Columbus Board of REALTORS® said today.

Month’s supply – the figure that best illustrates the relationship between supply and demand in the housing market – is at its lowest point since August 2006.

The month’s supply number for June was 7.12, meaning that if no new homes were added to the market, it would take slightly more than seven months to sell all remaining inventory.

This new low is important as it further illustrates that our local central Ohio market is returning to equilbrium and further supports our opinion that we have hit the bottom in our local market. A market is typically considered balanced with around a 6.5 to 7 month’s supply.

New listings were also down by 13.2 percent compared to last June.

June marked the highest number of homes sold in a single month since August 2008. There were 2,092 homes sold in June, a 15.6 percent increase over May but down 6.7 percent from June 2008.

More than 1,600 homes went into contract in June, more than any other month since last August, which is a promising sign for the second half of summer sales and the central Ohio market.

We are continuing to see more homes sell; more go into contract, and fewer entering the market which is good news for sellers – but encouragement for buyers to take advantage of the deals that are out there as prices will begin to climb as the market continues to balance itself.

The average sales price was $169,270 in June, the highest in nearly a year, but still off by 6.2 percent compared to June 2008.

Opportunity is knocking loudly for many considering homeownership. Home prices have declined in many markets around the country (the Home Affordability Index stands near an all-time high thanks to price declines and historically low mortgage rates), and tax incentives and other inducements create an opportunity the likes of which we have never seen and are never likely to see again!.

While some consumers have been holding off on purchases as they attempt to catch the home-price bottom (which it appears we’ve hit here in Central Ohio), they could miss the mortgage-financing opportunity of a lifetime. Rates remain at historic lows but expectations are that they won’t stay here much longer! Buyer should take advantage of this once in a life time market and I expect that with only 130 days left to take advantage of the $8,000 first-time homebuyer tax credit, many will do just that! 

If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!

The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in;  Bexley  Columbus  Delaware  Downtown  Dublin  Gahanna  Grandview Heights  Granville  Grove City  Groveport  Hilliard  Lewis Center  New Albany  Pickerington  Polaris  Powell   Upper Arlington  Westerville  Worthington