Panic Working like a Charm

Panic Working Like A Charm; Home Prices Mostly Down In Juneby Blanche Evans
Despite positive fundamentals such as low unemployment, rising wages, and low borrowing rates, consumers are panicked about the housing market and sitting out a golden opportunity to buy at low interest rates with plenty of inventory to choose from. One reason is the constant drumbeat by the press that housing prices are softening, but consumers aren't getting much insight or perspective along with their daily thumping of bad news.
Read the entire article in Realty Times at:
http://realtytimes.com/rtapages/20070829_paniccharm.htm


Local Market

Locally, we continue to see homes selling at a rate just below 2006 levels, which was another record year. Sellers who purchased on the past 2-3 years are struggling to break even on their net funds received at sale. But that’s nothing new. We tell buyers to expect to breakeven after 3 years and likely loose some money if you have to sell before that time.

The primary issue continues to be the size of the inventory (16,505 homes for sale as of August 31, 2007) coupled with what appears to be more repossessions and bank owned properties than we have seen in recent past years. Some of the bank owned properties sell below the “expected market value” in order to sell quickly.

Many of the bank owned homes, being under-priced, sell very quickly and with multiple offers. It just means that in most areas of Central Ohio sellers must price competitively, be in excellent condition compared with the competition, and be ready to wait a little longer to sell than in past years.

Average days on market for single family homes normally was 80-100 days in past years. Average days on market for all homes sold January 1st to August 31, 2007 is 105 days. Average days on market for current active for sale homes is 117 days.

The real estate market is still healthy in Central Ohio.