Sales up for 5th month, 20% fewer homes on market than in 2010
This Morning’s Press Release from the Central Ohio Board of Realtors:
Home sales remain elevated in central Ohio
(Dec. 21, 2011) November marks the fifth consecutive month of increased home sales in central Ohio this year after the first half of the year struggled to keep up with increased sales from 2010 due to the home buyer tax credits. According to the Columbus Board of REALTORS®, 1,406 homes sold in November which is seven percent more than the previous year.
Additionally, the number of residential homes scheduled to close was up over 37 percent, from 1,341 last year to 1,843 last month (November 2011).
“We’re finding that sellers recognize the challenges of today’s market and are realistically pricing their homes to sell,” says Rick Benjamin, 2011 President of the Columbus Board of REALTORS®. “Buyers are responding well to the pricing and, of course, the record low interest rates. It’s still a great time to buy a home.”
Homes in central Ohio this year have sold for an average of $157,032, down 2.5 percent from the average sale price in 2010, but up over five percent from the average sale price in the first quarter of 2011. The average price of a home sold in November was $153,673, up 3.1 percent from the previous month ($149,082).
The number of homes listed for sale last month (1,949) is 20 percent less than listings added to the market in November 2010 (2,439). The total inventory of homes available for sale in central Ohio was 12,675 at the end of November, which is down 27.5 percent from one year ago. <– That’s the key phrase and why things are normalizing.
As a result, the month’s supply, a measure of inventory that estimates how many months it would take to sell the entire home inventory, fell 28.5 percent to 7.4, down from 10.3 last year.
“A healthy months supply for our market would be around 6.5. So the decrease in inventory is a positive sign of market recovery,” adds Benjamin. “Plus, based on the concept of supply and demand, when we have too many homes on the market, homes are more likely to sell for less.”
Click here to view the November sortable housing market report by area.
Click here to view the entire central Ohio Local Market Update.
Discussion: Join The Discussion!
The Homestead Exemption in Franklin County – What is it?
The homestead exemption is a statewide program administered by the County Auditor that offers qualifying homeowners a reduction on their real property or manufactured home taxes. Senior citizens and permanently and totally disabled homeowners may reduce their property tax burden by shielding some of the market value of their home from taxation.
The primary responsibilities of the homestead section are to assist taxpayers with the homestead exemption application process as well as maintain and update existing application records. There were 53,030 homeowners in Franklin County who received the credit for 2009 real property taxes and 859 manufactured home owners who received the credit for 2010 mobile home taxes, for a total savings of $27,208,382.30 during calendar year 2010.
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Columbus Ohio area Home Sales up 8.6% in October
I’m finding that the market continues to be relatively active, more so than past years at this 4th quarter time of the year. More listings, more showings, more buyer actively looking and even beginning their searches late in the year.
Here is what the Board had to say about last month’s numbers. Note the bold orange quote from the Board President about contract failures…
“Home sales in central Ohio home have exceeded 2010 for the last four months according to the Columbus Board of REALTORS®. The 1,543 homes sold in October marks an 8.6 percent increase over the 1,421 homes sold in October of 2010. Home sales in September were up 16.6 percent compared to the year before.
Year-to-date, home sales (January through October 2011) are only 2.1 percent behind 2010 and closing the gap. Homes put in contract last month (1,379) were up 46 percent from a year ago making October the sixth straight month of increased contracts.
“The number of homes put into contract have been up for the last several months,” said Rick Benjamin,2011 President of the Columbus Board of REALTORS®. “However, contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price continue to be a problem for central Ohio buyers.”
Total housing inventory at the end of October fell 23.3 percent to 13,827 existing homes available for sale, which represents an 8.1-month supply at the current sales pace, up from an 8.7-month supply in September.
The average sale price for single family homes and condominiums year to date is $157,327, down 2.4 percent from homes sold January through October 2010.
“Affordability conditions this year have been the most favorable on record since 1970,” said Benjamin. “As mortgage interest rates continue to remain low, more first time home buyers, investors and move up buyers are being drawn into the housing market.”
Click here to view the October sortable housing market report by area.”
Click here to view the entire central Ohio Local Market Update.
The Columbus Board of REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware,
Fayette, Licking, Madison, Morrow, Pickaway and Union Counties and parts of Athens, Champaign,
Clark, Clinton, Fairfield, Hocking, Knox, Logan, Marion, Muskingum, Perry and Ross Counties.
Discussion: Join The Discussion!
Restoring FHA loan liquidity: Call your State Senator
NAR Call For Action: The restoration of the FHA loan limits is vital to homeownership, economy
On Oct. 1 the mortgage loan limits declined in 669 counties in 42 states. This immediately reduced mortgage liquidity and home buyers’ ability to obtain a mortgage. The House and Senate are now deciding whether or not to restore the loan limits.
The restoration of the loan limits to their prior levels has been included in an Appropriations bill being deliberated by Congress this week. Senators Brown and Portman are members of the group of Congressional leaders who will decide whether Congress will restore the loan limits. This is why they need to hear from you today.
Please CALL Sherrod Brown’s and Rob Portman’s offices to ask that they support the restoration of the loan limits in the Appropriations Bill.
Discussion: Join The Discussion!
Worried about Losing your Columbus Home to Foreclosure? Find out The Ins and Outs of Obama’s New Mortgage Refi Plan
DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 25, 2011
President Obama announced Monday a plan to ease eligibility rules for home owners who want to refinance to take advantage of ultra-low mortgage rates and lower their mortgage payments. The administration hopes that by broadening its requirements for the Home Affordable Program that about 1 million home owners will now be able to qualify.
Here are more details about the newly announced changes to the program:
What is HARP?
It’s a program started in 2009 that allows home owners to refinance their mortgages at lower rates without having to meet the typical requirement of having at least 20 percent of equity in their home to do so. Under current guidelines, many underwater borrowers have been ineligible for the program because their home values had to be no more than 25 percent below what they owed their lender. Also, some home owners were unable to afford the closing costs and appraisal fees to participate.
What’s changing?
Many of the extra fees to participate in the program have been waived, and home owners’ eligibility won’t be contingent on how far their home’s value has fallen.
Who’s eligible?
- Home owners with loans backed by Fannie Mae or Freddie Mac can participate. (Home owners can visit: freddiemac.com/mymortgage or fanniemae.com/loanlookup to determine if their mortgage is owned by either).
- Home owners must be current on their mortgage.
When will it take effect?
The changes could take effect by Dec. 1. HARP also is being extended through 2013 to allow more home owners the opportunity to qualify.
How successful will this be?
The administration hopes that by home owners being able to lower their monthly mortgage payments (with an average annual savings of $2,500 expected), they’ll be more likely to stay current on their mortgage and avoid foreclosure. Also, the administration hopes that it will then free up household money to start spending more on other things, which could provide an overall boost to the economy. However, the administration says it realizes that aiding the housing market requires much more than a refinancing plan.
“This is only one piece of a broader strategy to help the housing market,” says Housing Secretary Shaun Donovan. Donovan also notes federal efforts to help home owners who are delinquent on their mortgages and the unemployed.
Source: “A Guide to Administration’s New Mortgage-Refi Plan,” The Associated Press (Oct. 24, 2011) and “Refinancing Plan Won’t Help Housing Market Much,” CNNMoney (Oct. 24, 2011)
Read More:
Gov’t Officials Urge Banks to Help ‘Underwater’ Borrowers
Discussion: Join The Discussion!
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