October Housing Sales Highest Since Housing Boom!

October home sales highest since the housing boom!
Demand rises and inventory declines as market nears stabilization

(Nov. 23, 2009) 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 increasing,” said Gary Parsons, President of the Columbus Board of REALTORS®. “We know the first time home buyer tax credit has had an impact. 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 great sign of stabilization,” adds Parsons. “Demand has picked up, inventory continues to decrease, and the month’s supply is now very close to balanced.”

“The $8,000 tax credit for new homebuyers was renewed 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 further bolster the central Ohio housing market.”

HOW DID YOUR CITY SELL DURING THE RECENT HOUSING CRISIS? YOU MIGHT BE SURPRISED.

Are you curious about the value of your house after the recent economic downturn? Many of my clients are very interested to see how their city stacked up against other Central Ohio Cities. Columbus Monthly published an article with all the statistics for the Central Ohio Area. If you get the magazine, they made some major mistakes and I have the corrections. The statistics are based off of real estate sales from 2005 through 2008.

If I had to describe the trends in one sentence, it would be that the rich areas became richer or lost a little, and the poor areas became much poorer. One of the worst areas was the Northeast Columbus Area which plummeted 63%. Olde Town East area dropped 58%. The worst hit suburban area above I-70 was Reynoldsburg with an 18% drop. There were a few areas that actually had an increase! Please follow this link to see all the details. Central Ohio Sales Statistics

 

 

 

 

 

 

 

 

Lower mortgage rates, prices boost home affordability

Several factors which influence sales, including falling mortgage rates and increased consumer activity
point to a positive future, the Columbus Board of REALTORS® said today.

A total of 1,123 homes changed hands in February, down 23 percent from February 2008.

“In the last several weeks we’ve seen an increase in phones ringing as people are realizing the extra buying
power they have with the new $8,000 first-time buyer tax credit and other incentives, said Gary Parsons, president
of the Columbus Board of REALTORS®. “We expect the credit to make a significant difference for first-time
home buyers in central Ohio.”

“Mortgage rates continue to be near 40-year lows and housing affordability has increased dramatically,” Parsons said.
“There are some amazing opportunities out there for first-time or move-up buyers.”

With an average sale price in February of $133,604, central Ohio homes are at their most affordable prices in years.

The buying power of the typical family has risen over the last several months; average buyers can now afford a home
costing $20,000 more than a year ago, according to the National Association of REALTORS® Housing Affordability Index.

“That figure is a national number and it will vary among individual buyers, but traditionally central Ohio has always been
among the most affordable markets nationwide,” Parsons said.

“Home sales continued to lag 2008 levels, reflecting recent layoffs and economic uncertainty, but I’m hopeful historically-low
mortgage rates, historically-high housing affordability and the $8,000 first-time homebuyer tax credit will combine to increase
sales this spring.”

This was a press release from the Columbus Board of Realtors.

Columbus Area Housing returning to normal

(Jan. 22, 2009) While many markets struggled in 2008, central Ohio fared far better than Ohio and the nation, with inventory, sales and sale prices in keeping with pre-boom levels the Columbus Board of REALTORS® said today.

“Homes sold in 2008 were lower than the previous year, and the average sales price dipped a bit, but overall the local story was better than the national headlines would lead you to believe,” said Gary Parsons, president of the Columbus Board of REALTORS®.

There were 13.5 percent fewer homes sold in central Ohio during 2008 – down from 24,445 sold in 2007 to 21,153 sold last year.

With 13,533 homes for sale last month, December marked the lowest inventory level since April 2005.

Record-high inventory significantly influenced home prices in 2008. Homes were priced more competitively and more homes sold in the lower price ranges, further skewing the average sales price.

The average sale price of a home in central Ohio last year was $163,732, down 5 percent from the 2007 average.

Lowering inventory levels is a key to returning the market to a balance between supply and demand, and ultimately bringing prices back up.

“Yes, 2008 was a challenging year, but when you compare a 5 percent average price drop to other parts of the country, not to mention Ohio, it’s clear why Columbus is consistently considered a stable market,” Parsons said.

“The declining inventory of homes, coupled with historically-low mortgage interest rates should prompt home price increases in 2009,” Parsons added. “There’s a reason we’re telling our clients that now is a great time to buy is because the ability of buyers to stretch their housing dollar probably couldn’t get much better.”

Lower your tax bill!

Do you think you are paying too much in real estate taxes? If you have purchased a house recently this most likely is the case. I have many clients who purchase foreclosure type property and when they close the house is valued at a much higher price than they pay.

For example: I had a client who purchased a house for $22,000 that was taxed at $175,000 by Franklin County. The taxes he was paying on the $175,000 value totaled $2700. After dividing the new price into the old price he was overpaying by $2350!!!! I am in the process of helping him file with the Columbus Board of Revision to lower his tax assessment. I have helped 5 clients lower their tax assessment in the past year. It isn’t that hard of a  process, but you need to have some important documents.

The first thing that the Board of Revision will try to establish is an arms length transaction. Did you purchase the property on the open market. Did it have time for the market to bear a price? You will need the MLS printout showing how many days it was on the market and you weren’t related to the seller. You will also need the HUD-1 closing statement for that property. You must file your forms before March 31st for 2008 taxes. One bonus is that if you have been escrowing your your monthly taxes you will receive a refund from your escrow account for the amounts of overpayment for 2008. Your current escrow payment will go down as well.

Make sure you don’t advertise to the Board of Revision that you have done any major work to fix the property up. They will try to prove you have put a bunch of money into the house after you bought it for a depressed price. You might have to show inside pictures when you bought the house to show it wasn’t totally trashed.

You can also try to lower your tax value eve if you didn’t just buy your house. If you have seen houses selling for much less than normal lately, you can use those as comparable sales for your complaint.

 

 

Please contact me for the correct forms for your county. Visit www.ChadMillerHomes.com for all my contact info.

Chad Miller

Chad@ChadMillerHomes.com

Interest Rates Drop Yet Again!!

If you have been on the fence about whether to buy real estate in the past few months, now is the time to get in. Home prices are affordable and interest rates are dipping under 5%. They could go even lower, but it is very risky to play the waiting game. Rates could continue to rise in the near future and you could end up back at 7% or 8%. You will be kicking yourself at that point.

The FED is meeting today and could drop rates again. You will lock your rate in when you have an accepted contract to purchase a home. Some lenders will let you lock in prior to that for a fee, but normally they wait for a contract. If you are looking to refinance out of a bad loan, now might be a great time as well.

If you are buying a house in a rural area you have to read further. The USDA is offering financing assistance on rural homes where you can come to closing with zero dollars. Rural includes Pataskala, Galloway, Canal Winchester and parts of Blacklick. Most conventional loans are requiring 10% down, but with this loan you can have your closing costs paid and bring no down payment. I just had clients use this loan and they saved $4500 in down payment money. With the $7500 interest free loan this spring, you will save some serious money and have money to put back into the house!

There are many tricks for getting great value on homes and mortgage loans that only very experienced agents in this new real estate market will give you. Pleas visit my website at www.ChadMillerHomes.com for more info.

Mortgage Bailout?

The most recent attempt for a plan to bail out the the average United States mortgage holder is very flawed. They are planning on restructuring your loan if you are more than 3 payments behind on your mortgage. This will benefit the people who are not being responsible withpaying their debts. This bailout will actually encourage people to fall behind on their mortgage and get a restructuring that will save them money. With millions of americans barely holding on to their house when houses around them are dropping in value by 10 to 50 percent, they will now have a good reason to stop paying.

Will this effort actually keep people in their houses which will lower the supply of foreclosures? If that is the intended outcome I am anxiously awaiting to see if that will actually work. This is a big risk to take with many other negative scenarios that could take place. We will have to wait and see.

Chad Miller

Prudential Callhoon Company

www.ChadMillerHomes.com

HUD continues $100 down, $2500 owner occupant cash back credit

If you are a prospective homeowner you must consider buying a HUD owned home as a way to invest in your future. Not only can you avoid the new FHA 3.5% down, but you actually get $2500 back at closing for repairs or closing costs. This can make a big difference in your bank account, and if you are anything like me you don’t want to give the bank anymore money than you have to.

If you want to learn more about buying a HUD home you can search available HUD houses at my website. I can also put together a list for you if you let me know what area and price range you are looking.

Oh, and by the way I have seen HUD accepting as low as 19% of list price!!!!!!!!!!!!!

Ohio State Vs. USC Football Game

I wanted to take a break from the slow real estate market and describe to you my experience at the OSU vs USC football game from last weekend.

A group of friends and I flew into Las Vegas on Wednesday before the game. The Palms treated us very well by taking our money at the blackjack table and charging $12 a drink at the pool. We then jumped in a 12 passenger van driven by me to LA on Friday. Everybody else slept while I drove.

We checked into a hotel in Santa Monica where we were upgraded to a suite! Things were looking up. We were treated very rudely by LA people because of our Ohio State Gear. Most of them looked like they had never even finished High School let alone went to USC.

We luckily fell into a USC parking pass that put our Van and tailgate 20 yards from the stadium! The Animal and Gordon Gee stopped by our tailgate. Watch the video here.  We were having a blast feeling good about the game. Our tickets were OK and the energy in the stadium was electric. The only thing Ohio State forgot to do was show up for the game. We stayed and watched the whole game with our tail between our legs.

To top off the whole trip it took me 18 hours to get home on Sunday and came home to no electricity. I am currently writing this blog from Panera which has been my new office for the past two days.

I hope things are going well for you.

 

Chad Miller

HUD Foreclosures in Columbus Ohio

HUD FORECLOSURES IN OHIO

 

What does HUD Foreclosure mean? Many buyers are talking about purchasing a HUD home, but few understand what they are. I have represented buyers on the purchase of HUD homes for many years. I have also purchased HUD homes for my own investments.

 

HUD stands for the department of Housing and Urban Development. FHA stands for the Federal Housing Administration. FHA has backed over 35 million loans since 1934. If you default on your FHA mortgage then HUD is required to buy out the loan from the Bank who lended the money. The house is then listed for sale by a local broker who works with HUD.

 

How can you make money on HUD homes?

 

HUD houses are only available to owner occupants for the first 10 days. After this point it opens to investors. Having purchased a HUD home, I know firsthand the money that can be made on these properties. Often times the property is listed well below normal houses, and then they will routinely accept 10% lower. On average my clients will pick up a property at 30 to 60 percent off. Most properties will require a rehab, but some properties just need a little TLC. Visit my website at www.CRMHOMES.COM to request a list of HUD homes.

 

Why is an FHA loan in high demand?

 

Unlike conventional loans, FHA-insured loans require small down payments. With the recent mortgage crisis, conventional lenders are requiring more money down than just 2 years ago. There is more flexibility in an FHA loan than conventional loans in calculating household income and payment ratios. The cost of the mortgage insurance is passed along to the homeowner and typically is included in the monthly payment. In most cases, the insurance cost will drop off after five years or when the remaining balance on the loan is 78 percent of the value of the property-whichever is longer.

 

Who can buy a HUD homes?

 

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

 

 

There are many inside tips to buying HUD homes. You should meet with a licensed real estate agent who has experience with this type of purchase. HUD homes have special rules and regulations that don’t pertain to normal real estate transactions in Ohio. Shoot me an email to Chad@CRMHOMES.COM with any questions.

 

Chad Miller

Prudential Calhoon Realtors

Cell#614-264-9257

Fax #866-217-6172

www.CRMHOMES.COM

Chad@CRMHOMES.COM

 

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