Real Estate Information

This year, Warren  County, Ohio did its housing reassessment for the first time in three years.  They used recent sales prices to determine the value of properties. The results of their study of values revealed a drop of an average of 11%.

Officials feel that setting a realistic value for properties is important even though this will affect the counties ability to generate funding. The decrease in value will not cause a corresponding decrease in taxes paid.  The funding formulas are complex and designed to give schools and special levies virtually the same dollar revenue. However, as a result, the county has made efforts to reduce spending by at least 5%.

Cincinnati mortgage interest rates dropped below the 5 percent threshold in October, enabling buyers and facilitating market activity across the country. Freddie Mac is reporting that the average commitment rate for a 30-year, conventional fixed rate loan has dropped to 4.96 percent, down from a September low of 5.06 percent.

"Mortgage interest rates last month were the third lowest on record dating back to 1971," according to Lawrence Yun, chief economist for the National Association of Realtors. In November, Freddie Mac reported another decrease in the 30-year rate to 4.83 percent. "With the abnormal drop in home prices over the past few years, the price-to-income ratio has fallen below the historic trend line," Yun said. “This is adding to the buying power of the typical family, with affordability conditions this year at the highest on record dating back to 1970, but prices are beginning to flatten and are poised to rise next year."

The accompanying graph shows the average and median prices of single family homes and condos sold in Cincinnati, Ohio for the last five years.  It is easy to see the impact of the recession on prices, continuing to decrease since 2007.  While Cincinnati has not suffered the same percentages of price decreases as some areas of the country, the price decreases have been significant.  They have affected the equity that all owners have in their properties and their optimism about selling. 

From national information and statistics about pending sales, it appears as though the tide has turned.  We anticipate that we will start to see prices turnaround in the second quarter of 2010.  Because all cities are made up of many neighborhoods, we are already seeing an uptick in some neighborhoods.

Give us a call for more details about your specific neighborhood.

Princeton Review ranks University of Cincinnati    

In late summer, the Princeton Review which relies heavily upon student reviews, rated the University of Cincinnati as one of the top 371 schools in the nation.  They were featured for diversity, "green" initiatives and quality of life.  The cooperative education, study abroad and internship programs were all praised.

Additionally, the College of Business was recently ranked in the top 100 in the nation.  Of particular note was the combination Business / Arts degree (only one nationwide) and several research programs including the Goering Center for Family and Private Business and the Center for Entrepreneurial Education and Research.

The  Law School was also chosen to be featured in the Princeton Reviews annual ranking of the Best 172 Law Schools around the country.  This award is in addition to the US News and World Reports rank at #24 for jobs within nine months of graduating and #52 overall nationwide.

Let's take a look at the housing market in Sycamore School district's neighborhoods of Montgomery, Blue Ash, Symmes Township, and Sycamore Township, Ohio...in Cincinnati's first-ring suburbs.   We are grouping them together because they tend to attract the same group of buyers looking for a large, outstanding school district.  Homes include a limited number of new construction to 60+ years old, with the price range varying from $100-700,000.

To give you perspective about the market, the graph shows sales for the past five years, through October 31, 2009.  You can easily see the increase in prices and the decrease as the recession strengthened.  Part of that price decrease can be attributed to a higher percentage of lower priced listings sold. 

With loans harder to acquire, higher priced homes listed at over $450,000 have struggled to find buyers, both because of the inability to sell the buyer's home and the difficulty in getting significant down payments.  This brings the median price down significantly.

 Currently the area has 266 active listings on the market.  There are 52 pending sales.  The average home sold in 101 days. If you use the last year's number of sales and compare it to the number of active listings, there are approximately 9.5 months of inventory on the market.  Looking only at the number of pending sales to active listings, a more robust market would be anticipated. The National Association of Realtors indicates that six months of inventory is a balanced market.

Let's take a look at the housing market in Mt. Adams, Ohio...within walking distance of downtown Cincinnati.   This neighborhood tends to attract both young professional buyers and downsizing seniors, excited about living around Eden Park and the proximity of cultural institutions, restaurants and downtown. Homes are 70-125 years old with significant remodeling and updating. Typical price ranges start at $200,000 and go up to more than $3,000,000.

To give you perspective about the market, the graph shows sales for the past five years, through October 31, 2009.  You can easily see the increase in prices and the decrease as the recession strengthened.  There are very few homes listed under $200,000 in this small area.

With loans harder to acquire, higher priced homes listed at over $450,000 have struggled to find buyers, both because of the inability to sell the buyer's home and the difficulty in getting significant down payments.

Currently the area has 53 active listings on the market.  There are 2 pending sales.  The average home sold in 138 days.  If you use the last year's number of sales and compare it to the number of active listings, there are approximately 26.5 months of inventory on the market.  With this kind of inventory and competition with downtown listings, downward pressure on prices will continue. The National Association of Realtors indicates that six months of inventory is a balanced market.

Let's take a look at the housing market in Anderson Township and Newtown, Ohio...in Cincinnati's close-in suburbs.   We are grouping them together because they tend to attract the same group of buyers looking for similar properties in the Forest Hills School Distict.  Homes are from new construction to 60+ years old, with the price range varying from $80-1,000,000.

To give you prespective about the market, the graph shows sales for the past five years, through October 31, 2009.  You can easily see the increase in prices and the decrease as the recession strengthened.  Part of that price decrease can be attributed to a higher percentage of lower priced listings sold. 

With loans harder to acquire, higher priced homes listed at over $450,000 have struggled to find buyers, both because of the inability to sell the buyer's home and the difficulty in getting significant down payments. This brings down the median price.

Currently the area has 359 active listings on the market.  There are 76 pending sales.  Homes sold in an average of 88 days on the market (DOM). If you use the last year's number of sales and compare it to the number of active listings, there are approximately 8.5 months of inventory on the market.  Looking only at the number of pending sales to active listings, a more robust market would be anticipated. The National Association of Realtors indicates that six months of inventory is a balanced market.

Let's take a look at the housing market in Hyde Park, Oakley, Mt. Lookout and Columbia Tusculum, Ohio...in Cincinnati's close-in urban suburbs.   We are grouping them together because they tend to attract the same group of young professional buyers looking for similar properties.  The majority of the homes are 80+ years old, with the price range varying from $100-1,000,000.

To give you prespective about the market, the graph shows sales for the past five years, through October 31, 2009.  You can easily see the increase in prices and the decrease as the recession strengthened.  Part of that price decrease can be attributed to a higher percentage of lower priced listings sold. 

With loans harder to acquire, higher priced homes listed at over $450,000 have struggled to find buyers, both because of the inability to sell the buyer's home and the difficulty in getting significant down payments. The median price is lower as a result.

Currently the area has 368 active listings on the market.  There are 71 pending sales.  Homes sell in an average of 92 days on the market (DOM).  If you use the last year's number of sales and compare it to the number of active listings, there are approximately 7.8 months of inventory on the market.  Looking only at the number of pending sales to active listings, a more robust market would be anticipated. The National Association of Realtors indicates that six months of inventory is a balanced market.

Here's great news you need to hear! Whether you live in Hyde Park or Montgomery, Anderson Township or Mt Adams, home buying just became more appealing. Today, President Obama signed into law a Bill that extends the existing Homebuyer Tax Credit and expands benefits to a new group of buyers. 

First Time Homebuyers  As part of the economic stimulus package enacted earlier in 2009, first time homebuyers have been eligible for a tax credit of 10% of the cost of their new home up to $8000.  That program, scheduled to expire November 30, has been extended until April 30, 2010 for the purchase contract agreement and June 30, 2010 for closing.  It is estimated that over 1.4 million homebuyers have qualified for the credit at this point.

Current owners  Even more importantly, the program has been expanded to include owners who have occupied their homes at least five of the previous eight years.  These buyers will receive a $6500 tax credit. The new home does not need to cost more than the old house.  It does not include homes over $800,000 and it must be a principal residence (vacation home purchases are ineligible).

The bill also extends this credit to members of the military serving outside the United States for at least 90 days until June 30, 2011.

Higher Income Caps  Another provision of the Bill are income limits.  With today's signing, the new income limits become $125,000 for a single purchaser and $225,000 for married purchasers. You can get partial tax credits if you earn up to $20,000 more, but after that there is no credit.  Raising the income limits by $50,000 allows many more people to qualify.

As with all tax issues, there are various exceptions and only your tax advisor can evaluate your exact tax savings, but this may make selling or buying now, instead of waiting, much more appealing.  The National Association of Realtors has prepared an Issue Brief that you might find interesting.  There is lots more information to be found at Realtor.org.

Give us a call if you are ready to buy or if we can help your friends or family!

BusinessWeek.com, working with Cyberhomes, a real estate marketer identified the best 25 locales in the country where the price of homes is moderate and schools are A-rated.  According to their studies, buyers will pay a premium, work multiple jobs, pinch pennies and endure long commutes in order to have a home in a top-rated school district.

Top ranked schools chosen by the magazine were in communities in Vandergrift, Pa; Lake Worth, Fl; Middletown, Md; Longmont, Co; Rancho Santa Margarita, CA; Louisville, Co; Nassau-Suffolk, NY; Cincinnati; Nanuet, NY. and Clayton, NC

Specifically, the area of Cincinnati identified is zip code 45248.  The school district serving this population is Oak Hills, one of the Excellent rated schools by the State of Ohio..   In this neighborhood, the median home price is $155,000.

There are certainly other excellent-rated school districts in the Cincinnati area that have very reasonably priced homes.  Give Mary or Saralou a call to investigate other neighborhoods and how they compare to zip code 45248.