PARMA OH HOMES & REAL ESTATE 2016 YTD HOME SALES REPORT - SUMMER, 2016

Transcription

1 PARMA OH HOMES & REAL ESTATE 2016 YTD HOME SALES REPORT - SUMMER, 2016 Brought to you by LisaHumenik, RE /MAX Crossroads More news at : Facebook.com/AmazingNortheastOhioHomes IT S A GREAT TIME TO SELL A HOME! The Northeast Ohio real estate market has changed significantly in the past year turning to a s advantage in most suburbs. The number of homes available for sale has continued to decline while home sales are increasing which has helped boost sales prices and decrease market time for home sellers. With mortgage rates still at historic lows, a home buyers cost of purchasing a home is lower and more affordable than ever which is boosting demand. Homes that are in very good condition and that are priced and marketed effectively are selling for higher prices which is driving up home values. Home owners throughout the area are seeing their homes value and equity increase which is a welcome change from the past years. All and all.. It is a great year to move! YTD HOMES SALES ARE UP 26% OVER 2015 PARMA HOMES SOLD The number of homes sold YTD (Jan-May) in 2016 in Parma is up 26% over the same period last year (SEE CHART). A even bigger indicator of future sales is that Pending Sales Contracts are up over 33% from May last year. The pending contracts are pointing to an increasing sales trend. In May the Absorption Rate (percentage of homes going under contract Pending of those on the market) rose to 55%. The lower priced homes are going very quickly and there is less competition now from distressed inventory. The decline in homes for sale and concurrent increase in sales has created a tight market for buyers but a good market for home sellers (and owners waiting for their home value to increase). Given the sharp rise in sales, we would expect a slowdown as the summer season winds own and back-to-school time begins. PARMA HOMES PRICES ARE UP 11% PARMA HOME PRICES The Average Sale Price of Homes sold YTD (Jan-May) in 2016 in Parma rose to $100,000 up 11% over the same period last year (SEE CHART). The average List Price has increased by over 7% since 2015 to $111,000. In May (2016), the average For Sale price rose to $115,000, one of the highest averages in the past 5 years. The Average Sold price in May rose to $105,000, up 2.9% from May All in all, the Parma real estate prices have shown a dramatic recovery from 5 years ago and many home owners have recovered lost home equity from when the market hit lows several years back. The Average Sold Price per Square foot is a great indicator for the direction of property values. The May 2016 Average Sold Price per Square Foot was $76 up 8.6% from May 2015.

2 GREATER CLEVELAND YTD HOME SALES REPORT - SOUTHWEST SUBURBS WHERE HAVE ALL THE LISTINGS GONE? NUMBER OF HOMES FOR SALE (ACTIVE LISTINGS) AT 5 YEAR LOWS The inventory of homes For Sale in Parma (see CHART) has been consistently decreasing over the past 5 years. Even with the positive trends in 2015, we have yet to see the inventory of homes increase to levels higher than the past five years. At the start of June, we had 202 Single Family homes for sale in Parma compared to 558 in a 64% decrease! Today there is less than half as many homes for sale than in past years. The low supply of homes for sale has assisted in boosting sales prices and lowering the time it takes to sell a home. The reasons for the strong year-over-year home appreciation numbers we have been seeing is simple to explain: demand for housing is up and the supply of homes for sale has been at historic lows. DAYS ON MARKET DAYS ON MARKET (#DAYS TO SELL) IS DECREASING The number of days it takes to sell a home has been decreasing as the market has become tighter and inventory is low. The YTD Days on Market for Parma homes is averaging 77 days, compared to 86 days for Jan-May 2015, down 11%. This is also good news for Parma home sellers as they are able to enjoy a shorter market time. CDOM is Cumulative Days on Market and includes if a home was on the market and then expired and re-listed. Days on Market (DOM) is the number of days to sell in the current listing period. Today s CDPM in Parma is averaging 100 days from list date to close. MONTHS OF INVENTORY PARMA HOME INVENTORY AT 1.8 MONTHS The Average current market inventory in Parma is 1.8 months. Months of Inventory is typically expressed as If no other homes were listed as of the end of that month, and the current pace of sales prevailed, it would take X number of months to sell through the current inventory. Currently Parma is a s Market. Alternatively, it would take 1.8 months to sell all the current homes for sale if no other homes came on the market (at today s sales pace). * A Sellers Market is 3 months or less of inventory and a Buyers Market is more than 6 months of inventory.

3 2016 YTD HOME SALES REPORT CARD HOME SALES DATA COMPARISON OF SW SUBURBS CITY NUMBER OF HOMES FOR SALE (+/- % TO 2015) As of 6/1/16 CURRENT MONTHS OF INVENTORY* (Buyer or Seller s Market) 2016 AVG SOLD PRICE YTD AVG (% TO SAME PERIOD 2015) 2016 # YTD HOMES SOLD (% TO SAME PERIOD 2015) KEY MARKET TRENDS BEREA 46 ( - 40% ) 1.9 $136,000 (+ 14.8%) 100 (+23.5%) VERY LOW INVENTORY / STRONG SALES & PRICE APPRECIATION BROOK PARK 41 (+ 7.9%) 1.7 $103,000 (+13%) 92 (+16.5%) INCREASED HOME SALES & PRICE APPRECIATION BRUNSWICK 88 ( - 40% ) 1.4 $178,000 (+3.4%) 254 (+31%) VERY LOW INVENTORY / STRONG SALES LAKEWOOD 59 (- 18%) 1.3 $169,000 (+12.3%) 200 (+38%) STRONG GROWTH IN HOME SALES & PRICES MIDDLEBURG HTS 35 (+ 13%) 1.9 $150,000 (+5.8%) 58 (+32%) MODERATE PRICE & INVENTORY GROWTH NORTH OLMSTED 70 (-35%) 1.9 $134,000 (+1%) 143 (+9.2%) PRICING & SALES NUETRAL NORTH ROYALTON 74 (-32%) 2.5 $204,000 (-1.7%) 91 (+1%) PRICING & SALES NUETRAL OLMSTED FALLS / TOWNSHIP 83 (-20%) 3.1 NUETRAL $135,000 (-6.8%) 111 (+29%) HOMES SALES INCREASING BUT PRICING DECREASING PARMA 202 (- 32%) 1.8 $97,000 (+8%) 438 (+25.5%) GREAT MARKET RECOVERY - HOME PRICES AND SALES UP SUBSTANTIALLY PARMA HEIGHTS 40 (- 38%) 1.2 $99,000 (+6.5%) 98 (+24%) INCREASED HOME SALES & PRICE APPRECIATION ROCKY RIVER 44 (-33%) 1.5 $329,000 (+19%) 104 (+9.5%) STRONG PRICE APPRECIATION AND SALES STRONGSVILLE 130 (-37%) 2.1 $221,000 (+3.2%) 229 (+40.5%) VERY STRONG HOME SALES GROWTH WEST PARK 92 (-30%) 2.2 $93,000 (+12%) 202 (+19.5%) INCREASED HOME SALES & PRICE APPRECIATION ALL CUYAHOGA COUNTY 4,198 (-15.6%) 2.4 $143,000 (+4.2%) 4,986 (+17%) S MARKET. STRONG SALES & PRICE APPRECIATION. Months of Inventory ( based on Closed Sales) = the number of properties for sale divided by the number of properties sold. Three (3) months or less inventory is a Seller s Market. A Buyer s Market is greater than 6 months of Inventory. Balanced = 3 < 6 months inventory. Absorption Rate Percent of Homes for Sale that went under contract (Pending)

4 IMPORTANT INFO FOR HOME BUYERS Whether you are a first time home buyer or repeat buyer, the first step in the process is to get pre-qualified for a mortgage. This is necessary before you can approach a seller with an offer to purchase a home. Interest rates are projected to increase slightly over the course of The experts predict that home prices will continue to appreciate for the remainder of the year. If these trends continue, families could wind up paying considerably more for their home by waiting until later or next year. This year is a great year to make a move because of rising resale values and affordability to purchase (especially compared to renting). In many markets, rents are rising to unsustainable levels, reports the National Association of Realtors (NAR). "In the past five years, a typical rent rose 15% while the income of renters grew by only 11%.. Today buying is 38% cheaper than renting nationwide, and buying is cheaper than renting in all of the 100 largest metros. In the Cleveland & Akron metro areas it is 58% cheaper to buy verses rent. A great resource to compare what is a better for you is to visit Trulia s online Rent vs. Buy Calculator at: If you are thinking of buying a home, check out all the great local homes for sale at AmazingNorthestOhioHomes.com and call me for a lender referral and professional assistance at (440) HOME BUYER GRANTS & DOWN PAYMENT ASSISTANCE PROGRAMS There are several programs available for down payment and closing cost assistance to Northeast Ohio homebuyers who qualify. Here are details on a few of the available programs: NHS GREATER CLEVELAND - Eligible homebuyers can receive down payment assistance in the amount of up to 17% of the total transaction. The total calculates as purchase price plus 5% of purchase price for closing costs. The homebuyer will be responsible for a minimum of 3% of the total transaction contribution towards the purchase. The assistance is provided in the form of a deferred mortgage loan (50% forgiven after 10 yrs of occupancy). CLEVELAND CITYLIFT PROGRAM - Provides eligible homebuyers with $15,000 in down payment assistance on qualified properties in the City of Cleveland. Income restrictions apply. OHIO FINANCE AUTHORITY (OHFA) - Down Payment Assistance allows homebuyers to choose either 2.5% or 5% of the home's purchase price. Assistance can be applied toward your down payment, closing costs or other pre-closing expenses. Down payment assistance is forgiven after seven years. If you sell or refinance your home within seven years, you must repay all of the assistance provided. More info at

5 SELLING YOUR HOME If you are thinking of selling your home, it is very important to have a well qualified real estate professional guide you through the marketing, sales, and negotiations. As an example, my Smart Home Seller Marketing Program attracts MORE interested buyers to your home with today's most effective and state-of-the-art home marketing techniques with results that are Guaranteed! Here's a brief sample of marketing programs I use to bring my sellers the best price & offers: SPONSORED ONLINE ADVERTISING - Over 90% of buyers look for a home on the Internet first before requesting a showing for your home! My clients receive extensive online advertising 24x7 on REMAX.com, Realtor.com, Cleveland.com, Zillow.com, Trulia.com, and on over 500 affiliated internet websites. By showcasing your home, your home will appear highest in buyer searches, tripling the number of buyers who will see your home. WIDE ANGLE LENS PHOTOGRAPHY - Interior & exterior pictures taken with a wide-angle lens professional camera producing magazine quality pictures which showcase your home in the best way possible. Your 1st showing of your home is online, it is imperative that your home shows better than others VIDEO MARKETING - A Video of your home will be taken by a professional photographer. Your professionally produced video will include music and great photography highlighting your home s best features. Your 1st Showing is online, so when the buyer comes in person, they will come ready to buy. YOUR HOME S EXCLUSIVE WEBSITE - An exclusive website will be created just for Your Home, eg.. "YourAddress.com". The website for your home will allow your video, pictures, description, neighborhood information, and any other relevant info to be showcased in one place. Your home will have its own web address (URL) which buyers can use to search for your home directly on the internet, i.e. SOCIAL MEDIA ADVERTISING on Facebook, Instagram, and Twitter targeted at local buyers - creating a BUZZ around your listing! Paid social media promotion is a important element of a successful marketing plan. Sample promotions include: Facebook Promoted Posts and "Just Listed" Announcements of your home s listing and Video to targeted home buyers, Instagram photos shared on the web, and fan page promotion. SHORT TERM LISTING - You will not be asked to sign a long-term listing agreement. I am so sure you will be happy with my services and that your home will sell quickly, we can agree to a short-term agreement (as short as days) to get your home SOLD. Also, you can cancel at ANY time. CUSTOMER FEEDBACK by RealSatisfied - Your complete satisfaction is my #1 Priority. Every client is asked to complete a 3rd party independent post-sale customer satisfaction survey by RealSatisfied so they can tell us what they loved most and identify any ways we can get even better. 100% HAPPINESS GUARANTEE - You will LOVE our services and will want to tell your friends and family! However, if you change your mind for ANY reason, you can cancel your listing agreement anytime! SELLING BY OWNER? If you are currently trying to sell your home By Owner, my Smart Seller Program. You can continue to sell on your own AND I will market your home at the same time. A great program to bring you MORE offers! Here s how it works: 1. You continue to market your home to find a buyer by yourself By Owner. 2. Plus, you allow me to concurrently market your home to the 25K+ buyers online, in print, and on social media. I will provide you with a full fledge marketing program to sell your home for the highest price BEFORE you do. If I find the Buyer, you pay me the agreed Commission if you accept the offer on your home. In addition, the sales, showings, and closing process will be all handled for you from Listing to your home s Closing! If YOU find the Buyer, then you pay me NOTHING! We withdraw your MLS listing and you sell by Owner. No Strings Attached. No contractual obligation. Check out SmartSellerOffer.com.

6 WHAT IS YOUR HOME WORTH NOW? Home Values have CHANGED! As shown in this report s market data, home values and market conditions have changed over the past few years which has benefited homeowners (in many cases). The Good News is most likely your home may have gone up in value! If you would like a current professional estimate of what your home is worth now and/or neighborhood value report, please contact me at (440) or lisahumenik@remax.net. You can also visit NortheastOhioHomeValuation.com to request online. DIFFERENCE BETWEEN A BUYER OR S MARKET KNOW YOUR MARKET! Knowing the current conditions in your local market is imperative when selling your home (or looking to purchase). These factors will effect every aspect of the sales process. Several years ago there were an over supply of hoes on the market (and many distress properties). Today the distress sales are at a ten year low and home values have started to return to normal levels. All real estate is LOCAL. Your neighborhood values will differ from the national, regional, or county trends, If you are looking to buy or sell, review your neighborhood and local data carefully so you can optimize your purchase or sale to maximum financial benefit. If you d like a full market or neighborhood report for your city, contact me and I will be happy to provide it promptly. CHECK OUT OUR FACEBOOK PAGE! WE LOVE OUR AMAZING NORTHEAST OHIO HOMES! My Facebook Page features up-to-date news on the real estate market in Greater Cleveland and the latest HOT new home listings. All the newest home listings are featured and showcased to local home buyers. Check it out and LIKE my page and check it out at: CONTACT INFO Lisa Humenik RE/MAX Crossroads (440) lisahumenik@gmail.com LisaHumenik.com AmazingNortheastOhioHomes.com ( Facebook.com/AmazingNortheastOhioHomes Search AmazingNortheastOhioHomes.com