Median Home Prices Have Declined. Buyer, get your pre-approvals!

Click on the link below to see the story about how the median price for non-foreclosed homes has declined 4% in Cuyahoga County.

http://blog.cleveland.com/metro/2009/01/cuyahoga_countys_median_price.html

Buyers, make a decent offer so as not to alienate the seller. Trying to time the market and waiting for the "bottom" doesn't work because when you are sure the market has bottomed, prices have already risen and you miss your chance at buying at the "bottom". Prices are substantially reduced already and you can rest assured that you are getting a good discount on most homes! Stay tuned for pending legislation that could provide more tax credits for first-time home buyers!

Heights Real Estate Year End Report

Here is my end of year real estate report for the Heights. These are the latest statistics extracted from the Northern Ohio Multiple Listing Service:

These figures represent the MONTHLY average of sold homes in the last three months...

Cleveland Heights- total for sale at present- 433

Solds/month Absorption Rate/month

$0-$99,999
26 5.9%

$100,000-$199,999
10 2.2%

$200,000-$299,000
2 .4%

$300,000-$399,999
2 .4%

$400,000+
.33 (1 in 3 months) .1%

University Heights- total for sale at present- 125

$0-$99,999
8 6%

$100,000-$199,999
3 2%

$200,000-$299,999
.33 0.3%

$300,000-$399,999
0 0%

$400,000+
0 0%

Shaker Heights- for sale at present- 286

$0-$99,999
10 3.5%

$100,000-$199,999
7 2.6%

$200,000-$299,999
4 1.5%

$300,000-$399,999
2 0.7%

$400,000-$499,999
1 0.3%

$500,000+
1 0.5%

Clearly homes below $100,000 are selling the quickest with homes ranging in the $100,000-$200,000 following behind.

Price trends- comparing the last three months with the July-August-September period

Cleveland Heights- down 2%
University Heights- down 42% (ouch...)
Shaker Heights- down 23%

Obviously Cleveland Heights is holding up better or perhaps its biggest price drops occured earlier. That would require more research.

If you are a buyer, this is a great time to purchase a house. Prices have come way down and mortgage rates are as low as they ever have been. As you can see, there are 844 homes for sale in the Heights so there is a wide selection of properties to choose from!

If you are selling, contact a realtor regarding advice on how to prepare your home to put it in it's best light, thereby increasing your chance of selling it in this incredibly competitive market. Don't forget- EVEN IN THIS MARKET PEOPLE NEED TO SELL AND BUY HOMES!

Due to low mortgage rates, it's a great time to refinance your present mortgage if you have one. Whether is purchasing or refinancng, contact your realtor for more information!

Let's look forward to better days ahead with a positive attitude and I wish you a very Happy New Year!!

Scott

Howard Hanna Smythe Cramer-Realty One Merger

It's been a busy few weeks since Howard Hanna Smythe Cramer and Realty One merged into Howard Hanna Realty. This merger brings the strongest aspects of each company under one roof with a combined total of 2400 agents and the lion's share of the Cleveland market. I'm very happy to be a Howard Hanna agent and I'm looking forward to an improving real estate market in the next few months! The old Realty One office on Warrensville is now the Shaker Heights-Gold office of Howard Hanna. It will probably take a year or so to decide which offices will merge, close, or move. For now I'm still at 20515 Shaker Blvd. in Shaker Heights.

I hope your Thanksgiving was a joyous one with family and friends!

To see my listings go to www.scotthaigh.howardhanna.com or www.scotthaigh.com

GOOD NEWS FOR FIRST-TIME HOME BUYERS!!

On July 30, 2008, President Bush signed H.R. 3221, the Housing and Economic Recovery Act of 2008, a major housing bill providing a tax credit up to $7500 for first-time home buyers. This is for purchases between April 9, 2008 and July 1, 2009. Note that this is a tax CREDIT, not a deduction. Anyone who has who has not had an ownership interest in a principal residence in the previous three years is eligible, up to certain income limits. Those limits are $75,000 for single tax filers and $150,000 for joint filers. The credit is 10% of the purchase price of the home with a maximum credit of $7500. For example, if you purchased a home for $65,000 your tax credit would be $6500. This amount would apply both to single and married taxpayers. If your income exceeds the limits then your credit would be reduced by a formula set by statute. Call me for details. If income exceeds $95,000 (for singles) or $170,000 (for joint returns) then no credit will be allowed. Also, people who obtain financing through mortgage revenue bond (i.e. through a tax-exempt bond-related program offered by a state housing agency) are not eligible. Here’s the rub… this tax incentive must be paid back over 15 years. I.E. 6.67% of the credit must be paid back each year. For a taxpayer receiving the full $7500 credit the yearly payback amount would be $502.50.

If you receive the full $7500 credit and your tax bill is less than $7500, would receive a refund. For example, if your tax bill was $6000 and you purchased a home for $75,000 or more you would receive a refund of $1500.

The only down side of this legislation is that this credit will not be useable as part of a downpayment, since you cannot claim the credit until you file your 2008 taxes in 2009, and the credit is only available for purchases up to July 1, 2009 (That means title transfers before July 1, 2009. So as a practical matter unless you get a tax refund in time to apply it to a downpayment and close on a purchase before July 1st, you won’t be able to use the credit for a downpayment.)

On balance I think this is a wonderful help to first-time buyers and it should be taken advantage of. Ask your realtor about it!

Tips on finding lender..

Here is some good advice when searching for a mortgage....

http://www.realliving.com/Data/1/extra/5_steps_lender.pdf

Cleveland Heights Sales Trends

Here is a summary of the absorption rates of homes for sale in Cleveland Heights for June, July, and August (up to August 24) These figures are based on data from the local MLS
JUNE
Less than $100,000- 53%
$100,000-200,000- 20%
$200,000-$300,000- 14%
$300,000+ 23%
JULY
Less than $100,000- 55%
$100,000-200,000- 14%
$200,000-$300,000- 11%
$300,000+ 18%
AUGUST
Less than $100,000- 52%
$100,000-200,000- 8%
$200,000-$300,000- 13%
$300,000+ 8%
Conclusion: the fastest selling homes are those under $100,000. June was the strongest month for sales, as expected, and then July and August saw a significant drop in the absorbtion rate for homes over $100,000, while homes under $100,000 continued to experience good sales into August. Sold price per sq. ft. declined significantly over the three summer months except in the $300,000+ category, meaning the more expensives home seem to be holding their value.
Days on Market
This changed very little over the three months and averaged as follows:
Under $100,000 - 89 days
$100,000-$200,000- 102 days
$200,000-$300,000- 116 days
$300,000+ 149 days

Scott Haigh, Realty One

Cleveland a smash at the Salzburg Festival!

The past 17 days here have been really special! Not only is this a beautiful city surrounding by picturesque mountains, the Cleveland Orchestra's performance here have been truly great. The critics have been united in their highest praise for the orchestra and it's Music Director, Franz-Welser Most. Simply put, we are the "hit" of the festival. The opera, Dvorak's "Rusalka", was exquisite with unbelievable singing. Last night a post-concert dinner reception was held in St. Peter's Keller, which is a restaurant founded in the 800's. It was quite lavish and the food delicious. You can imagine the sense of history here since Mozart and Herbert von Karajan were born here and you can tour their childhood homes. Johann Doppler of the famous Doppler Effect was also born here.

A few days ago I went on a very physical 5-hour hike on top of Untersberg Mountain, outside of town here. The next day my legs were SO SORE, but it was worth the views from 6000 feet up! Tomorrow we move on to Linz for a few days and then on to Lucerne. Make a special effort to visit Salzburg-- it's a really neat place.

More later....