Sales are brisk in the Cleveland Hts. office of Howard Hanna

Just in case you read too much bad news about real estate in the national media, consider this:
The Howard Hanna Cleveland Heights office ended up with 52 listings and 63 sales for the month versus 55 listings and 58 sales in May 2008. Listings were fewer and sales were UP. Stop by our office at the corner of Cedar Rd. and Lennox to see what's happening!

Historical Information on Cleveland Heights

If you want to check out some really interesting photos of Cleveland Heights' history go the Cleveland Heights Historical Society. There are photos there I had never seen before along with historic postcards about Cleveland Heights. This is a VERY COOL site.

www.chhistory.org

Finally, some positive news in the real estate market...

Despite the continuous bad news about real estate, there are some bright spots that may indicate a turn around in the not too distant future.. Check out the CNN article..

http://money.cnn.com/2009/05/04/real_estate/March_pending_home_sales/index.htm?postversion=2009050413

Enjoy spring!

Eco-Friendly Event in Beachwood...

For those interested in eco-friendly products and services, I suggest attending the "Green Dream" 2nd Annual Eco-Friendly Showcase on Friday, April 17th at the Beachwood Community Center, 25325 Fairmount Boulevard in Beachwood. The hours are 1-7pm and it's FREE! There will over 70 eco-friendly businesses represented there.

Cleveland Heights Home Sales Rise during last 90 days

Sales of Cleveland Heights have risen in the last three month compared with the previous three months. Of those single family homes that sold in the last three months, all of them were $55,000 or less, so this may reflect bank-owned homes, foreclosure, distressed properties, or homes whose owners just had to lower the price to get them sold. In any case 131 homes were sold or pending in the last 90 days compared to 121 sold or pending for the previous three months. The down side of this is that there were 410 homes for sale during the last 90 days and only 89 for sale the previous 90 days. This may reflect people taking homes off the market for the Christmas holiday. So, more homes were sold but more came on the market the last three months, so the absorption rate has dropped for single family homes, from 45% to 11%. The same goes for condomiums. We had more sales in the last three months- 9 units compared to 3 the previous 3 months, but there were 67 for sale the last 90 days compared to 12 the previous three months. Thus the absorption rate dropped from 8% to 4%

The figures:

Last 90 days:

Single Family Homes

410 for sale
131 sold or pending (43.67/month)
Monthly Absorption Rate = 11%

Condominiums

67 for sale
9 sold or pending (3/month)
Monthly Absorption Rate = 4%

Previous 90 days (previous 4-6 months)

89 for sale
121 sold or pending (40.33/month)
Monthly Absorption Rate = 45%

Condominiums

12 for sale
3 sold or pending (1/month)
Monthly Absorption Rate = 8%

It seems that the net effect is that we did not really increase the rate at which homes are selling, so we're not out of the woods yet, but we are gradually working through the inventory. Let's see what the spring market of 2009 brings us!

New Tax Credit for First-Time Home Buyers

As part of the American Recovery and Reinvestment Act, Congress is now giving a substantial gift to first-time home buyers! If you purchase a home between now and December 1st, 2009 you will receive a tax credit against your income tax due in the amount of 10% of the purchase price of the home. The maximum credit available is $8,000. The biggest change from the previous $7500 tax credit is that the new credit DOES NOT have to be repaid to Uncle Sam! The income limits are $75,000 adjusted gross income for individuals and $150,000 for those filing jointly. The credit is reduced above these limits until they are eliminated for those filing as an individuals whose adjusted gross income is $95,000 or over and $170,000 for those filing jointly. You also need to keep the home three years or you will be subject to recapture on the tax credit.

One of my clients just bought a home and will have a $8000 reduction of his 2009 income taxes. He may even be due a refund! What a help in buying new carpets, decorating, or paying off Mom and Dad for helping with closing costs or the down payment!! This is a boon to buyers and seller alike and I think it will go a long in helping to reduce housing inventory, and therefore reducing the downward pressure on home prices

Call me if you have any questions about this change in the law. REMEMBER, it is only available until December 1, 2009.

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!