This site has been a bit neglected lately since the baby and spring market are here. Come and visit our Real Estate/Green Blog for Cincinnati Real Estate News and Cincinnati Green News!

I’m currently on Maternity leave and will be back to the blog in a few. Please check back later. Thanks!

Are you currently looking for a home and wanting to get in on that first time home buyer tax credit? Come and see all that the city of Norwood has to offer. We have 15 houses open from 12-4 this Saturday in every price range and area. Its a great way to see all that this community has to offer. There will be refreshments and prizes at most of the homes so be sure to check them all out.

I’d love to see you there! Simply click on the individual homes below to view the specifics.
Right now is a great time to buy in Norwood!

View Norwood Open House Tour - Oct 3, 2009 in a larger map

An end in site?

For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®. And Cincinnati is no exception. Locally home sales (for the second month in a row) – topped sales from a year ago. Realtors sold 1,984 homes in July compared to 1,866 the previous July, for a 6.3% gain. In June, the year-over-year improvement was 1.3%.

What you may ask is driving these sales? To me it seems to be the current 8,000 Federal tax incentive to first time home buyers and buyers who haven’t owned a home in 3 years. This tax credit which is set to expire Nov 30 really seems to be pushing buyers to act quickly. This in conjunction with the low interest rates we are seeing these days (which now average 5.45% for a 30-year fixed-rate loan, compared to 6.68% a year ago). Its a perfect opportunity for people to get into a home at an affordable price with affordable payments.

Here’s the data:

Previous Month Home Sales Comparison

Closings       Gross Volume       Average Price

July 2009           1,984             $325,871,651          $164,250

June 2009          1,965             $323,555,305          $164,659

Variance           +1.01%              +0.01%                   -.25%

June Monthly Home Sales

Closings        Gross Volume      Average Price

July 2009           1,984              $325,871,651         $164,250

July 2008           1,866              $337,803,003         $181,031

Variance          +6.32%                   -3.53%              -9.27%

Year-to-Date Home Sales

Closings        Gross Volume      Average Price

Jan-July 2009    10,455         $1,556,542,759          $148,880

Jan-July 2008    11,390         $1,913,760,065          $168,021

Variance            -8.21%             -18.67%                -11.39%

To Buy or Not to Buy, that is the question….

I come across this question all of the time, especially in this market. Many people I feel want to take advantage of the market, but they’re just not sure if NOW is the time or not. When is the perfect time to buy? We will only really know that once prices start going back up, then everyone will say “that was the time to do it.” However at that point, it will be too late. The market will have started to recover. There are signs pointing to recovery, but I think there is still a ways to go. Does that mean that buyers should sit back and just wait? I don’t think so. There are too many good incentives to let this market pass you buy.

Will home prices get better? Maybe, but maybe they won’t. If you read my last blog post you could see that home prices in Cincinnati dropped 13% on average when compared to last year. And as I mentioned in that post, as inventory shrinks and more demand is created, prices will start to climb back up. Get the prices now while we KNOW they are low. It’s the law of supply and demand.

Another great incentive are the low mortgage rates we are seeing right now. I don’t think that today’s first time home buyer really appreciates the low rates we’ve got going right now. They will all be in for a shock when they go to sell 5 years from now and may have to pay quite a bit more. Today’s rates, although they fluctuate a lot, they are still historically low, generally between 5-6%. Once everything starts to bounce back you can pretty much kiss these sweet deals good bye…

If you’re a first time home buyer you may want to finally jump on the home buying band wagon. Your 8k tax incentive is up Nov 30, 2009. That means you have to CLOSE by Nov 30. The clock is ticking my friends… who is eligible? Anyone who hasn’t owned a home in the past 3 years if they meet income limits single buyers, $75,000 a year; married couples $150,000. The credit decreases for single buyers earning between $75,000 and $95,000, and between $150,000 and $170,000 for home buyers filing jointly.

Call me today if you have any questions on purchasing a home in Cincinnati! I’d love to help.<-->

We could all use some good news right?  Well Cincinnati, here you go - Home sales are up for the month of June when compared with June of last year.  According to a press release by the Cincinnati Area Board of Realtors ” Realtors sold 1,955 homes last month compared to 1,940 one year earlier. June sales were 16.6% higher than May, which recorded 1,677 sales.”    Paul Jacobs, president of the Cincinnati Area Board of Realtors, cited these three factors to explain the increase in June sales (closings)-  all 3 I tend to agree with and see them as driving factors in my increased business over the past few months…
1) Low home mortgage interest rates - June average was  5.62%. That compares to 6.50% one year ago. It is now 5.51%
2) Buyers realizing that home prices are at bargain levels - Depending on the neighborhood, a lot of homes are going for less than what the owners paid for them just a few years ago.
3) Stronger utilization of the $8,000 first-time home buyer’s tax credit - First time home buyers are feeling the crunch and know that time is of the essence to utilize this by Nov 1, 2009.

Before you go out and celebrate that the housing market is recovering and this is the beginning of the end of our recession - its not all sunshine and flowers out there.   Home prices for Cincinnati, overall, were 13% lower than June 2008.   This once again is very dependent upon the neighborhood.  Many of the areas I work in, haven’t seen that much of a decrease and some haven’t seen any decrease at all.  It depends on the neighborhood and the supply of homes available to the buyers out there.  Our local inventory is also shrinking - which means we are headed to a more ’stable market’ where the supply meets the demand (a balanced market is about 6 months of home sales) .  We moved to a market of about 7.19 months in June. That’s down from 8.47 months a year ago.  (A lower number means greater demand for current inventory.)

Overall, things seem to be starting to move.  At least in the lower price end of homes 100-200 range.  Once this inventory gets eaten up, we should hopefully start to see the higher priced homes move a lot quicker as well.

Here are some June stats for your viewing pleasure (taken directly from the CABR press release):

Previous Month Home Sales Comparison
Closings      Gross Volume      Average Price
June 2009                  1,955         $321,500,105         $164,450
May 2009                    1,677       $260,491,965          $155,332
Variance    +16.58%         +23.42%                   +5.87%
June Monthly Home Sales
Closings      Gross Volume      Average Price
June 2009                 1,955          $321,500,105        $164,450
June 2008                 1,940          $367,382,301       $189,372
Variance     +.77%                 -12.49%                -13.16%
Year-to-Date Home Sales
Closings      Gross Volume      Average Price
Jan-June 2009        8,460       $1,228,397,263       $145,201
Jan-June 2008        9,524        $1,575,957,062      $165,472
Variance    -11.17%               -22.05%                -12.25%

Hello my readers.  I do want to apologize for the 2 month hiatus that I’ve taken.  I should have warned some of you, but I got a bit of blogger burn out…  Hopefully, some of you have been reading my tweets (if you’re not following me on twitter, you should be http://twitter.com/jamistutzman) and you know that homes are selling and that I’m keeping VERY busy.

What?!? some of you may be saying.  Homes are selling??  Yup! its true.  As of right now in Hamilton County alone there are 1341 houses that are pending in the MLS.  Thats fantastic!! Who is buying?  It mainly seems to be the first time home buyers, the people who are under the 250k range.  They’re coming out in force to get the 8k tax incentive.  If you haven’t owned a house in 3 years, you’d be eligible for it as well.  Ask me for more details.

Does this mean that the housing market is in the clear?  Not yet, but it shows that we are on our way to recovery.  I have a feeling its going to be a long process, but it looks to be headed in an upward direction.  Once these first time home buyers start buying up the inventory, the higher priced houses will start to go.  Many people above the 300k mark need to wait for their house to sell before they can buy up.  Its frustrating for those sellers, but they need to either drop their price or just be patient.  We are lucky to be in Cincinnati, we didn’t see the extreme highs of the bubble and therefore we won’t see the extreme lows of the downward turn.  Don’t think that every seller out there is desperate and every home is over priced.  Many homes that are coming up on the market are priced very well for the current day and are actually selling pretty fast!

So, now is the time to get out there and shop!  If you have a first time home buyer house and you’re looking to upgrade, don’t be afraid to try and sell it.  Afterall, if you take a little hit on the selling side, you will probably make up for it on the buying side.

What goes down, must go up. Right?  At least thats how things in general play out in Life.  So why shouldn’t real estate be any exception?  It isn’t. Does that mean its coming back… hmmm not sure yet.  Have we reached the bottom and are at least stabilizing?  I think maybe so or at least we’re close.

I recently read an article on realitytimes.com where Dr. Mark Zandi, chief economist for Moody’s Economy.com, surprised analysts by announcing that “the bottom of the housing downturn is in sight for the nation.”   I had heard whispers of this through some of my out of state colleagues, that some of the hardest hit areas are starting to see some comeback and stabilization.  This is great news!  Why? Because theoretically what was hit the hardest first should also then be the first to start to recover.

Well, I think the key word in Marks quote is that the bottom is in “sight.” Not that we are there yet.  But before that much-desired recovery can take place, the economists warn that there will be more pain. Home values in some of the nation’s hardest-hit markets — in particular Florida, California, Nevada and Arizona — will continue to see prices plunge. In some of the worst-hit places, the peak-to-trough percentage losses will soar as high as 70%. Of the 381 metro areas that the firm looked into, it estimates that 100 will experience peak-to-trough declines of 20% or more. The bright spots on the map — the 42 metro areas that are expected to see a decline of less than 1% — will mainly be in the South.  Of course, job loss will also factor into the ability of some metro areas to improve. Only states that were somewhat immune to the housing boom at the beginning of the decade should expect a quicker recovery.

This is not so good  news for the hardest hit areas, but is somewhat a  sigh of relief for us in Cincinnati. We didn’t see incredibly high home prices and therfore we won’t see ours plunge out of control either.  Housing is still very affordable in Cincinnati.  Our home prices continue to stabilize and more and more homes are starting to come back up on the market.  First time home buyers are ready to use their 8k tax credit and are out searching for the right house.  Our economy looks relatively stable when compared to other parts.

I think its a great time to buy and those who don’t will be kicking themselves in years to come.

If you haven’t tried it, you must.  It is my new favorite ‘guilt-free’ addiction, its called Yagööt.  Yes, its in Norwood so maybe I like it even a little bit better.  Well, tomorrow is your chance to try out the new flavor…. *STRAWBERRY*for free with a coupon.

Some of you may think its a Pinkberry knock-off, but our very own Busken Bakery had this recipe since 1977! here is an excerpt from their history:

“Busken Bakery, the creators of Yagööt, were whirling up their first serving of frozen yogurt in — believe it or not — 1977. Soon Busken Yogurt Salads quickly became their most popular lunchtime item. Even then, people working downtown went a little gaga for this cool, healthy, live-active-culture treat.

So what happened? As fate would have it, the dairy that was making the yogurt went out of business. And the Busken Yogurt Salad sensation of the 70s and 80s lived only in the memories of wistful Cincinnatians pining for the vibrant goodness of days gone by.

Well, that is until 2008 when the Buskens redoubled their efforts to rewrite history. They found the old formula, worked with a new dairy to tweak out the perfect balance of rich yogurt tart to smiling sweet — in a frozen concoction that’s as refreshing and healthy as it was 30 some years ago. The original tingly-tart flavor was reborn. Only this time, accompanied by a scintillating suite of specially selected toppings. And, of course, a slightly new attitude.”

While original is still my favorite and probably always will be, I’m happy to taste this new spring flavor.

I hope you enjoy it as much as I do.  Don’t forget your coupon.

While selling your home right now may not be something that everyone just jumps at the chance to do. It may be in your best interest, if you want to take advantage of the great buying market thats out there.  While most sellers right now have become ‘realistic’ as to where the market is at, they still need to understand a few things.  Selling a home in a declining market starts with a proper attitude and finding the right agent who is optimistic and knows the right sales techniques in this tough market.  Its an unprecedented time we are in right now and it calls for creative aggressive agents.

1. The key to successful selling in a ‘declining market’ is pricing your home at today’s market value, having your home in tip-top condition and being able to work with a prospective buyer on financing needs and terms. Don’t let your ego or pride get in the way when determining a price for your home. And remember the buyers bank is going to need to appraise it at the agreed on purchase price.  These days appraisals can kill deals.  So be realistic.

2. Put your buyer hat on when you look at your own home.  Often times we are more critical of other peoples homes than we are of our own.  I tell my sellers “this is not your home any more, its an item for sale and we have to treat it objectively.” More easily said than done.  Take a leisurely walk through your home jotting down the little things you might do to spruce it up. New carpeting, a fresh coat of paint, new light fixtures, mirrors, etc., are items that will give your home more emotional appeal and does not cost too much. Put away the clutter throughout the home and organize your closets! Rooms free of clutter will appear bigger and the new buyer can visually ‘move into’ your home much easier. Remember, new buyers are not buying your furniture. Don’t forget about the outside! Curb appeal to a new buyer is a very important and is many-times overlooked.

3. Finally, be patient. The real estate market has changed considerably since the last run-up where homes sold in hours or days. We are now experiencing a more “normal market” where homes take 90-120 days to sell. Remember, inventories are at an all-time high right now. Bank foreclosures are all around you and many buyers will have difficulty qualifying for a new loan. Lenders also have very strict guidelines now and consumer confidence is very low. Allowing for a normal marketing period will do a lot to alleviate your impatience when you have few showings of your home or a lack of offers to review.

Contrary to popular belief, buyer are out there and they’re waiting to buy.  They’re the first time home buyers.  Once they start buying, it will be a ‘trickle up’ effect and will reach the upper price ranges.  If you’ve got a home that is perfect for a first time home buyer and your not sure if it could sell, give me a call. I’d love to give you my no obligation opinion of condition and price.  Take advantage of this buyers market.  You’ll be happy in 5 years that you did.