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December Home Sales Up; 2011 Sales At 99.36% of 2010

January 23, 2012

From the Cincinnati Area Board of Realtors:

How are 2011 Cincinnati home sales similar to P&G’s Ivory soap TV commercials several years ago?  Both reported favorably over 99%.

 The commercials touted Ivory soap at 99.44% pure.  Local home sales in 2011, likewise, hit 99.36% in total volume vs. 2010 sales. 

 Home sales in December, for the sixth month in a row, continued a positive trend with 1,294 units — up 7.65% over December 2010.  Annually, there were 16,829 sales in 2011 compared to 16,937 in 2010.  Second half sales of 2011 were positive, making up for a difficult first half.

 Last month’s average price was $146,259, compared to a year ago of $160,295.  The average price for 2011 was $151,384 compared to $158,560 in 2010.

 “We had an unbelievable run the second half of this year amidst unfavorable economic news,” said Tom Hasselbeck, president of the Cincinnati Area Board of Realtors.  “The sales performance in the greater Cincinnati market proves that buyers are finding great values and not waiting to make their purchase.  As long as interest rates remain low and the job market stabilizes, now is a superb time to buy as the economy continues to improve.” 

 Today, the average interest rate in Cincinnati is 3.91% for a 30-year fixed rate mortgage.  Nationally, the average interest rate is 4.18%.  Many experts claim that the low interest rates will not last. 

 The Cincinnati area housing market has 8 months of available inventory compared to nearly 10.5 months a year ago.  A continued decrease in inventory would result in a greater demand, possibly leading to an increase in the average sale prices of homes.  The National Association of Realtors claims that an inventory level of less than 6 months leans toward a “seller’s market,” where the price of homes could rise. 

 “So if you are in the market to buy a home, don’t wait,” says Hasselbeck.  “Take advantage of the affordable homes in the Cincinnati market.”

  Summary of Single Family and Condominium SalesMultiple Listing Service of Greater CincinnatiCincinnati Area Board of Realtors®

 December Home Sales

Closings          Gross Volume         Average Price          

December 2011                      1,294          $189,258,762              $146,259

December 2010                     1,202          $192,674,303              $160,295        

Variance                                  + 7.65%                    – 1.77%                – 8.76%

 Yearly Home Sales

                                                   Closings          Gross Volume          Average Price         

Jan-Dec 2011                        16,829          $2,547,641,495             $151,384                

Jan-Dec 2010                       16,937          $2,685,525,814            $158,560        

Variance                                  – 0.64%                      - 5.13%                 – 4.53%

 Nationwide, December home sales were up 5.0% from November on a seasonally

adjusted basis and up 3.6% from December 2010. 

Interested in previous month’s press releases you can see many of them here, here, and here.

Survey Shows Baby Boomers’ Potential Impact on the Next Generation of Home Buyers

December 19, 2011

A national survey commissioned by Better Homes and Gardens® Real Estate has found that baby boomers are part of a growing trend in which they are helping their children or grandchildren become home owners. According to the survey, one in five baby boomers has already gifted, loaned or co-signed a loan to support their children or grandchildren in purchasing a home, and more than two-thirds of boomers want to provide this type of support in the future.

I have seen this first hand in my transactions.  I can think of at least half a dozen sales with this type of support/help over the past year or so.  In fact, I recently had an adorable young couple who had just moved back to the area and were still in the process of finding and starting new jobs. With a young child and another on the way, living in their parents’ basement wasn’t ideal but navigating though the lending process with new jobs was difficult.  So the in-laws were able and willing to loan them the money to purchase the perfect house.  The plan, of course, is for them to get their own loan as soon as they can but in the meantime this solution worked great for everyone involved. 

Aside from the good investment rationale, baby boomer respondents in the survey cited that the willingness to provide financial support to their children and/or grandchildren was out of love. By providing financial support to assist in the home buying process, respondents stated that they could ensure their children and/or grandchildren would benefit from their estate and fulfill a large part of achieving the American dream.

Key findings from the Better Homes and Gardens Real Estate baby boomer survey include:

  • One in five baby boomers have already gifted, loaned or co-signed a loan to their children or grandchildren for a down payment on a home.
  • Looking ahead, one in 10 baby boomers say they will “definitely” provide their children or grandchildren with financial support for a down payment on a home, and at least half hope to do so.
  • In total, more than two-thirds (68%) of all baby boomers said they want to provide future financial support for their children or grandchildren to purchase a home.
  • Those who have already provided past support are also most confident that they will do so again.
  • Highest interest in providing support is reported among younger (age 45-54), more affluent (household income of $75,000+) baby boomers who have at least one adult child (age 18-34).
  • Baby boomers are driven to provide financial support primarily by their belief in the overall investment value for them and/or their children or grandchildren, and the role homeownership plays in fulfilling the American dream.
  • Older (age 55+) and more affluent ($100,000+ household income) baby boomers are more likely than their younger or less affluent counterparts to have previously provided financial support.
  • Across prior support and future interest, baby boomers show more interest in gifting or loaning money; they are least interested in co-signing loans.

What about you?  Would you consider helping your children or grandchildren buy a home?  Or have you been helped by a parent or grandparent?

To read the full article go here

When Snow Removal from Your Roof is Necessary, Plus Safety Tips

December 10, 2011

Snow removal from roofs is rarely necessary, but when it is, it’s a dangerous job. Tips and advice about what to do when your roof is loaded with snow.

If you’ve had a big snowfall in your area and you’re wondering if your roof  can stand the extra weight, don’t reach for a ladder and a shovel — reach for  the telephone. Calling in a professional to remove ice and snow from your roof  is the smartest — and safest — option.

When (if ever) is it necessary?
The critical factor  in determining excessive snow loads on your roof isn’t the depth of the snow,  it’s the weight, says home improvement expert Jon Eakes.
That’s because wet snow is considerably heavier than dry, fluffy snow.  In fact, 6 inches of wet snow is equal to the weight of about 38 inches of dry  snow.
The good news is that residential roofs are required by building  codes to withstand the heaviest snows for that particular part of the  country.
“Theoretically, if your roof is built to code, it’s built to  support more than the normal load of snow and ice,” says Eakes.
You can  determine the type of snow you’re getting simply by hefting a few shovelfuls — you should be able to quickly tell if the current snowfall is wet or dry. Local winter  storm weather forecasts should alert you to the possibility that snow loads  are becoming excessive and a threat to your roof.

How do I know  there’s a problem?
An indication that the accumulated snow load  is becoming excessive is when doors on interior walls begin to stick. That  signals there’s enough weight on the center structure of the house to distort  the door frame.
Ignore doors on exterior walls but check interior doors  leading to second-floor bedrooms, closets, and attics  in the center of your home. Also, examine the drywall or plaster around the  frames of these doors for visible cracks.
Homes that are most  susceptible to roof cave-ins are those that underwent un-permitted renovations.  The improper removal of interior load-bearing walls is often responsible for  catastrophic roof collapses.

The snow load seems excessive, now  what?
Most home roofs aren’t readily accessible, making the job  dangerous for do-it-yourselfers.
“People die every year just climbing  ladders,” Eakes points out. “Add ice and snow and you’re really asking for  trouble.”
Instead, call a professional snow removal contractor to safely  do the job. Check to make sure they are licensed and insured — that immediately  sets them apart from inexperienced competitors.
Pro crews attack snow  removal with special gear, including sturdy extension ladders, properly anchored  safety harnesses, and special snow and ice-removal tools. Expect to pay $250 to  $500 for most jobs.
Don’t expect (or demand) a bone-dry roof at job’s  end. The goal is to remove “excessive” weight as opposed to all weight. Plus,  any attempt to completely remove the bottom layer of ice will almost always  result in irreparable damage to your roofing.

The  do-it-yourself option
If you have a small, one-story bungalow  where the roof is just off the ground, taking matters into one’s own hands may  be safe — if you can work entirely from the ground and have the right  tools.
Long-handled snow rakes work great on freshly fallen snow,  and at $45 they are relatively affordable. Look for models with sturdy  telescoping handles and built-in rollers, which keep the blade safely above the  shingles.
Other versions work by releasing the snow from underneath.  These models slide between the roof and snow, allowing gravity and the snow’s  own weight to do most of the work. Models range from $50 to $125 or more for  unique systems utilizing nylon sheeting. Again, search out models with sturdy  adjustable handles.
Eakes offers a common sense word of caution about all  these snow removal tools. “They tend to work their best on light, fluffy snow — the kind that probably doesn’t need to be removed in the first  place.”
You’ll need to anticipate where the snow and ice will fall as you  pull it off your roof — you won’t want to pull a load of heavy, wet snow down on  top of yourself or any helpers.
Remember, the goal isn’t to remove all  visible snow and ice, but rather just enough to relieve the excessive load on  the roof.

No Mothers-In-Law Allowed: The 7 Craziest Local Laws and HOA Rules

December 7, 2011

Get up to speed with the most outrageous laws and homeowners association rules.

Even celebrities such as Earvin “Magic” Johnson and Samuel L. Jackson can be at odds with an HOA. Here are seven crazy examples of laws and HOA rules:

1. Can’t park your car in your own driveway.

In Odessa, Fla., a resident was fined by his board for parking his pickup truck in his own driveway because it wouldn’t fit in his garage. Not our problem, the HOA basically told him before slapping him with a lawsuit. After a protracted legal battle, he has since won the right to park his car, but only after two years and $200,000 in legal fees.

2. Don’t plant too many roses.

While foreclosure is an increasingly real threat to homeowners, few expect to lose their house based on gardening infractions. But that’s exactly what happened to a Rancho Santa Fe, Calif., resident who planted too many roses on his property. After $70,000 in fees, he lost his legal battle against the HOA and ultimately lost his home to the flower debacle.

3. Indoor drying only.

As seen in a Colbert Report expose, a Bend, Oregon, resident was shocked by her HOA’s rejection of her outdoor clothesline. Her natural drying method was dubbed a hazard, and they began levying fines that totaled nearly $1,000. She eventually took down the offending line, even after the Right 2 Dry movement got behind her.

4. No mothers-in-laws allowed.

If you’re a married man in Iowa, the government grants you a special privilege: you’re allowed to bar your mother-in-law from your home. While certainly useful to men trying to ditch their spouse’s mom, this law does not extend to women.

5. Only use sanctioned paint.

What appears to be an inoffensive pale blue house has caused a stir recently in one Georgia neighborhood. Unaware of his HOA’s rules, a homeowner painted his house before having the color officially approved by his board. And with a $25 per day fee levied every day his house bares the offending hue, he’s already racked up $6,800 in fines on top of legal fees.

6. No service dog for the hearing impaired.

A Fort Collins, Colo., HOA fined a hearing-impaired resident for keeping Pookee, her Pomeranian service dog. The HOA even threatened to put a lien on the property. All this despite the fact that Fair Housing Act requires condo and home owner associations to make reasonable accommodations in their procedures and rules to allow a person with disability to reside in a unit. This includes allowing service animals.

Have an issue related to service animal? Contact your local HUD office or local or state human rights agency.

7. Don’t use ‘inconsistent’ shingles.

As if it wasn’t tragedy enough when a plane fell out of the sky destroying a Sanford, Fla., man’s home, his HOA then challenged his rebuilding efforts. It threatened litigation because the shingles and elevation in his new house’s plans didn’t match his neighbors’.

Bending the rules

If you fight the law, you may lose. But there are ways to work with the restrictions of a HOA and still get your way. The first line of defense is to make sure you understand the HOA or condo association rules before you purchase the property.

If, after you move in, you’d like your home’s appearance to differ from that of your neighbors, you’ll need to submit a “variance” form of request. This request can be accepted or rejected at the board’s will, so it’s good to alert them early in your planning process. One tip to gain HOA support? Understand the challenges and perspective of HOAs, follow the rules to a tee, and offer to help them gain community support for their initiatives. Maybe even run for office. If you can’t beat ‘em, you might as well join ‘em.
What’s the strangest local government or HOA rule you’ve ever heard of?

 

photo taken from here

Homearama Site for 2012 Announced

November 28, 2011

Homearama 2012 will be held at Willows Bend in Clermont County for 2012. This is the first Homearama to be held in Clermont County and will be the 50th anniversary year for the show.

The home show is set to take place from June 9 -24, 2012. Homes will be priced from $600,000 – $1,000,000+. Three of the seven homes to be built have already been sold. Groundbreaking will take place on November 17, 2011 at the site.

Dan Dressman, executive director of the Home Builders Association of Greater Cincinnati reports that Willows Bend offers a beautiful site with mature, stately trees and grassy meadows.

Have you been to Homearama in the past?  I always love to see the crazy, over the top basements  finished lower levels.  Last year there was a full scale Irish Pub in one!  What are your favorite things to see?   

Home sales up 25% in October

November 21, 2011

Press Release from the Cincinnati Area Board of Realtors:

Local home sales for October – at 1,382 units — were up 25.1% over October 2010. It was the fourth month in a row of increased sales on a year-over-year basis.

Last month’s average price was $142,893, compared to a year prior of $158,832. Average price for the first 10 months of 2011 was $152,188 compared to $159,228 the same 10 months a year ago. What are the driving forces behind the increase in sales this month? “Home affordability and low interest rates,” said Pete Kopf, president of the Cincinnati Area Board of Realtors. “Economic uncertainty continues to hamper the housing market, but this is a great time for first-time home buyers, move-up buyers and even investors to take advantage of our extremely affordable market.”

The following study, Social Benefits of Homeownership and Stable Housing 2010, claims that homeownership also “enhances civic pride, improves voter turnout, increases personal happiness, reduces crime, and provides a better family environment.” “This is no surprise to our Realtor members,” said Kopf. “That is why we do what we do, promoting the benefits and affordability of homeownership.”

The average interest rate in Cincinnati today is 4.02% for a 30-year fixed rate mortgage, according to Bankrate.com. Nationally, the average interest rate is 4.24%. A buyer with a good credit score has a tremendous opportunity to find the home of their choice within the current housing inventory.

At a current interest rate of 4.02% for 30 years, the monthly payment for an average, locally priced home of $143,000 would be $684. When you add in the income tax benefits, it only makes sense to buy instead of rent,” says Kopf. “Interest rates today are very low and today’s buyers are taking advantage of these rates while they last.”

The Cincinnati area housing market currently has 9 months of available inventory compared to nearly13 months a year ago. A balanced housing market has 6 months of inventory. Therefore, buyers have the advantage in today’s market. This means that sellers must reasonably price their homes to compete with other sellers and their property should to be kept in tip-top condition to generate buyers interest.

Summary of Single Family and Condominium Sales

Multiple Listing Service of Greater Cincinnati

Cincinnati Area Board of Realtors®

October Home Sales

                                         Closings                                 Gross Volume                                     Average Price

October 2011                1,382                                    $197,478,491                                      $142,893

October 2010               1,105                                    $175,509,907                                     $158,832

Variance                         + 25.07%                              + 12.52%                                                 - 10.04%

Year-to-Date Home Sales

                                         Closings                                  Gross Volume                                   Average Price

Jan-Oct 2011               14,280                                     $2,173,325,943                              $152,188

Jan-Oct 2010               14,627                                    $2,329,034,409                             $159,228

Variance                         – 2.37%                                    – 6.69%                                               – 4.42%

 

Nationwide, October home sales were up 1.4% from September on a seasonally adjusted basis and up 13.5% from October 2010.

Let there be (light) space!

November 15, 2011

Many people think of adding square footage to create more space. But here’s how to create the illusion of space without adding more square footage.

1. Think diagonal views. Stand in one corner and arrange a clear view to the other corner. Place floor tiles on the diagonal. It makes the space seem larger, pushing the walls out.

2. Lighting will open up space. To give your house an airy feel, use simple window dressings to bring in natural light and steal space from the outdoors.

3. Accessorize. The bigger a piece of artwork is, the bigger the feeling of space. A wall filled with many small pictures seems cluttered and space appears smaller.

4. Let there be height. Use at least one tall element in a room to draw the eye upward, towards the ceiling. Not only does this maximize the vertical space in the room, but it also draws the eye up to the less crowded ceiling space above.  Even if you don’t have tall ceilings, consider raising your curtains a few inches higher than your windows, it helps to draw the eye up and makes the room feel taller.

5. Play with the furniture. Try to move furniture away from the walls if space allows. It will give a feeling of openness when a sofa isn’t butted against a wall. If buying new pieces, purchase items on legs versus feet. The higher a piece sits from the floor the more visual space is present.

 

 

Tips taken from Pillar to Post.  Images taken from here, here, here and here

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