Posted by Mike Parsons
February 04, 2009 at 10:17 PM
I'm the luckiest guy in the world
By Gary Parsons
President
Thank you for entrusting me with the honor to represent you as the President of the Columbus Board of REALTORS® in our 101st year.
Many people have come up to me and said Parsons, "It is not a very good year to be President of the Columbus Board of REALTORS®, is it?"
My initial thought is, "Are you kidding me? I'm the luckiest guy in the world to have this honor to represent you!"
The reasons are numerous:
We have an association and staff that is one of the finest in the nation!
We have excellent training and educational programs in place that many associations strive for.
We have a multiple listing database covering seven contiguous counties and parts of 10 other counties that is trusted, accurate and state of the art.
We work freely with our political representatives to ensure that the rights and privileges of homeownership are promoted and protected.
We have a cooperative relationship among all REALTORS®.
We have a central Ohio community that is stable in so many ways. A well diversified, solid work force, excellent transportation routes, great affordability of housing and abundant arts and educational opportunities.
We as REALTORS® unlock the dreams of homeownership. We sell millions of dollars of real estate each and every year.
If you look at the ancillary services provided through homeownership (lumber, landscaping, home improvement, furniture, etc.), it's clear that home ownership is the vital engine that drives the American economy.
It creates strong communities and builds wealth for families.
The Columbus Chamber of Commerce realizes that we have 7,000 REALTORS® and affiliates who are out selling the benefits of central Ohio and its communities each and every day.
Our real estate professionals spend thousands of hours giving their time and service with programs such as REALTOR® Care Day.
A recent NAR study found that a buyers top concern was the strength of the community in which they were buying a home. It is not features like four bedrooms, a three-car garage, or newer kitchens.
They want to be in an area they trust and in which they are comfortable. We have so many neighborhoods in central Ohio that provide that sense of community and are affordable. We have to continue to go out and sell the attributes of central Ohio each and every day!
In my opinion today is one of the most opportunistic times to buy or sell real estate that I have seen in 35 years in the business. But, we must continue to tell the public that it's more than a slogan -- it's the truth -- The Grass is Greener Here!
We have a great inventory, historically low mortgage rates, wonderful communities and, with an average sales price of $166,000, excellent affordability.
Recent weeks have shown that improving affordability will spur the economic recovery in central Ohio and the nation.
Let us in the real estate industry be a catalyst for recovery. Let us be active, positive, and resourceful in promoting this most opportunistic time to our communities of buyers and sellers.
We have a superb leadership team, working for you and ready to lead you forward in the upcoming year. Thank you again for the honor to represent the Columbus Board of REALTORS®.
Let's all go to work!
Posted by Mike Parsons
October 22, 2008 at 07:17 PM
The central Ohio housing market continues to stabilize as home sales are maintaining levels similar to last fall,
according to the Columbus Board of REALTORS®.
Locally, there were 1,824 homes sold in September, just 1.5 percent behind the 1,851 homes sold during
September 2007.
“The difference in sales of only a handful of homes demonstrates the stability of central Ohio’s market at a time
when many other markets nationwide are struggling,” says Greg Hrabcak, President of the Columbus Board of
REALTORS®.
“Sales are not as high as they were during the boom years but they are in keeping with pre-boom levels,” says Hrabcak.
“That, in and of itself, is really good news, because theoretically, we should be experiencing much lower sales to
compensate for the inflated numbers we saw back in 2004, 2005 and 2006.”
Last month showed more positive news for home sellers as well. As fewer homes were added to the market in September than in August, the number of homes for sale continued to decrease. With 16,598 homes on the market in September, the area’s inventory was at its lowest point since February,
“The housing market follows the same basic principles of supply and demand, so as inventory continues to decline from what were record high numbers just a few years ago, sales prices will increase and central Ohio will again see a market that is balanced in favor of both buyers and sellers,” Hrabcak added.
The average sale price of a home in September was $160,755, down 4.5 percent year to date, but only 1.7 percent behind what the average home sold for last September.
Posted by Mike Parsons
October 07, 2008 at 08:26 PM
Hey folks! If you are a first time home buyer, chances are you are using FHA financing. Wells Fargo has come out with a new program that buys down your market interest rate 1% for the first year. This buy down or temporary interest rate reduction doesn't cost the buyer any money. If the current interest rate is 6%, your first year interest rate will be 5% and change to 6% fixed for the next 29 years. This is a great bonus compared to anything else I have seen out there currently. If you have any questions you can email me or contact Dave Dikeman with Wells Fargo at 614-310-1126 to learn more.
Posted by Mike Parsons
October 02, 2008 at 12:20 AM
One of the most exciting new provisions of the Housing and Economic Recovery Act of 2008 is the First-Time Homebuyer Tax Credit. The credit is designed to encourage first-time homebuyers to go ahead and make the leap to purchase their first homes. Combine this tax credit with the fact that home prices are at historical lows, and indeed it is an ideal time for many first-time homebuyers to purchase homes.
Here are some things to keep in mind:
The credit is available for homes purchased between April 9, 2008 and July 1, 2009
The credit amounts to 10% of the purchase price of the home not to exceed $7,500
A first-time homebuyer is defined as someone who has not owned a home in the last three years
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
The tax credit works like an interest free loan and must be repaid over a 15 year period
How does a tax credit work?
A tax credit is a special provision that reduces income tax liability on a dollar for dollar basis. When filing a tax return, you must include income items, deduction items and the number of exemptions, among other things, to figure your total tax liability. If your total tax liability ends up being $7,500, and you qualify for the full $7,500 tax credit, this credit would be applied and would wipe out all of the tax due. If your employer had already deducted the $7,500 from your pay checks throughout the year, you would receive a tax refund of $7,500.
Does the credit have to be repaid?
Yes, the credit does have to be repaid, so it is really more like an interest free loan. Homebuyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a homebuyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
Conclusion:
For more information about the first-time homebuyer tax credit or other changes resulting from the Housing and Economic Recovery Act of 2008, just give me a call. I would be happy to assist you with your mortgage in the purchase of your new home!
$7500 Tax Credit with Ohio Bond Money
The Housing and Economic Recovery Act of 2008 (H.R. 3221) prohibits the use of the $7,500 new First-Time Home buyer Credit in conjunction with tax-exempt Mortgage Revenue Bonds. Because the OHFA First-Time Home buyer Program is financed with tax-exempt Mortgage Revenue Bonds, homeowners who use the OHFA program are not eligible for the credit.
If you are a first time homebuyer and qualify for bond money, it still may better choice than the tax credit. Remember the tax credit has to be paid back. It will depend on your circumstances.
Best regards,
Michael Reeve, MBA, CMPS®
The Guernsey Bank, Vice President
614-547-1570 x307
mreeve@guernseymortgage.com
guernseymortgage.com
Posted by Mike Parsons
September 25, 2008 at 08:15 PM
While the first time homebuyer market $200,000 and under has been popping, homes that require folks to move then buy are sitting. The ones that are really struggling are the $400,000+ homes. The $400,000 plus marketplace has been fueled by the creative loans, teaser interest rates, and over-confident consumers that we hear about in the news everyday. This is simply not a time when purchasers feel confident enough to make those high dollar purchases. The media has created alot of fear. They figure they will wait it out. Also, many of the newer homes built in the last 5-6 years homes at $400,000+ that were sold on the outskirts of Columbus in neighborhoods like Wedgewood, Golf Village, Dublin, Powell, Lewis Center, etc.. are being perceived as over valued by the market. For most, its not huge price depreciation, but enough to keep most sellers under water. New builds were just sold at such a premium due to the below market financing. Buyers were evaluating homes based upon their mortgage payments instead of the purchase price.
The old addage Location, Location, Location is returning to be a theme as buyers are now much more considerate of commutes to work(gas), and the stronger investment of homes in established communities. Areas like Clintonville, Upper Arlington, Grandview, and Worthington have faired much better for sellers because every other home isn't on the market weighing the prices down. Buyers have forgone the huge open great rooms and vaulted ceilings for usually smaller homes in established communities that offer walk to schools, walk to restaurants, and more of a community feel.
Areas that are really taking a beating are Groveport, Pataskala, Pickerington, and Grove City due to a whole lot of new building and existing home inventory, and in some cases a perceived lesser school district.
Westerville and Hilliard are caught somewhere in the middle and have faired decently.
The Short North, Victorian Village, and Grandview continue to be pretty hot and pricey.
The Downtown and Arena District seller who bought in 03'-04 and were selling in 05'-06' did pretty well but it remains to be seen how many of the dowtown condos and lofts will fair over the next few years as investments. I am skeptical how the market will react to the once 5-10 tax abatments in some of these areas that will be coming due and are bound to affect buyers value and will go straight to their payments bottom line.
Posted by Mike Parsons
at 07:37 PM
1. Plugging or caulking air leaks around doors, outlets and switchplates on exterior walls. (save 10%)
2. Maintain the heating system properly. Heating accounts for half of the average families energy bill (about $950 a year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost will pay back in better performance all year long.
3. Insulate everywhere. Adequate insulation in the attic, ceiling, exterior and basement walls, floors, and crawlspaces can save up to 30% on home energy bills($630 a year). Focus on the attic(heat rises). Most homes should have between R-30 and R-49 insullation in the attic.
Learn more at www.eere.energy.gov/consumer
4.Install a programmable thermostat. Programming the thermostat from 72 degrees to 65 for eight hours a day while on one is home, or everyone is tucked in bed, will cut the heating bill up to 10% ($90 per year) paying for a basic unit in less than a year.
5.Mind your hot water. Water heating accounts for 15% of household energy use. Reduce water heating costs by lowering the water heater's thermostat setting. Each 10 degree reduction can save between 3-5% in energy costs. Also insulate the hot water heater and the hot water pipes.
6.Seal and insulate heating ducts. A system ca lose up to 60% of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.
7.Close fireplace dampers when not in use. When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55dgrees.
8. Let the sun shine in. Open curtains on South facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.
9. Install storm windows over single-pane windows or replce them with Energy Star qualified windows. Storm windows reduce heat loss by 25-50%, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy. Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can't afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.
10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30% with Energy Star labeled products.
Information by Kelly Quigley
Posted by Mike Parsons
September 24, 2008 at 06:16 PM
Although traditionally a seller’s market, abnormally high levels of inventory over the past two years have been the key contributing factor for the change to a buyer’s market in central Ohio. However, the inventory of homes for sale has been decreasing throughout 2008.
There were 16,975 homes for sale in the central Ohio area in August 2008 which is 14.2 percent lower than last year at the same time
according to the Columbus Board of REALTORS®.
“Exceptionally high numbers of homes for sale over the past two years have made it appear that home sales were flailing,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “Although not the case, the fact that inventory levels are decreasing while sales are maintaining supports the market correction we’ve been anticipating.”
Although home sales today are not as high as during the housing boom, which started in 2003, sales are in keeping with pre-boom sales levels.
“Industry professionals know that the market has to take a breather after a boom in order to correct itself,” offers Hrabcak. “What most don’t realize is that, theoretically, home sales levels should be much lower to compensate for the inflated sales levels during the boom. The fact that our sales levels are in keeping with pre boom levels is actually strong evidence that the central Ohio housing market is healthy and stable.”
The average sale price of a home in central Ohio is down 4.8 percent from one year ago. “Again, this is due in great part to the high level of inventory.
When you have a much higher number of homes on the market than buyers, the sale price of a home will drop in order to compete for the smaller pool of buyers,” adds Hrabcak.
“However, we’ve seen the average sale price creep up throughout 2008. The average sale price in August was $175,632 which is almost 15 percent higher
than the average sale price of $152,790 back in January 2008!”
The Columbus Board of REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow and Union Counties
and parts of Champagne, Clark, Hocking, Licking, Fairfield, Knox, Logan, Marion, Pickaway and Ross Counties.
This is a press release of the Columbus Board of Realtors.
