September 2008 Archives
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.
Posted by Mike Parsons
September 12, 2008 at 01:25 AM
As the Fall and the colder months approach, here are a few things to remember to do to protect the integrity of your home.
Disconnect your hoses to exterior faucets. When it gets cold, water can freeze in a hose and back up into the spigot causing your interior water lines to break.
Install your storm windows.Chances are if your home is 1960 or older like in Victorian Village, Clintonville, Old Arlington, Grandview, and Old Worthington, you probably have storm windows that you change out with screens for the warmer months. Over the years many homeowners have installed storm windows on the outside of their wood windows to maintain the character of the original windows and add protection and insulation. Time to put the storm windows back in. If you don't have storm windows that can be a worthwhile expense and can really improve your utility bills in the colder months.
Winterize your lawn equipment.Make sure to do oil changes on all of your gas powered lawn equipment. Also, it is recommended to run your gas powered mower and trimmer until the gas is gone and it dies. This will prevent the carburetor from being clogged by old fuel. Gas can expire, evaporate, and get old. This exercise sometimes leads folks to condo living.LOL
Test your smoke detectors.Change the batteries on your smoke detectors every year. Also, smoke detectors should be replaced every 10 years.
Plant bulbs.Fall is a great time to plant those flower bulbs so they come up in the spring. The ideal ground temp to plant bulbs is 50 degrees, typically about 6 weeks before the first freeze.
Posted by Mike Parsons
September 09, 2008 at 07:51 PM
We have seen rates drop almost a half point in the last week. Many buyers that have been sitting on the fence may jump in now. Many of these teetering buyers are first time buyers. They help stimulate the domino effect of buying a home that allows another family to move up to a more expensive home and so on. This will help to counteract the typical slowdown in Columbus, OH starting in September after school starts. My own thoughts lead me to believe this winter will be on of the most ideal times to buy a home in the last decade. High home inventory due to adjustable mortgaqes going adjustable, school starting which really slows the market, temporarily over protective lenders that make it tough to get financing on homes that aren't perfect, and super low interest rates will lead to a perfect storm of excellent real estate values. Buyers who buy in December and January when the market is the slowest and there is snow on the ground will be very happy with their Columbus home investment in the next five years after our inventory stabilizes. I believe values/prices will begin to stabilize in Spring of 09'. Don't get me wrong, around Spring its still going to be a little messy out there I just think this Winter will be the bottom of prices. By this time we will see almost all of the ARM's have been foreclosed upon, sold their homes, or have refinanced out of their problems. This will lead to less Bank Owneds on the market and less new inventory coming into the marketplace. Our older, established areas have been solid (Worthington, Grandview, Upper Arlington, Clintonville) and even getting multiple offers for homes in awesome shape or that were renovated. We have seen the biggest problems in areas that have newer homes, condos, and in areas that have lesser rated school districts. Some of the best below market opportunities might be in some of these newer areas that are nice but are swamped with temporary huge numbers of competing listings. It will take a couple years for these sub markets to stabilize but for the buy and hold homeowner or investor I think this winter will be the bottom
Posted by Mike Parsons
September 08, 2008 at 05:01 PM
Our river city tops Forbes list of the most affordable places to retire. Our reasonably priced homes, lower inflation rates and low unemployment rates for those over 65 who wish to continue working, all contribute to the ranking.
As well, Columbus has the most doctors per capita and the highest number of citizens (per thousand people) tapping their Medicare benefits. Both issues are extremely important as the population’s life expectancy continues to increase. With people living longer, the need increases to stretch those dollars as much as possible.
The Columbus Board of Realtors launched “The Grass is Greener Here” campaign during the Spring. This was done to quell the negative rumors from the media, who tend to pain national trends as opposed to what’s happening in our local markets. As we know, “all real estate is local.”
On the heels of this latest news, see what others are saying about Columbus:
• ..One of the top 200 Best Places for Business and Careers..."
-Forbes
• ...A top 50 hottest city for expansion and relocation..."
-Expansion Management Magazine
• ...The second best city in the nation for African American families..."
-BET.com
• ..Franklin County is one of the top large counties for recruiting and attracting new business..."
-Expansion Management
• ..15th-largest city in the United States"
• ..One of the fastest-growing major metropolitan areas in the Midwest."
• ...No. 1 among the Top 10 Up-and-Coming Tech Cities..."
-Forbes, March 2008
• ..Seventh-strongest economy in the nation..."
- POLICOM, August 2006
• .Eighth-best big city on Money Magazine's 2006 Best Places to Live list..."
-Money Magazine, 2006
• ..A top hottest city for expansion and relocation..."
- Expansion Management Magazine, 2006
• .No. 9 among the Most Affordable Places to Live Well..."
- Forbes, November 2007
• ...Population in the Columbus Region as grown by 455,000 people (36%) during the last 26 years - to 1.7 million in 2006. Since 1980, Columbus has grown 12 percent faster than the national average and nearly six times faster than the state of Ohio..."
• ...one of the largest college populations in the nation, with 110,000 college students enrolled in 20 higher education institutions. Ohio State University was ranked the largest university in the United States in 2006..."
• ..Fourth-safest city for businesses in the United States..."
- Risk & Insurance Magazine
• ..The state of Ohio ranked number one in the nation for the number of attractive micropolitans for capital investment..."
Contributed by Judy Gray, Relocation Director of Cam Taylor Realtors
Posted by Mike Parsons
September 05, 2008 at 04:30 PM
Do you think your property, or your client's property, is valued too high by the Auditor's office for real estate taxes? Check out this article written by good friends of mine Ralph and Brian Berger. There is a complaint process that is administered by the Board of Revision.
If you believe your value is high you will need undisputable evidence to support the valuation. Once you appeal your value, it can go up, down, or stay the same.
Taxes are one year in arrears. Therefore, your tax bill that will come out around December 20, 2007, is for the valuation of your property up to 1/1/07. This means if you have an appraisal for the appeal it should be dated as of 1/1/07.
If property values are dropping in your neighborhood in the year 2007, then this will take effect with your 2008 tax bill.
The county re-evaluates your property taxes every three years. Therefore, the county will be re-evaluating your tax valuation in 2008 (also upon transfer assessed valuation is adjusted to the sales price).
Instruction on filing a tax complaint and forms are located on the Auditor's web site. All local Auditor's web sites are on ColumbusRealtors.com under `Related Links'. Once at the Auditor's web site look for tax complaint or board of revision.
Also you will need to pull up your property record card from the auditor's office (under property search). This will have information needed to fill out the board of revision tax complaint form (i.e., tax district, parcel number, assessed valuation, owner of property and sales history).
Typically for residential properties, if the form is filled out properly and submitted and received before the deadline (March 31), and with evidence (an appraisal completed by a state certified appraiser) supporting a lower value, the board will make a decision and either will accept the appraisal value or set up a formal hearing.
The board of revision, the school board representative, and the person filing the tax complaint (and their attorney and/or appraiser) are usually the parties at the hearing.
The board will review your evidence (usually an appraisal or recent sales of properties or comparable sales of similar properties) for a lower property value. The school board attorney will also have the right to review the evidence and ask questions.
The board then takes the evidence under advisement and will notify by certified mail of their decision.
If the school board is involved they will (1) accept the board's decision or (2) appeal the case if they are in disagreement.
The school board if in disagreement may elect to have the property appraised for the appeal. The school board has a vested interest in real estate property taxes as they receive most of their funds from these taxes.
The appeals hearing is similar to the first hearing except now there is an opposing side.
After all evidence is presented, the board again will take under advisement and notify of their decision later by certified mail.
It is very important to fill out the form completely and properly. If an entity other than an individual is owner of the property the complaint may need to be signed by an attorney. Be careful to meet the deadline, and have substantial evidence to show a reason for a lower value. This form needs to be notarized. Complaints will only be accepted from December to March 31.
I have appeared before several boards of revision on numerous occasions and have found them to be very fair in both the complaint process and their decision.
The auditor's office uses a mass appraisal system to determine the value of your property. The system is good, however, most are expected to be the correct property valuation, but some are also expected to be high and low.
We are currently in a buyer's market in central Ohio as evidenced by larger inventory of houses, longer selling periods and generally leveling prices. Therefore, tax complaints will probably increase in 2008 even though the county will be doing a complete re-evaluation of properties.
By Ralph F. Berger, MAI, SRA and Brian R. Berger, R.F. Berger and Associates, Inc.
