Columbus areas 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 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.
Posted by Mike Parsons
August 21, 2008 at 07:27 PM
Our Good friend and President of the Columbus Board of Realtors, Greg Hrabcak, was invited to talk about the Columbus Real Estate Market on FOX News. The Columbus Board of Realtors model of success continues to be a role model for Realtor Boards across the country. You can see Greg here.
Posted by Mike Parsons
July 02, 2008 at 09:07 PM
Everyone has been watching the news and reading the papers except the buyers and sellers in Grandview. Someone forgot to tell them we are in a slow real estate market. The prices don't seem to stop. While most other Columbus suburbs have experienced a slowdown in offers/showings and mild price declines, Grandview hasn't missed a beat. I have been out with two different sets of buyers in the $250,000 and under price range and if the houses we see are decent, the house is gone. There just isn't much inventory on the market which is contributing to the strong market. Grandview is the only sellers market in Columbus, OH right now!
1147 Grandview Ave. needed alot of work but had beatiful potential-In contract in just a few days.
854 Palmer never made it to the market at $164,900.
1001 Parkway was one of Grandview's rare foreclosures and lasted about 4 days.
1298 Murrell didn't even leave us enought time to see it, gone in a number of hours at $205,000.
1110 Elmwood, 2 days.
852 Timberman Sold in 9 days for $224,900
1289 Elmwood 10 days at $242,500
1429 W. 2nd Ave. Sold 3 days at $221,000 (2 bed, 1 bath)
908 Timberman Sold in 3 days at $199,000
Moral of the story: If you want a 2 story home in Grandview for less than $200,000, you better get in the first day and make an offer. If the house is priced higher than $250,000 that might buy you a few extra days to make your decision. Good Luck!
Posted by Mike Parsons
May 23, 2008 at 04:28 PM
(April 23, 2008) The number of homes listed for sale over the past two months is lower than the previous year suggesting the market may be beginning to adjust itself. The 4,518 homes added to the market in April were 8.5 percent lower than April of 2007 and the 3,697 new listings in March were almost 29 percent lower than the previous year according to the Columbus Board of REALTORS®. The number of new listings January through April (15,648) is almost 12 percent lower than the same period last year.
“The recent lower sales prices are due to the overflow of inventory on the market for the last couple years,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “It’s simple economics…When there is a greater supply than demand; the price will drop in order to compete.
Although a hard pill to swallow for sellers, buyers have been in a very favorable position these past couple years. Now that may be changing.”
Currently, there are over 17,500 residential homes and condominiums available for sale in the central Ohio area. Although there is a broad
selection of homes in every price range, 67 percent of the listings fall in the $100,000 - $399,999 price ranges.
Home sales for the year (January through April) are 12.3 percent lower than the same period last year, but are still in keeping with the pre-boom
sales pace. The average sale price year to date is 7.2 percent lower than what the average home sold for last year.
“We’ve also seen a 40 percent decrease in the number of homes sold this year in the $750,000+ price range,” offers Hrabcak.
“That kind of decrease in higher end home sales has significantly impacted the average sale price.”
“Word on the street?...Agents can’t believe that sales are down because they’re so busy. Housing activity has really picked up
now that the weather is nice and buyers are realizing that market conditions are so good.”
To view March & April sales charts, click here.
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.
-Reported by the Columbus Board of Realtors
Posted by Mike Parsons
May 08, 2008 at 08:57 PM
Many residents were saddened to see their hometown grocery store shut its doors. I didn't realize until I moved to the Old Worthington area how valuable and convenient the store was to our residents. It was only a short walk or drive away and now residents must make the commute to Giant Eagle on 161, Kroger at Worthington Square, or down to Graceland shopping center for their quick ingredient pit stops. CVS has been making good headway on their construction and should offer Worthington residents that convenience for small food stops that we have been missing for the last 6 months. I look forward to seeing the finished project. The City of Worthington worked long and hard with CVS to bring a building that reflects the Worthington architecture that we know and love. I look forward to potential future redevelopment across the street on High St. as well as across North St. from the Jubilee locaiton where the current CVS and Kinkos reside. Those potential redevelopments will do so much for the feel of the High St. corridor. Sometimes I think many of the dinosaurs in Worthington fear change and redevelopment. I believe we should be open to any potential projects that maintain our classic colonial architecture and bring in businesses that attract community, culture, and social gatherings.
Posted by Mike Parsons
at 08:24 PM
We are starting to see the young folks coming back! They are opting to come back to Worthington after their after-college jaunts to New York, California, and other states that lure young people away to "greener pastures". After some exploring, many find that all communities are not created equal and long for the culture they experienced growing up. We are seeing many Thomas Worthington High School grads returning to the Olde Worthington area, Kilbourne Estates, and Worthington Estates neighborhoods. I would expect this trend to continue.
These thirty somethings may have previously bought a new home in Hilliard or Delaware County and found that they missed all the amenities of an established, centrally located community. Some stumbling blocks for many of these young professionals are the home prices and "dated" home inventory. If it weren't for the high prices I think we would see many more flocking. House Wine, P.K. Oryans, and Old Bag of Nails has given a casual social setting that Worthington once lacked.
Posted by Mike Parsons
at 08:09 PM
If you want to experience something very cool that Worthington has to offer, stop down every Saturday in downtown Worthington, Ohio from 9:00AM until Noon. There you will find the Worthington Farmers Market. The streets and sidewalks are filled with farmers marketing their natural produce and foods. It is a traditional market setup with crowds flocking toward their favorite vendors. People come from Delaware County,Westerville, Clintonville, Upper Arlington, and Dublin to experience this traditional mix food and culture. Worthinton Farmer's Market is located one block south of route 161 on High Street (RT. 23) in the downtown business section. For more information you can check the Olde Worthington Business Association Website at www. owba.net or the City of Worthington website at http://www.worthington.org
Posted by Mike Parsons
April 10, 2008 at 03:29 PM
All real estate is local in nature, yet the media often quotes national trends and statistics. Central Ohio is a healthy and stable marketplace. Over 24,000 homes sold in Central Ohio in 2007. According to a Forbes.com report Columbus is the 7th most affordable place to live well. A Forbes and MoodysEconomy report called Columbus the 3rd most stable housing market in the country based on the strength of our economy,the affordability and availabilty of housing and the availability of the local credit markets. Home sales are affordable ! the average sale price of homes in Central Ohio continues to be considerably lower than the national average. 2007 was the 4th best housing market in history coming off the biggest housing boom in years 2003-2006. Home prices have a steady increase of 40% over the last decade. The chief economist of the National Association of Realtors considers Central Ohio undervalued. Housing prices are lower than what experts would expect . In Summary, The Grass is Greener here ! Call The Parsons Real Estate Group to buy or sell your next home !
Posted by Mike Parsons
March 02, 2008 at 11:09 PM
Here are the latest 3 sales in Worthington Estates and Olentangy Hills. Worthingway hasn't had any sales in the last couple months.
472 Blandings Ct., a 3 bed 2 bath 1640 square ft. 1 story, was Sold on 1/4/2008 by Phil Giessler for $213,000 and on the market for 26 days.
73 Heischman was sold on 2/13/08 at $219,900 in Worthington Estates East. It was a 2 story with 2080 sq.ft with 4 bedrooms and 3 full baths and on the market for 255 days.
6865 E. Alloway was sold on 2/20/08 for $223,500. The one story had 3 bedrooms/2baths and was on the market for 82 days.
Posted by Mike Parsons
February 11, 2008 at 01:42 AM
Zherdev has been setting the Nationwide arena on fire this year. Burnham Square has been a very popular condominium complex for the Columbus hockey team due to its super close proximity to Nationwide Arena (about 100 yards). Nikolai purchased a 2 bedroom, 2.5 bath, 1958 square foot condominium at Burnham Square in 2006 for $457,000. Other notable residents of Burnham Square in the Arena District are Pascal LeClaire at $492,000 and Kristian Tollefsen at $445,000.
Posted by Mike Parsons
January 30, 2008 at 11:49 PM
Due to Gary's role as President Elect for the Columbus Board of Realtors he has been getting many calls from reporters about the housing market. Don't worry we won't let it go to his head. Click here to see Gary on Channel 3 News.
Click Here for Video
Posted by Mike Parsons
December 22, 2007 at 04:33 PM
Worthington's new arts center will be a great resource for cultural events, entertainment, and education in the Worthington Community. It will be prominently showcased next to Thomas Worthington High School at the corner of Evening Street and Dublin Granville Road. The Worthington Arts Council has debuted the new drawings for the McConnell Arts Center. The structure will feature a 220-seat auditorium, classrooms, studios, offices and exhibit spaces. Most of these areas will be multi-use and will be available for public and private meetings as well as social gatherings. You can see the floorplan and sketches of the exterior at the link below.
http://www.worthingtonarts.org/...
Posted by Mike Parsons
December 03, 2007 at 04:37 PM
Money Magazine looked at 30 of the nations largest metro areas and picked the top areas or neighborhoods to retire. Click on the link below to go to the Money Magazine article about the Short North.
Money Magazine Article
Posted by Mike Parsons
November 27, 2007 at 08:50 PM
Slower listing pace supports market correction
(November 27, 2007) The number of listings added to the market in October was down for the third month in a row, a strong indicator that the market is beginning to correct itself. The 3,578 homes listed last month is down 6.9 percent from one year ago. In addition, new listings in August and September were down 8.3 percent and 5.7 percent respectively according to the Columbus Board of REALTORS®.
"The record number of listings added to the market each month has tilted the scales strongly in favor of the buyer this year," said Brad Bennett, President of the Columbus Board of REALTORS®. "As the inventory of homes has been roughly sixty percent higher than our norm, sellers have had to lower prices to compete for the buyer. This has caused home values to appear lower than they actually are. As the listing pace slows, inventory levels will drop and home prices will rise again as the market begins to correct itself."
The average price of a home sold in central Ohio in October was $164,844 which is 0.9 percent lower than the average sale price one year ago. The average sale price of a home sold in the first ten months of the year is $173,122, which is 1.5 percent lower than the year to date average last year.
"A Forbes.com study released in early October reported that Columbus Ohio is the third most stable housing market in America and further projects that we?ll see strong price appreciation in 2008," comments Bennett. "As REALTORS®, we know that 2007 has been a corrective year after several years of extraordinary housing activity. We also know, based on our experience, that central Ohio is and always has been reliable and solid when it comes to home values."
Posted by Mike Parsons
October 17, 2007 at 09:48 PM
This website is a great resource to see Columbus area demographics and allows you to compare them to other surrounding Columbus zip codes. Some areas of interest that are tracked are age, population, education, and income. http://zipskinny.com/
Posted by Mike Parsons
September 18, 2007 at 07:15 PM
When it comes to housing, words like slump, slow, and risky pepper headlines across the country today. Those of us in central Ohio scratch our heads, as in our market, sales are exceptional when you take a look at the big picture...
In 1972, the Greater Columbus area was made up of six counties, had a population of 1,170,000, fixed mortgage rates were 7.5 % and Realtors sold 8000 homes.
By 1982, our population was 1,270,000 (up 100,000 in 10 years), fixed rates were 16+%, and 5700 were sold.
By 1992, the population was 1,400,000 (up 130,000), fixed rates were 8.25%, and 14,000 homes were sold.
Today, our population is 1,700,000, fixed rates are in the 6.25% range, and last year REALTORS sold over 26,250 houses.
I repeat-26,251 homes were sold last year in Central Ohio...that's hardly a slow market!
Here's the good news you haven't heard!
-In the past 40 years the median price of homes increased every year except 2006-which followed four record setting years of increases.
-Central Ohio home values have increased almost 33% in the last decade.
-Last year was the third highest number of sales ever in Central Ohio. Yes, it was down 4.5% from 2005 and the average sale price is down a whopping 1%, but it was still a good year. Today, compared to 2004, only 3 years ago, we have sold close to the same number of houses and the average sales price is up nearly 3%.
-The median net worth of a rental household is $4,800, yet the net worth of a homeowner household is $171,000.
-In the next 15 years the baby boomers are going to inherit 90 trillion dollars. Ninety-six percent of baby boomers think real estate is a good investment, 8 out of 10 own their own homes, and 34% own multiple properties. That demand for the future real estate will certainly push investments higher.
-Since 2000, the DOW has gained 10% (all in the last year). In the same time, the average home nationwide appreciated 88%.
-While we often hear that Ohio leads the nation in foreclosures, we were actually 8th in 2006. Certainly that is not great, but Ohio is also #8 from the top in the percentage of households that own their own homes! In Columbus, we are 19th of the top 100 MSA's in foreclosures, but are lower than Vegas, Dallas, Denver, Indianapolis, Houston, Memphis, Lauderdale, and lots of others.
-Problem sub-prime loans make up less thatn 1.5% fo all loans.
-Standard & Poor's recently released its list of top 50 major metros at risk of declining home prices in the next two years showed Columbus as one of the least risky. According to the report, on average, there's a 34.6% chance that home prices will drop in the nation's top 50 markets int he next couple of years, with many of the riskiest markets falling in areas that saw steep run-ups in prices in recent years, followed by decreased affordability and drops in rate of appreciation. Columbus is #6 from the bottom and has a less than 10% chance of homes prices falling here (well below the average) in the next two years.
In a nutshell, for the first time in 35 years...
-Inventory is high so there's a terrific selection of homes to choose from.
-Home prices are very competitive.
-Interest rates are awesome (only 3 years in the past 35 years have rates been lower). So you can get more for the money.
-And there are still many great loan programs for deserving buyers.
Now is a great time to buy!
By Brad Bennet-President of the Columbus Board of Realtors
Posted by Mike Parsons
August 29, 2007 at 08:09 PM
9/15/07-We will be hosting a FREE Home Buying Seminar for first time buyers. We thought we would do this class to help first time buyers feel more comfortable going through the home buying process. Often, buyers haven't done the necessary research and aren't prepared for their home purchase. This course is designed for those that hope to buy within the next year, but maybe not tomorrow. It is intended to give home buyers the basics so that everything isn't thrown at them all at once when the time comes to buy. This discussion is intended to disregard the hype and talk about the real issues that are important first time buyers. Subjects that we will talk about are:
1. Typical Steps in a Real Estate Purchase including financing, home search, making and negotiating an offer, to inspections, insurance for your home, and closing on your home.
2. How do I apply for a mortgage loan? What things do I need to be aware of when applying for a mortgage?
3. The biggest mistakes first time homebuyers make in Columbus, OH.
We will have an open forum for any questions big and small after the presentation.
The Free Homebuying Seminar will be held at Park National Bank located 7140 N. High St. Worthington, OH 43085 (Just South of 270 on the corner of Wilson Bridge and High). It will begin at 10am and will go unitl approx. noon depending upon the amount of questions. Light refreshments will be provided. Please call or email to register your seat. 614-523-6818. RSVP is required.
9/15/2007 at 10AM Park National Bank Worthington, OH 43085 614-523-6818 or email mike@parsonsrealestategroup.com to register now!
Posted by Mike Parsons
August 17, 2007 at 06:32 PM
Anyone read the Columbus Dispatch lately? If you are like most of us, the constant barrage of doom and gloom concerning the real estate market can wear on your brain, especially if you have a home for sale. What is the real story with the market you ask? Without writing a novel here are the issues that are affecting the Columbus Real Estate market in a negative way.
Factors that are contributing to the Columbus Real Estate Market slowdown are the following:
1. Tightening of credit and income requirements from banks. Approx. 15% of the homebuyers over the last few years had shaky credit. They no longer can get a similar loan with the tightened standards. With fewer buyers there is less demand and prices come down to meet demand.
2. Over supply of recently new constructed homes. Many buyers were lured into buying new construction with low buy down rates. These buyers were basically buying into the "low-temporary payment" and not the $200,000 mortgage that it was. If it wasn't for the buy down rates and introductory low payments many of those homes wouldn't have sold for the premium prices that they did.
3. Many adjustable rate mortgages that have adjusted to a much higher variable rate thus thus leaving struggling homeowners to try to pay their mortgage payments. Most ARM loans are fixed for 2 or 3 years, then adjust to a higher floating variable rate. The bulk of the ARM's issued were inked between 2003-2005. Most are hitting that 2-3 as we speak and more will realize increases over the next year or so. This is creating many home sellers and more inventory. These borrowers have to weather the very high new payment or sell.
4. The overuse of buy-down mortgages by banks and home builders. Example-A builder would qualify a home buyer on their ability to make the first year mortgage payment of $1000, but each year the payment would rise $200. Most first time homebuyers understood this at the time of purchase, but figured they would either be making more money 3 years from that point or would just sell the home. By the 4th year, we are seeing a flood of new homes on the market because homeowners can't afford their $1600 payment. When every third house goes up for sale on a street supply goes way up, demand and market value goes way down (price drop).
If I am a buyer is it a bad time to buy right now?
No, Between now and the next year and a half will be a great time for buyers to buy at the bottom of the market. Markets are efficient. Meaning Supply and Demand will sort itself out and prices will stabilize in 1.5-2 years or so. Buy at the bottom.
I have a home to sell. Should I sell now?
If you don't have to sell now I would probably hold out for a couple years to maximize your return. If you do need to sell, the good news is that even though you might have to sell for a little bit less than you thought, you will be buying an excellent value on the buyside.
Where are the problem locations and areas I should avoid when buying a home?
Rather than tell you where not to buy, I would tell you that homes with the following qualities are much less affected by market issues than others.
Location,Location,Location. Try to be inside the outerbelt 270. Pick cities that have top ranked school districts. Pick neighborhoods that have parks/schools in them. Pick a neighborhood that is established, meaning a track record of sales in a reasonable amount of time. If you are looking at a neighborhood where literally half of the homes are for sale, that is not an established area. Pick a neighborhood with good proximity to Downtown Columbus. Pick a home that has character. If the home you are looking at has 10 other homes just like it on the same street, you will be facing alot of direct competition when you sell. Your older established areas with great schoold districts are the safest bets. new build condos in the outlying suburbs are facing alot of competition and should be avoided. Unless you are buying a foreclosure or under market these new developments should be avoided. It is tough to sell a condo when there are 100 others of the exact same model for sale down the street. Don't buy a newer home in an area where you will have to compete with builders when reselling your home, the builders will win. If it is must that you buy and brand new home, buy it from a quality builder, not one that maximizes the square footage for the dollar with bad floorplans, lesser components, and shotty materials. If you would like me to tell you who they are feel free to give me a call. Many of these lesser builder's homes sold in 2006 for $250,000. You couldn't get $190,000 now for many of those homes. Don't be that guy!
I hope this blog has helped in some way. If you would like to talk any further about the real estate market I am only an email or phone call away. Mike P
Posted by Mike Parsons
July 13, 2007 at 06:16 PM
We have a new listing in Old Westerville located at 101 S. Grove St. I love working with these older homes that ooze character and always have a story to tell. This home sits on a double/corner lot nestled near Otterbein College. This home has been the subject of many conversations in the neighborhood.
For those of you that don't know, Westerville,OH was a major player in the Temperance and Anti-Saloon Movements in the early 20th century. Grove St. was once known as Temperance Row and is where many officials of the Anti-Saloon League lived. After the brick paving was installed in 1912, these homes were constructed. Milo Kelser moved into the home at 101 S. Grove. Thomas Hare who later headed the Maryland Anti-Saloon League, built the house at 109 and S.J. Fickel constructed the house at 117 S. Grove. Milo Kelser was a leading official in the Temperance movement and his residence at 101 S. Grove served as an alternate meeting spot for the National Headquarters of the movement. 101 S. Grove was the place from which Milo wrote “The Westerville of Tomorrow”, made his mark on Otterbein College, brought national attention to the Westerville community, and made his mark on American politics.
Posted by Mike Parsons
July 05, 2007 at 08:33 PM
This real estate market is in slow motion. Not quite as bad as the National and Local Media would have you know, but still slow. Things are selling, just slower than they were 1-2 years ago. Due to the much longer marketing times we see sellers adjusting their prices to the slow demand, thus, prices sagging a little. We haven't seen any big dips like Florida, Arizona, Cali, etc..., probably 1-5% less than prices in 2004-2005, early 2006. I expect this trend to continue through the end of 2008 at which time we will see a bottom.
Rates have ticked up a bit to approx. 6.875 or so but they are still very good compared to the average over the past few decades.
This expected slow down is magnified by buyers poor confidence from seeing media hype, tightening of lending standards which has taken many subprime buyers out of the market, over supply of inventory in Columbus's surrounding, newer over-built subdivisions, and seller's (ARM's) adjustable rate mortgages starting to shift to higher variable interest rates this year.
Note to Columbus Real Estate Buyers:
Now is a great time to buy. Think location. On the outskirts you can find every third new build for sale. Invest in a community that maintains strong demand. You can find that in neighborhoods where there are few homes for sale, and in cities that are land locked. - If they are going to be building down the street after you buy your home why would they buy your house in 5 years rather than build their own new home? Invest in a home that appeals to a wide audience yet has unique factors you can't find in the home down the street(historical character, central location, convenient to all highways, functional floorplan, walking distance to parks/schools, close to hotspots/nightlife/culture, don't be afraid to make cosmetic improvements to create value)
And remember, if you have a home to sell before you buy, you may get a little less for your home when you sell but you should be able to get a great deal on the new home you buy.
How can I put myself in the best resale position down the road?Buyers and sellers remember: You may get more square footage and a cooler updated floorplan buying a new home but don't be surprised when resale time doesn't pad your wallet. There is a trade off between new homes and resale. New homes typically won't start appreciating until year 4-5. Older, centrally located, established neighborhood homes start appreciating from day one. When you buy new you pay a premium for new mechanicals, roof, ability to customize, and always competing with multiple like-king houses in the neighborhood, etc...When supply is high in a neighborhood, homes are always competing with one another and prices never appreciate.
Posted by Mike Parsons
April 17, 2007 at 05:26 AM
Here is a website that offers a great forum for Worthington residents to talk about the community and local issues. Mike Duffey, a Worthington City Council official, has launched www.MikeDuffey.com. He has engineered an online forum for citizens concerns and ideas. He is eager for residents thoughts, concerns, and ideas and hopes it will be another medium to simplify residents communication with the City of Worthington. Lets help Mike and City Council make Worthington a better place for all generations.
Posted by Mike Parsons
October 16, 2006 at 09:45 PM
Kirk Herbstreit, the former OSU Buckeye football player and current Gameday TV personality bought this 3600 sq. ft. home on Onandaga in Upper Arlington in 2004 for $739,500, only to bulldoze it. Thats an expensive lot! He then built a brand new home(not pictured) that is rumored to have cost $3-4 million.(below)
He recently just sold this Wedgewood home in Powell at 5166 Canterbury for $1,075,000 where he lived while his house was being built. Not a bad selling price considering he bought in 04' for $975,000 at the peak of the luxury market when other homes in this price range didn't appreciate much.(below)
OSU Football Coach Jim Tressel sold his old home on Arlington Ave in Upper Arlington due to it's lack of privacy. He opted for a larger setback lot on McCoy where he purchased this 2 acre, $1,375,000 home for list price. He now has a football field sized front yard which helps to keep stalkers off his front porch.(below)
I will continue with OSU theme.
OSU Basketball Coach Thad Matta bought this home in the Woods of Josephinum in Worthington on 8/12/2004. The home was only on the market for a week. They were asking $925,000 and Matta got them down to $895,000. The 4054 sq. ft. home is located on Seminary Ridge with a great lot backing to the Olentangy River. (below)
Former Buckeye Football Great and TV/Radio personality Chris Spiellman, bought this home on Edgemont in Upper Arlington back in 1996 for almost $700,000. He has since invested about the same amount of money on upgrades and renovation. His home is valued at $1.6 million and he pays the city almost $30,000 a year in property taxes. (below)
Former Buckeye Andy Katzenmoyer owns this home in Tartan Fields on Rob Roy Dr. He purchased this home in 2000 for $650,000. It was featured in the Parade of Homes, boasts a custom home theatre, and back to the golf course.
Continue reading MTV CRIBS comes to Columbus, Ohio-Buckeye Edition »
Posted by Mike Parsons
September 27, 2006 at 07:36 AM
Parkview Northeast is a small condominium community built by Qualstan located off of Polaris Parkway close to Old State Rd. This area has performed well over the last few years for the following reasons:
1. Polaris is a high demand area close to most amenities(restaurants/shopping), many businesses are located in close proximity(Bank One Corporate, you know the mile long building down the street).
2. Due to the complexes small size, it seems to maintain a decent demand for well conditioned units.
3. Offers the cheapest real estate that can be bought in the Olentangy School District.
4. Parkview Northeast offers ranch(1 story) condos with huge full basements. Typically priced in the $135,000 to $145,000 range depending upon condition, sq. ft., and garage size. You can't find a ranch condo with a full basement anywhere close in a good area for under the $180,000's.
5. Perceived as a higher quality, newer, better maintained area than other condo complexes that are close to Polaris like Carriage Oaks, Worthington Woods, and Worthingglen that are located off Sancus.
6. The complex recently settled with it's insurance company on a hail damage settlement and will be getting new siding and roof that will make the complex look even better.
Drawbacks: No Club House or Pool. Also, the traffic can get a little heavy at times although this hasn't seemed to be too big of a factor for most residents.
I have prepared a status report on what is currently available, under contract, and sold since 1/1/2006.
Continue reading Parkview Northeast Condominiums *Status Report* »
Comments (2)
Posted by Mike Parsons
September 19, 2006 at 10:03 PM
Old Towne East was one of Columbus's first neighborhoods and contains homes built as early as the 1830's and represents over 50 architectural styles. They were the homes of industry barons, bankers, architects, mayors, and legislators who shaped the city's future.
Old Towne probably has the most beautiful architecture in the city and has been a hotspot for trend setters and renovators over the last 20 years. You can't really find large 1800's mansions, carriage houses, original stained glass, and magnificent woodwork in hardly any other communities besides German and Victorian Village which carry twice the price tag. With prices typically much more competitive than German Village and Victorian Village the neighborhood has found quite an audience. There is still a crime element there and isn't as commercially developed with shops and restaurants as the Short North. The neighborhood streets tend to have pockets of nice areas. If this area interests you I would encourage you to use this map to drive through and take the tour. It is located just West of Bexley and provides a great diverse urban enviroment just East of Downtown. See what this vibrant area has to offer. For more info you can go to http://www.oldetowne.org
Posted by Mike Parsons
September 11, 2006 at 06:21 AM
The Worthington neighborhood traditionally known as Worthington Estates has appreciated very well compared to other areas in Columbus, as well as other areas of Worthington. This is not due its breathtaking architecture or new inviting floorplans. This neighborhoods location is what continues to carry it past its competitors.
The Worthington Estates/Worthingway/Olentangy Hills area is bordered by WIlson Bridge Rd. on the North, High St. on the East, the Olentangy River on the West, and Highgate on the South. This neighborhood is one of the few around where children can walk to elementary school, middle school, and high school. This benefit alone is the significant demand driver. Worthington schools hold top state rankings. The neighborhood also borders the Olentangy River bike trails which offer neighborhood access to scenic walks along the river through the parks. The parks are extremely safe, large, and well maintained by the city. Most locations in the neighborhood are a bike ride to Old Worthington shops and restaurants, the Worthington Pool, and the Worthington Community Center. Worthington Estates tends to attract well to do families that could many times afford a more expensive home, but enjoy the humble atmosphere and unmatched amenities.
The area is currently undergoing a turnover from it's original 1960's owners to a younger family oriented neighborhood. We are seeing a premium put on homes that have been cosmetically updated and expect to see many new renovations and additions in the coming years. You can't find Location like this in a newly built neighborhood in Southern Delaware County! Developers today could never match the neighborhood amenities this close to Central Columbus.
Posted by Mike Parsons
September 07, 2006 at 04:16 AM
Columbus Blue Jackets General Manager Doug Maclean pulled his luxury residence from the market last week. The home is located in a private nook on prestigious Tucker Drive in Worthington.
The 3500 square foot home was renovated by well respected builder Bill Owens. The home featured a 1st floor master suite, wonderful gourmet kitchen, private wooded lot, 2 laundry rooms, and grand foyer. The 4 bedroom 4.5 bath home was originally listed at $789,000 and was reduced to $725,000 before being recently withdrawn from the market.
Posted by Mike Parsons
September 02, 2006 at 03:58 AM
Well respected Clintonville Real Estate Agent Pat Kearns Davis and husband plan to build a home almost 5 times the average 2230 sq ft on the street. The cost to builid and home acquisition is also expected to be 5 to 6 times the average home on the street. The home will span over 11,000 sq ft. and two lots.
Neighbors have received the home with mostly positive reactions. The home is located on the corner of Croswell and Olentangy Blvd. with a great location close to Whetstone Park. The knock down and build concept that has been prevalent for CEO's and public figures in Bexley and Upper Arlington, is now coming to Clintonville.
Posted by Mike Parsons
August 18, 2006 at 07:20 PM
The answer is, It Depends! Location. Location. Location. 3-5 years ago condominium complexes like Bethel Village (corner of Sawmill and Bethel) appreciated a little more per year than many well-to-do, surrounding single family homes. Due to economies of scale, and developers finding greater profit in condo development, we have seen many new condominium projects built on Columbus's North arch and downtown areas. This has transplanted a lot more condo inventory into the marketplace in the last couple years. When supply rises, demand falls. When demand falls, price appreciation will slow.
Continue reading Condo vs. Home, What is the best investment? »
Posted by Mike Parsons
August 09, 2006 at 04:48 PM
Whether you are a longtime Columbus Resident or someone considering a move to the Greater Columbus area, school district should be an important consideration for you. Communities in Columbus that have superior schools have shown superior price appreciation. I have listed each main Columbus School District's report card as reported from the State of Ohio.
Continue reading Columbus School District Rankings »
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