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Inventory At All-Time Low

by The Schuman Team

Lack of inventory hurting the market.

 

I’m sure you’ve seen the headlines lately. If not, here are a few from national publications:

“Supply at 20 year lows”

“US Home Sales Fall As Record-Low Inventory Boosts Prices”

“Low Inventory Will Be Huge Challenge To Home Sales In 2018”

While it’s often been stated that timing the market is impossible, I could argue that now is the best time to sell if you want the highest price for your home.

STATE OF THE MARKET

The number of homes for sale in Solon and surrounding areas are at all time lows for this time of the year. By mid-March, we usually see 120-140 homes listed for sale in Solon. As of today, there are merely 69 active listings.

Here is a list of the number of active listings in east side suburbs:

Beachwood 30

Moreland Hills 35

Orange 10

Pepper Pike 49

Solon 69

WHY THE SHORTAGE?

Everyone in the industry agrees there is a shortage. While the specific reasons are up for debate, here are some thoughts:

  1. INVESTORS ARE HOARDING THEIR INVENTORY – Many investors who snatched up properties during the recession intended to rent the homes initially, then sell when the market improved. The investors aren’t selling.
  2. BABY BOOMERS AREN’T MOVING - Baby boomers typically downsize after their kids finish high school. Today, more are staying put because they can’t find another home that is smaller, cheaper, and nicer than the one they have now.
  3. PEOPLE LOVE THEIR HOME - Many homeowners have done a ton of updates over the years and are content with what they have.

WHAT THIS MEANS TO YOU

If you are considering selling your home in the near future, you will get a premium by selling now.  Even if you aren't thinking of selling , consider this. Is there a price that would get you to sell? If an agent brought you a buyer who offered more than you ever imagined for your home, would you take it?

Houses are flying off the market and the few lucky sellers in the market are taking advantage. I am baffled by the amount of money some of these homes are selling for, but that is simply a function of economics.

I only wish I was selling my own home this year, because I couldn’t imagine another time when inventories will be this low again.

Solon Ohio Year End Report - 2015

by The Schuman Team

Solon Sold homes

The following is our 7th annual year in review for Solon Ohio real estate.

Here, we will provide a comparison between this past year and 2014 and offer commentary. As an added bonus, we will be adding a new statistic this year, a breakdown of specific price points.

ALL HOMES

Year          # of Homes Sold        Ave. Sales Price   Sales Price/List Price

2015                      302                    $310,027                96.24%

2014                      269                    $327,567                96.55%

LUXURY HOMES ( sale price over $500,000 )

2015                       36                     $672,009               95.97%

2014                       38                     $712,285               95.21%

2015 SALES - FIRST HALF VS. SECOND HALF OF THE YEAR

FIRST HALF              128              $307,677

SECOND HALF           180              $309,176

PRICE POINT BREAKDOWN OF ALL 2015 SALES

$0-99,999 = 6

$100,000-199,999 = 82

$200,000-299,999 = 89 ( 2014 saw only 51 in this price point )

$300,000-399,999 = 51

$400,000-499,999 = 38

$500,000-599,999= 12

$600,000-699,000 = 12

$700,000-799,000 = 9

$800,000-899,000 = 0

$900,000-999,999 = 1

$1,000,000 +   = 2

 

Source: NEOHREX

 

COMMENTARY

2015 was a very good year for the Solon real estate market. The numbers were very similar to those of 2013.

Below is a list of 5 important things that the above statistics tell us:

1.     More homes sold in 2015 vs. 2014.

2.     Average sales price was lower in 2015 than 2014 due to an increase in sales in the $200,000-299,999 price point.

3.     The second half of 2015 saw a tremendous number of sales.

4.     A well priced home will receive approximately 96% of asking price.

5.     The luxury home market is fairly stable.

 

WHY WAS 2015 BETTER THAN 2014?

While total sales last year far exceeded sales from 2014, the numbers are a little misleading. The only reason for the large increase is due to the unusually high number of sales that occurred during the 3rd quarter in the sub $300,000 price points.

Basically, there were about 30 more sales in the $100,000-$300,000 price points just during this past summer. This was due to an influx of buyers likely moving to Solon for the start of the school year. Many were first-time buyers and move up buyers coming in from other cities.

Besides for this, the numbers for 2015 and 2014 were almost identical.

2016 MARKET OUTLOOK

The beginning of the year should be strong. There are fewer homes currently for sale now   ( 85 ) than at this time last year ( 94 ).  Low inventories increase demand, and there are a ton of buyers on the sidelines waiting for the right home.

When homes start to come on the market over the next 30-60 days, buyers will likely begin snatching up the good ones.

It's hard to believe the sub $300,000 market could be any better in 2016, but relatively low rates certainly makes things affordable for this segment of buyers.

Over the years, homes have sold for,  on average, approximately 95-96% of the list price and we don't see that changing. Homes that are properly staged and priced correctly up front will sell quicker and for more money.

Buyers would be wise to get pre-approved well in advance so they can jump on the right home when it comes on the market. With limited inventory, especially early in the year, you can't afford to hesitate.

What Is The Best Street To Live In Solon?

by The Schuman Team

We work with a lot of buyers relocating to the area and get asked this question a lot. The answer, however,  is rather complicated.

You see, as real estate agents, we are not allowed to be biased about certain areas. So we cannot tell you what city is best, what subdivision is best, or what street is the best. But is really doesn't matter.

You see, the question is so subjective. What is really meant by "best" anyway? If you ask 10 people who live in Solon what street is "the best", you will likely get 10 different answers. Most people are probably biased about the street they live on, so getting a good answer to this question is difficult.

BUT WE DON'T KNOW THE AREA

If you don't know anything about Solon, I totally understand you wanting to know what areas are popular. No one wants to make a mistake and end up living somewhere that won't make them happy.

So the most important thing is for you to define what you want. Do you want to live on 1 or more acres? Do you want to live near the highway or walking distance to schools? Do you want to live on a cul-de-sac? Do you want to live in the North, Central, or South part of town? How much do you want to spend?

Sometimes, defining the type of property you want will dictate which "streets" you end up looking at.

HERE'S WHERE WE CAN HELP

While we must be unbiased, we have lived here for 11 years and can certainly make your life easier.

We can tell you about certain areas of the city and the different developments. We can tell you when they were built, who the builder was, and specifics about what you will expect to find in the homes themselves.

We can tell you which streets are cul-de-sacs, if that is something you prefer. We can tell you which direction a certain street faces.  We can even send you a list of homes available so you can get feel for the homes.

We can also refer you to people who live in specific developments. While we aren't allowed to give our opinion to you, you are welcome to ask these folks anything you want.

When all is said and done, we can provide valuable assistance in finding the street that's best for you. And that will end up being the best street in Solon.

 

Displaying blog entries 1-3 of 3

Contact Information

The Schuman Team
HOWARD HANNA REAL ESTATE SERVICES
3550 Lander Road
Pepper Pike OH 44122
Dan: 216-346-3235
Amy: 216-403-9189
Fax: 216-456-2333