Solon Market Report - Year in Review 2016
The following is our 8th annual year in review for Solon Ohio real estate.
Here, we will provide a comparison between 2016 and the previous two years and offer commentary. We will also be including a breakdown of specific price points.
Year # of Homes Sold Ave. Sales Price Sales Price/List Price
2016 335 $309,712 96.35%
2015 303 $310,027 96.24%
2014 269 $327,567 96.55%
LUXURY HOMES ( sale price over $500,000 )
2016 48 $656,169 96.26%
2015 36 $672,009 95.97%
2014 38 $712,285 95.21%
2016 SALES - FIRST HALF VS. SECOND HALF OF THE YEAR
FIRST HALF 166 $314,622
SECOND HALF 172 $315,473
PRICE POINT BREAKDOWN OF ALL 2016 SALES ( 2015 sales in parenthesis )
$0-99,999 = 7
$100,000-199,999 = 82 (82)
$200,000-299,999 = 110 (90)
$300,000-399,999 = 62 (51)
$400,000-499,999 = 27 (38)
$500,000-599,999= 16 (12)
$600,000-699,000 = 20 (12)
$700,000-799,000 = 10 (9)
$800,000-899,000 = 1 (0)
$900,000-999,999 = 0 (1)
$1,000,000 + = 0 (2)
2016 was a great year for the Solon real estate market.
Here are some things we can deduct from the statistics above:
1. More homes sold in 2016 vs. 2015.
2. Average sales price was slightly lower in 2015 than 2014.
3. The number of sales was fairly balanced throughout the year.
4. A well priced home will receive approximately 96% of asking price.
5. The luxury home market had a significantly better year in 2016 in terms of sales.
WHY WAS 2016 BETTER THAN 2015?
In simplistic terms, the increase in sales in the $200,000-$399,000 price range was the major difference, especially the $200,00-299,000 range. In fact, 2014 saw only 51 sales in this price range, so the dramatic increase over the last two years is quite amazing.
Young families continue to flock to Solon to take advantage of the top rated Solon Schools and the more moderately priced homes are attractive from an affordability standpoint.
In terms of the families moving to Solon from other area suburbs, many are either buying their first home or moving up from their starter home. These buyer typically don't want to spend more than $350,000 and the available inventories have been plentiful over the last few years.
The other significant price point was the $600,000-699,000 range, where we saw a modest increase in sales from the previous year.
Continued low rates, a decent economy and an increase in the stock market all factored into the increase in sales in 2016.
2017 MARKET OUTLOOK
First quarter sales will certainly be in line with last year as there are 36 homes currently under contract. There are fewer homes currently for sale now ( 71 ) than at this time last year ( 84 ) so the buyers on the sidelines are likely waiting for the new crop of homes to hit the market over the next 30-60 days.
It's hard to imagine the sub $300,000 market doing better in 2017, especially with a possibility of rates increasing. The determining factor may be available inventory over the next 3-4 months.
Homes will continue to sell for close to 96% of asking price. It certainly helps a seller is the home is properly priced and staged up front.
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.