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RSS FeedIt's A Buyer's Market |
Oct. 10, 2006
We have all heard the media hype about the housing market. What I want to do is give you REAL information about home sales. The interest rates one year ago were 5.8%. They are currently at 6.3%. That is an awesome interest rate, and I am here to tell you that no matter how the stock market looks right now (improved), buying real estate in Northeast Ohio is a stable, solid investment of your money. You can also get a tax benefit from owning a home instead of giving money to your landlord every month and having nothing to show for it.
It IS true, that the market has corrected itself over the past year. Cleveland consistently, decade after decade, averages a 3% increased return on real estate. For a two year period, that percentage increased quite a bit. In some areas like Lakewood and Westpark, there was a 15% increase. So now there is a correction and people who are selling their homes are not making the same profits that were available for a short period of time. Homes are still selling and for a good price! This correction only makes things better for you as a buyer. Let’s look at 3 Bedroom 1 Bath home sales in Lakewood . I am using figures available on my computer listing and sales system from August 1 2005 to October 9 2005 and the same period of time for 2006.
2005: 58 Homes Sold Average Sale Price $184,360 Ave. Price Per Sq. Ft. = $102.00
2006: 44 Homes Sold Average Sale Price $179,943 Ave. Price Per Sq. Ft. = $99.00
This data tells us two things: homes are holding their value, but the same home that sold last year at this time, might be selling for about $4000 less this year. Doesn’t that help you as a buyer? Wouldn’t you rather pay $99/sq. ft. for a home than $102/sq. ft.? Again, these figures are just for Lakewood homes, and these homes fell into a certain criteria. I can analyze, other areas as well. For example, West Park, same time frames, same criteria:
2005: 55 Homes Sold Average Sale Price $126,358 Ave. Price Per Sq. Ft. = $93.00
2006: 42 Homes Sold Average Sale Price $123,940 Ave. Price Per Sq. Ft. = $86.00
We can analyze any area in Northeast Ohio and find you a home while the interest rates are still phenomenal. We are still in a Buyer’s Market. Two years ago there weren’t as many homes for sale and buyer’s had less to choose from. Now you have great interest rates, a sizeable number of homes to pick from in any price range, and the ability to get a home for less cost per square foot than before. It is worth considering.
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