West Chester & Liberty Township, OH Real Estate Market Update
1st Quarter 2009 home sales compared to 1st Quarter 2008 for West Chester and Liberty Township, Ohio
In the 1st quarter of 2008 244 units were sold vs. 195 units in February 2009. This represents a decrease of 20.08%. This continues the trend of a large drop in closed sales when compared to the year ago period. Unit sales continue to be soft, with the overall economy and job security issues having a big impact on potential buyers. The 1st time homebuyers tax credit is influencing the activity in the under $225,000 market in a positive way.
| 2008 Units | 2009 Units | + or – |
| 244 | 195 | -20.08% |
(Just as a point of reference for how far home sales have fallen: In March of 2006 alone we closed 170 units vs. 195 units for the first three months of this year.)
The average sale price for the first quarter of 2009 was down 8.32% compared to the same period in 2008. As you can see in the table below, the average sale price in the first quarter of 2008 was $226,635 compared to $207,772in 2009. As I have said before, for there to be a stabilization of home prices and then at some point a return of appreciation, we will need to see a smaller supply of homes available for sale and also a lessening of the pricing presuure that is currently being applied by distressed property sales, such as bank owned homes and short sales. In many of the price ranges there remains a significant oversupply of homes for sale.
However, there are dramatic differences in what is going on in the different price ranges. If you are thinking of selling your home you must understand the market within the market that your home is in. Some of the price ranges have such an oversupply of homes for sale and others are much more in line with what might be normally expected.
| 2008 Avg Sale Price | 2009 Avg Sale Price | + or – |
| $226,635 | $207,772 | -8.32% |
Here is the article from the Cincinnati Enquirer detailing the Greater Cincinnati housing numbers:
Q1 home prices down 17 percent
By Lisa Bernard-Kuhn • lbernard@enquirer.com • May 12, 2009
Sale prices of single family homes in the region slid more than 17 percent in the first quarter – fueled by the sale of foreclosed properties and other discounted real estate, according to a national report released today.
In Greater Cincinnati and Northern Kentucky, the median sale price fell to $106,500, a 17.1 percent decline from the first quarter in 2008, according to data from the National Association of Realtors.
The median sale price is the point at which half the homes sell for more and half sell for less.
Nationally, the median sale price for a single family home slid to $169,000, down 13.8 percent from the first quarter of 2008.
Overall, sales dipped 3.2 percent from the year-ago period.
“I think we’re near a bottom, but we’re not there yet,” said David Resler, chief economist at Nomura Securities.
While prices could hit bottom as soon as this summer, he said, they are likely to remain stable and start edging higher slowly. But the nascent signs of recovery in the housing market could be short-lived if employers continue to lay off workers in bulk.
First-time buyers accounted for half of all purchases during the first quarter, and 134 out of 152 metropolitan statistical areas reported lower median existing single-family home prices compared to the first quarter of 2008.
The biggest drop, of more than 50 percent, was in Fort Myers, Fla. Prices fell 40 percent or more in Saginaw, Mich.; Akron, Ohio; San Francisco; San Jose, Calif.; Phoenix; Sarasota, Fla. and Riverside, Calif.
The biggest price gain, of more than 21 percent, was in Cumberland, Md. The only other metro area that saw a double-digit increase was in Davenport, Iowa, which saw the median price climb nearly 14 percent.
“We are very much in a bifurcated market with sharp differences between foreclosures and short sales on one hand, and traditional homes on the other,” said Lawrence Yun, chief economist for the national Realtors, in a release. “In many cases, homes are selling below replacement construction costs, which speaks to the great values in the current market.”
In the first quarter, short sales and foreclosures accounted for nearly half of transactions, weighing down median home prices in most markets.
Short sales occur when a bank or lender agrees to accept less that what is owed on a home mortgage. The discounted properties along with foreclosures sell for about 15 to 20 percent less than market rate homes, Realtors say.
Yun said the $8,000 tax credit for first-time buyers included in the economic stimulus package signed by President Barack Obama earlier this year should boost sales.
“We expect a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas,” he said.
The Associated Press contributed.
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