Student Loans – Home Selling Prices Continue To Soar As Ohio Inventories Stay At All-Time Low
LAKEWOOD, Ohio – Even with spring underway and new homes expected to hit the market, real estate experts say home inventory remains at all-time highs.
New data of the National Association of Realtors revealed that pending home sales in February fell 10.6% from the same period a year ago.
As experts point out, this number can be misleading.
“Today these are historically low inventory rates,” Seth Task, president of Ohio Realtors, told News 5. “I look around Cuyahoga County almost daily. Yesterday there were 1,332 listings. active countywide of single family and condominiums. It’s incredibly low. Even last year and two years ago when we thought stocks were low, those levels were 3,000 and 4,000 properties per day.
Data from northeast Ohio shows similar trends.
Here in Ohio Ohio Realtors Data shows that the average home selling price in February was about 12% higher than a year ago, which is a difference of $ 22,570.
“A lot of people have been able to save a lot of money over the past year,” added Task. “We see a lot of cash transactions. “
Task also pointed to a lack of home construction due to the Great Recession, as well as higher numbers of first-time buyers and record mortgage rates as some of the driving factors of the current real estate market.
14 offers in one weekend
Four years ago, Zach and Ella Clifford bought their first home in Lakewood, after making an offer roughly $ 10,000 below asking price.
“We knew when we bought this house it wouldn’t be our home forever,” said Ella Clifford.
Fast forward to today, and the couple are in the process of relocating, having put their home on the market last month.
“Although we were hoping to stay here a few more years, now is the time to sell,” said Ella Clifford.
It only took a weekend of visits to the couple’s real estate agent, Seth Task, to sell their home, which involved more than 70 visits.
“We ended up having 14 offers, that was crazy,” said Ella Clifford.
In the end, they accepted an offer that was roughly $ 100,000 more than what they paid for the house in 2017.
“Our real estate agent called us after the first night of sightseeing,” Zach Clifford said. “It’s like ‘how much more to ask do you think?’ And it just kept going up. It was just crazy to hear the numbers come up.
The Cliffords plan to use the money they’ve earned from selling their Lakewood home for projects in their home as their family continues to grow with their 3-month-old daughter.
“We are so grateful that we decided to sell,” said Ella Clifford.
Help those who find it difficult to buy a house
In situations where multiple offers come in for a home, sellers usually choose the offer that increases their chances of closing quickly and easily.
“A seller is going to take something with the least risk, which is more cash or no appraisal eventuality or no inspection,” Task said. “Honestly, I feel terrible for FHA (Federal Housing Administration loan) buyers and buyers who have a 3-5% drop. They lose in multiple bid situations of 20 or more bids.
State Senator Theresa Gavarone, who represents Erie, Ottawa, Wood and parts of Lucas and Fulton counties, hopes to help level the playing field by proposing the Law on savings for first-time buyers.
The bill would allow first-time homebuyers to open a tax-deductible savings account to buy a home, with up to $ 5,000 for individual filers and $ 10,000 for joint filers each year. .
“I want people to make this American dream of owning a home come true,” Gavarone said. “With student debt and everything in between, it’s hard to accumulate that lump sum for a down payment. “
Meanwhile, CHN Housing Capital, the lending arm of CHN Housing Partners, announced a new type of mortgage, called The Believe Mortgage, which would address the lack of traditional real estate financing available to homebuyers of color, buyers with imperfect credit and moderate-income homebuyers (LMI) in Cuyahoga County.
“Homeownership is the greatest generator of generational wealth, and we believe homeownership should be within the reach of every family,” said Kevin J. Nowak, CEO of CHN Housing Capital, in a press release. “Here in Northeast Ohio, we’ve found that homeownership is not for every family, and we’ve created CHN Housing Capital to address that issue.”
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