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The Sky Isn't Falling In Central Ohio

In September I wrote about the average sale prices in central Ohio for the past 5 years. There is a misconception that the “sky is falling”, brought to us by the national media. Maybe it IS happening elsewhere, but not here in central Ohio .

True, sellers who purchased 2-3 years ago may not be able to sell for the price they paid. Plus, if they put little or no money down, they will have to come up with money to pay their closing costs. If they don’t have that money, then they will be in trouble.

However, for those sellers who purchased a number of years ago, who have a fair amount of equity in their home, who didn’t use their home as an ATM with hefty equity loans … they should be OK.

I’ve updated the graph that I published in the September, to represent year-end November average sales dollars (click on the thumbnail to view). I calculate the data by using school districts since buyers often select homes that way, plus, since our zip codes and/or city boundaries are “odd” and thus meaningless, using school districts gives the most comprehensive data.

Although this Fall has “seemed” rather soft, we’re still not seeing any declines in the average prices versus 2003, except for one district. There have been declines since 2005, but not substantial ones - generally just 2-5 thousand dollars. What’s the take on this info that sellers and buyers should consider?

Sellers who don’t have enough on-hand cash or equity to pay closing costs, should avoid selling if they can. Use the time to pay those bills, and put some aside in savings.
Sellers with equity can put their home on the market, just be agreeable to pricing your home realistically. Don’t get greedy or your home will languish on the market. A home that’s priced even only $5000 over the market is apt to just sit.
Buyers … if you think you’re going to wait for the market to “bottom out”, you’re missing the boat. You could be enjoying living in your home and benefiting from any tax deductions you might earn versus renting. Plus, interest rates are still very reasonable and loans are still available for those with good credit.

By school district, here are the percent changes of 2007 vs 2003: Buckeye Valley +24%; Olentangy (west of Rt 23, Powell area) +20%; Upper Arlington +20%; Worthington +17%; Dublin +14%; New Albany +9½%; Olentangy (east of Rt 23, Lewis Center area) +9%; Hilliard +7%; Marysville +7%; Gahanna +6%; Delaware +5%; Westerville +4%; Big Walnut -2%;.

For more central Ohio real estate information, visit my blog at ReesesPiecesOfRealEstate.com.