Localism: Ohio

Food for Thought - Turning it Around

Thu, 04 Dec 2008 17:10:48 -0600

Many factors have caused the current economic turmoil and certainly the answer must be as complex. I certainly do not profess being an expert economist with all worldly knowledge of how the flow of money between banks and the fluidity of secondary mortgage markets effects the economy as a whole. In the housing market, however, it does not take a brain surgeon or a world class economist to understand the laws of supply and demand.

The lion's share of the answer has to focus on reducing total inventory of homes for sale, reducing poor quality inventory and increasing good inventory. I have become somewhat of an expert in the Cleveland, Ohio area in listing short sale properties and also selling bank owned properties. I have learned some valuable things:

•1. Banks must get better at accepting short sales and taking the hit now. I understand how a company's financials work; that publicly trade banks are accountable to shareholders, etc., but to save this quarter's P&L to next quarter's demise is just plain stupid. Case in point, I presented a short sale offer to a bank recently that took over three months to answer. The offer was $315,000 on a $325,000 list price. The bank got an appraisal for $305,000. The seller, who was relocated to Arizona with no protection package from his employer, bought the house for $345,000 three years ago could not afford the loss. The bank demanded the seller take on a personal note to remove the lien. They basically are forcing the seller into bankruptcy as he does not qualify for bankruptcy without the house note and since his credit is already shot there is no benefit to him to take on the note. The buyer walked away and now the bank will incur massive expenses to foreclose, carrying costs, possible vandalism and a bank owned tag when they eventually get have sell it. I guarantee that the bank just threw away over $100,000, no doubt about it. That will be an actual cash loss. It will be months and maybe over a year from now. The bank have their $300,000, lend it to someone else, and MAKE MONEY instead of throwing it away. I don't care the reason, on paper or otherwise, it was an awful decision.

•2. Banks must have looser guidelines on restructuring variable rate mortgages at today's rates for those borrowers that were current on their payments prior to a rate adjustment. I understand that to qualify for new financing banks require higher credit scores and more down payment unless it is an FHA deal. There are some other programs out there, but for the most part lending is tight. The government should provide some additional protection for banks to reset an amortization table if the borrower's debt ratios and new payment still meet acceptable standards. They must be able to ignore credit scores caused by late mortgage payments. Let's give these homeowners that were able to perform the ability to perform and keep these properties off the market and out of foreclosure. Let's stop the talk of refinancing homes at today's market value vs. what the buyer paid and stop talking about taking losses today that may never have to be incurred. If the borrower eventually cannot afford the house, it will foreclose farther down the line and not in today's market where we are experiencing the highest level of foreclosures in history.

•3. Banks must get better at securing, improving and disposing of their properties. Again, it's not rocket science. It takes these banks and asset managers WAY too long to get these houses on the market. They need to do a better job at protecting these properties by working harder to get a deed in lieu of foreclosure, getting the borrower's assistance in listing for short sale, securing them IMMEDIATELY after the confirmation of sheriff's sale and getting them on the market right away! I have buyers in some areas waiting months for foreclosed properties to be listed. Not just investors, but normal buyers too. After many calls to many offices and personnel, I am still told I must wait for it to be listed by many institutions. I'm talking six to nine months sometimes. I'm fine waiting for the listing, but LIST IT ALREADY! Properties get vandalized, landscaping overgrows, plaster and tape lines crack, rodents and insects infest, and on and on, adding to the loss that the bank (and now the TAXPAYER) must endure. I suggest that part of the Bail-Out funds be used to assist banks to hire and/or subcontract more personnel to more quickly and effectively dispose of these properties. Also, I suggest that Federal short term loans be provided to banks to improve properties and make them more sellable. The funds can be paid back to the government at closing but will create better inventory in the marketplace, reduce market time and increase home values.

I know I don't have all the answers, but I hope I have provided food for thought....and hopefully action.

Ohio November Market Report

Thu, 04 Dec 2008 16:01:48 -0600

The November Market Report in Ohio for single family, residential homes in Montgomery and Greene counties shows minimal changes. The average sale price / listing price changed 1%. In November 2008 versus November 2007, it now takes 12 days longer to sell homes. The average days on market in November 2008 was 112, which is 34 days slower than the Real Living Realty average days on market.

NOVEMBER 2008

Homes Sold - 365
Average Bedrooms - 3
Average Square Footage - 1,597
Average Listing Price - $107,317
Average Selling Price - $101,844 (95% sale price/listing price)
Average Days on Market - 112 (34 days slower than the Real Living avg. days on market)
Homes Sold Price Range $2,900 (in Dayton E of Wayne) - $800,000 (Kettering-W of 48)

NOVEMBER 2007

Homes Sold - 545
Average Bedrooms - 3
Average Square Footage - 1,629
Average Listing Price - $123,833
Average Selling Price - $119,616 (96% sale price/listing price)
Average Days on Market - 124 (12 days difference to November 2008)
Homes Sold Price Range $3000 (W Dayton-S of Third) - $1,070,000 (Beavercreek N of 35)

For more information on the market in the Dayton, Ohio area and buying or selling contact Christina today!

Christina Asad Edwards, REALTOR
2006 & 2007 Sales Masters Top Agent
Christina.Asad@RealLiving.com
www.DaytonOhioHouse.com
mobile or text 937-205-4741 office 937-573-0082
Real Living Realty - #1 in OHIO!
Realty, Mortgage, Title, Relocation

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Mortgage Rates to be cut to 4.5%???

Thu, 04 Dec 2008 11:36:58 -0600

Mortgages to be cut to 4.5%?

I just watched this video posted this morning from a popular news show. If the rates do go down to 4.5% for new purchases on homes do you think this will stimulate long term growth in the housing market?

The first question is whether it will happen at all. From what the video says this is a proposal that the lobbyists are trying to get passed. In essance, this is a bailout plan for new construction and home builders. In Clermont County Ohio, Cincinnati Ohio and other surrounding suburbs around here the question isn't whether people can afford the new home of thier dreams, it is whether they can sell thier current home that has been sititng on the market for a long time. If the builders around here like Capital Custom Homes are any reflection on the real estate market as a whole they are not seeing much activity at all. The land listings that we have are sitting with little or no activity.

As we look forward to a more positive 2009 I hope the policy makers in Washington will do what they can to support the purchase of homes from a first time homebuyer perspective. I think once this part of the market is stimulated and can grow again we will then see the results trickle throught the rest of the system.

Thank you for reading our blog!

Derek Tye has been an influential Realtor in the Greater Cincinnati Ohio Market for over 4 years. For more information about our Greater Cincinnati Ohio Real Estate services we offer please call us at 513-732-2720 or visit our website at www.CincyOhioHomes.com . Don't miss our Testimonials!

THANK YOU TO THE HUSBANDS, WIVES, AND SIGNIFICANT OTHERS OF REAL ESTATE AGENTS!

Thu, 04 Dec 2008 11:30:29 -0600

Any person who is a life partner with a realtor or is a son or daughter to them truly knows how much work a good real estate professional does.

So I'd like to publicly recognize my husband Lou, and my daughter Erin, but I'll try to be brief!

My husband Lou (for 24 years) has always been my "go to guy". He has supported me in real estate for over 22 years and not once has he ever doubted my ability to make it in this business. He's also helped with anything I ask of him.

LOU CAN YOU:

Help me put up a few extra open house signs?

Take the sign out of someone's yard?

Put a sign in someone's yard? (the ground is really hard)

Look something up on the computer for me? (on the road and before blackberrys)

Throw a quick dinner together? (I'll tell you how to do it)

Snowplow the driveway so I can get out?

I could go on and on but I think you get the idea!

And to my precious daughter Erin (14):

ERIN CAN YOU:

Get dinner started?

Takes some notes for me while we are in the car?

Staple this printout to that flier?

Stay out of trouble and do really well in school? (She does both)

GOD HAS TRULY BLESSED ME WITH THESE TWO PRECIOUS PEOPLE! SO...

To Erin and Lou, thank you for everything,my love is yours forever!

Can Hurricanes be Stopped by Akron, Ohio?

Thu, 04 Dec 2008 11:24:23 -0600

A Russian professor at the University of Akron, Ohio has actually patented a way to diffuse huricanes with supersonic jets. As in the diagram below, two jets would fly around the eye of the hurricane at supersonic speeds, creating sonic booms which over time would dissipate the storm.

Their idea is essentially to disrupt one or more parts of the hurricane machine by the use of sonic booms - the conical shockwaves which trail behind objects moving faster than sound.

The simplest and easiest way to produce a large sonic boom at present is to use a jet fighter.

Will it work? I hope they can find out soon. Wouldn't that be incredible to stop devastating storms like Ike? GO ZIPS!