Northeast Ohio Home Sellers Guide

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  • A HOME OWNERS GUIDE TO THE

    NORTHEAST OHIO REAL ESTATE MARKET

    SPRING 2015

    EDITION

    Lisa Humenik, RE/MAX Crossroads

    N

    NortheastOhioRealEstateSource.com

    Facebook.com/AmazingNortheastOhioHomes

    Amazing

  • Crossroads Properties

    Lisa Humenik

    About the Author:

    LISA HUMENIK, Realtor, RE/MAX Crossroads

    Lisa Humenik is a real estate professional (REALTOR) at RE/MAX

    Crossroads Properties helping clients buy and/or sell their home

    and find the perfect new place or investment to meet their

    needs. Her clients include residential home sellers, investors, and

    new and move-up buyers. Home sellers enjoy state-of-the-art

    marketing services to assist them in the sale of their home

    including internet, video, social media, print, and mobile

    marketing to expose their home to the most buyers. Lisa is the

    author of the NortheastOhioRealEstateSource.com blog covering

    real estate trends in the Northeast Ohio suburbs. Lisas Facebook

    fan page, AmazingNortheastOhioHomes, has over 1,200 fans.

    Lisa has been practicing real estate for over ten years and sells

    over 50 homes per year. She also holds a BBA in Marketing and

    Quantitative Business Analysis from Cleveland State University.

    Lisa can be reached at (440)476-4959 or via email at

    [email protected]

    RE/MAX Crossroads

  • CONTENTS

    Lisa Humenik, RE/MAX Crossroads * (440)476-4959* AmazingNortheastOhioHomes.com

    1. NATIONAL HOUSING MARKET SUMMARY

    2. NORTHEAST OHIO MARKET TRENDS & DATA

    Home Prices Homes Sold Homes for Sale & New Listings Market Inventory REO & Short Sale Trends Market Data by Suburb

    3. MORTGAGE RATES

    4. 2015 EXPERT MARKET PREDICTIONS

    5. SELLING A HOME IN 2015

    6. REASONS TO BUY A HOME IN 2015

    7. HOW TO INCREASE YOUR SALES PRICE

    8. TOP HOME SELLING STRATEGIES FOR 2015

    9. SMART HOME SELLERS

    APPENDIX Market Summaries for Cuyahoga, Medina, and Lorain

    Counties thru 1Q, 2015 DATA

    This report covers Single Family home sales in the Greater Cleveland area real

    estate market (Cuyahoga County). Data for Medina and Lorain Counties are

    shown in the Appendix. Specific data is available for any local suburb on

    request.

  • Lisa Humenik, RE/MAX Crossroads * (440)476-4959* AmazingNortheastOhioHomes.com

    NATIONAL EXISTING HOME SALES REPORT (3/23/15)

  • 1Q, 2015 NATIONAL HOUSING MARKET TRENDS

    Lisa Humenik, RE/MAX Crossroads * (440)476-4959* AmazingNortheastOhioHomes.com

    National 1Q, 2015 Market OverviewA just released report, the Health of Housing Market

    (HoHM) Report (Nationwide), states the US housing

    market is at its healthiest levels since the indexs creation in 2001. The report showed that the 4Q, 2014

    ended with the highest indicator score in over 15 years

    at a score of 109.8. Employment, demographics, the

    mortgage market, and housing prices are all used to

    evaluate the health of each market. The report

    ranked the top 10 healthiest housing markets and

    ranked the Cleveland area on the Top 10 List, as #2.

    The most recent Pending Homes Sales Index from the

    National Association of Realtors revealed that homes

    going into contract in February increased to their

    highest level since June 2013. The Pending Home

    Sales Index is a leading indicator for the housing

    sector, based on pending sales of existing homes. A

    sale is listed as pending when the contract has been

    signed but the transaction has not closed, though the

    sale usually is finalized within one or two months of

    signing.

    Realtor.com data shows that supply is not keeping

    pace with surging demand. The are expecting rising

    prices to persuade those who may be on the fence

    about listing their homes to do so in the coming

    months, leading to closer parity between supply and

    demand. In addition, Fannie Mae's March 2015 Housing Survey, also showed signs of a seller's market.

    The percentage of respondents in Fannie Mae's survey

    who said they believe now is a good time to sell

    reached an all-time survey high of 46 percent.

    Source: Business Insider (3/30/2015)

    Source: Business Insider (3/30/2015)

  • NATIONAL HOUSING MARKET TRENDS

    Lisa Humenik, RE/MAX Crossroads * (440)476-4959* AmazingNortheastOhioHomes.com

    A big reason for the bright outlook for

    the housing market is improved job

    prospects for those ages 25 to 34,

    commonly known as millennials.

    Steadily rising rents are also expected

    to drive more buyers to the home

    market in 2015. Rents have risen by

    almost 11 percent over the last three

    years and jumped by an average of

    about 3.6 percent in 2014 alone.

    "Pending sales showed solid gains last

    month, driven by a steadily-improving

    labor market, mortgage rates hovering

    around 4 percent and the likelihood of

    more renters looking to hedge against

    increasing rents," said Lawrence Yun,

    chief economist for the NAR. "These

    factors bode well for the prospect of an

    uptick in sales in coming months.

    However, the underlying obstacleespecially for first-time buyerscontinues to be the depressed level of

    homes available for sale."

  • Crossroads Properties

    WHERE ARE HOME PRICESHEADING IN THE NEXT FIVE

    YEARS?

    Real estate and financial professionals put

    tremendous value in the Home Price Expectation

    Survey. Every quarter, Pulsenomics surveys a

    nationwide panel of more than 100 economists,

    real estate experts and investment & market

    strategists about where prices are headed over the

    next five years. They then average the projections

    of all 100+ experts into a single number. The results

    of their latest survey:

    Nationally, values appreciated by 4.8% in 2014

    Cumulative appreciation will be 23.5% by 2019

    That means the average annual appreciation will

    be 3.6% over the next 5 years.

    Even the experts making up the most bearish

    quartile of the survey still are projecting a

    cumulative appreciation of almost 15.1% by 2019.

    This survey is a fair depiction of future values.

    WHERE ARE HOME PRICES HEADED OVER

    THE NEXT 5 YEARS?

    Lisa Humenik, RE/MAX Crossroads * (440)476-4959* AmazingNortheastOhioHomes.com

  • NORTHEAST OHIO REAL HOME SALES

    LOOKING BACK AT 2014 AND WHAT IS AHEAD FOR 2015

    If you have been watching the local real estate market

    in the last few years waiting for things to return to

    normal, the time has come. If you have been waiting

    for the right time to sell your home (or buy a new one),

    this report should guide your on what to look for in the

    local Greater Cleveland real estate market this year.

    Today, the housing crisis is in the rear window and

    many positive trends that began in the last 18 months

    have continued with a decline in acceleration.

    As we begin the 2015 home selling season, many

    important trends have emerged in the local and

    national real estate market which will affect home

    sales and prices this year. This report will focus on

    Northeast Ohio real estate market (primarily Cuyahoga

    County west suburbs) with the national results and

    trends highlighted as they effect the local market. All

    Real Estate is Local... so lets take a look at whats happening in Northeast Ohio!

    Lisa Humenik, RE/MAX Crossroads * (440)476-4959* AmazingNortheastOhioHomes.com

    2014 vs. 2013

  • 2014 Market Summary

    The selling price of area homes has continued to

    rise since 2010. In Cuyahoga County, single family

    home prices in 2014 were up 2.5% from the prior

    year. In June last summer, the average sale

    price in Cuyahoga County reached $158,000,

    which was the highest level they have reached

    in 6 years (since July 2008), up 30% since 2008. All

    the key indicators show that 2014 was a year of

    continued market recovery.

    1Q, 2015 Market Summary

    The Average single family home Sale Price for 1Q,

    2015 is $130,000 up 4.8% from 1Q, 2014. In

    addition, the average List Price is up 9.4% to

    $198,000 county wide. The median sale price

    (most common) was $107,000 up 4.9% from 2014.

    According to Nationwides recently unveiled,

    Health of Housing Market (HoHM) Report, the US

    housing market is at its healthiest levels since the

    indexs creation in 2001. The Cleveland metro

    area was ranked in the top ten in the United

    States, ranking at #2!

    CUYAHOGA COUNTY - HOME PRICES

    Lisa Humenik, RE/MAX Crossroads * (440)476-4959* AmazingNortheastOhioHomes.com

    Cuyahoga County 5YR Single Family Home Price Trend (2009-2014)

    Cuyahoga County Single Family Avg For Sale & Sold Price (last 13 mos)

  • CUYAHOGA COUNTY - HOMES SOLD

    2014 Market Summary

    The number of homes sold in 2014 was down

    slightly by 411 homes, or 3.5% overall (versus

    2013), but last June had the highest monthly

    sales in 5 years. However, the REAL story is

    buried in the numbers. The sales of non-distress

    homes (non-short sale/REO) were up

    dramatically! If you look at home sales

    (without short sales), the non-distress home

    sales were up 27.5% over 2013. The non-

    shortsale inventory also increased 24.5 with

    prices remaining neutral. This indic