Clues to the Foreclosure and Housing Bubble Mess

Many of us have spent time scratching our heads about the housing bubble and the foreclosure issue. Mortgage lenders themselves were not the only ones involved in creating this mess. For example, if you got an overvalued loan from a predatory lender, how and more importantly why did the appraiser sign off on that loan?

If you live in an area where housing prices skyrocketed, how did the homes continue to get past an appraisers eye at so much over the 'last home sold' amount?

This article by David Cho in today's Washington Post does not surprise me, probably will not surprise you. But it does give some specific insight, due to comments from a mortgage appraiser with a company called New Century, who talked about the pressure she and other apppraisers were under to look the other way and sign off on appraisals for 'bad loans.' Peace Out - 3C

Cuyahoga County Home Sales: Old Brooklyn

This is my last update of home sales for the day. It covers zip code 44109. It includes the portion of Old Brooklyn near State and Broadview Roads as well as the area near Spring Road and route 176:

22 Single Family Homes sold in March between the prices of $19,900 and $140,000. They were on the market an average of 74 days -- again, not long, just a bit over two months. The average Ask Price was $79,093 and the average Sale Price was $74,583. The average amenities for the sold homes were: 3brs, one bath and a two car garage. There were no condo sales in March.

On the market now: 179 Single Family Homes and 5 Condos (and one two family home misplaced in the condo section!)

***NOTE: if only five homes sold and there are 179 on the market with owners wanting to sell, there are things to take into consideration. A Realtor® colleague in Michigan came up with a terrific list of things that might be hard to hear, but if your home is up for sale, it's worth a read. I'm going to re-link it again here. Peace Out - 3C

The John V. Oblak Power Transfer Station is For Sale

I do not plan on putting up my listings here on my blog; but this is such a unique property, I wanted to feature it. In 1924 the trolley cars were running strong in Cleveland, and this building was one of the power transfer stations scattered around the City, helping to keep the trolleys running.

I love the fact that the re use of this building has been for a bronze sculptor and his crew. Ron Dewey is a sought after bronze artist who has life-size and larger than life sized pieces around the country. Here in Cleveland, he is the creator of the bronze ball player at Jacobs Field, and was commissioned to do bronze statues of Ben Sefanski and his wife (on the corporate headquarters property for Third Federal Savings and Loan). It's a bustling workplace, also used as a living space by one of Ron's workers. I guess the time has come for him to consolidate two work studios into one....and this is the smaller of the two. So it's for sale! There is even a 15 ton crane inside the building that adds spectacular architectural detail you don't always find. Anyway, I am enclosing a link here so you can view more information about this brick beauty of a building. Peace Out - 3C

(photo taken by Carole Cohen 2007©)

Homes Sold February 2007 For Cleveland Ohio's West Side...Part One

It's the weekend, and February is history, so it must be time for sales stats. Here is information on the City of Cleveland West Side sales figures for February 2007 - and I am comparing them to February 2006 information. Our computer system breaks the areas up into four sections. I will do two sections here and two in the next post. The first section includes but is not limited to: Kamm's Corners, and homes South of Puritas and West of 130th.

February 2007: 21 Homes sold with an average time on the market of 100 days. Average Ask Price was $126,286, the Average Sale Price was $122,027. The Average Sale Price Per Square Foot was $85/sf.

February 2006: 17 Homes sold with an average time on market of 74 days. Average Ask Price was $109,199, the Average Sale Price was $105,041. That averaged out to $85/square foot.

The next area includes but is not limited to: the Baltic Road area, and homes between Lorain and Puritas.

February 2007: 28 Homes sold with an average time on the market of 78 days. Average Ask Price was $65,178, the Average Sale Price was $61,330. That comes to $49/square foot.

*There are 289 homes for sale right now in this area.

February 2006: 27 Homes sold and were on the market an average of 74 days. Average Ask Price was $71,962, the Average Sale Price was $68,860. That comes out to $50/square foot.

*There are 404 homes for sale in this area right now.

Volume of Homes Sold Nationally Rose 3% In January 2007

The National Association of Realtors (NAR) reported some statistics regarding January home sales. It's the good news and not so good news scenario. First the good news: the volume of homes sold rose 3 % in January 2007 - the largest monthly percentage increase in two years. These figures are for already existing or previously owned homes sold. Okay and now the other news: the median price of those homes sold in January dropped to $210,600 which is apparently a 3.1 percent drop in median sale prices from January 2006. So more homes sold, that means people are still buying, but it also means it's still a buyers market and prices for buyers are better than they were a year ago.

I think it also means if you have owned your home a while, you can probably still expect a nice return on your investment if you decide you want to move. However, if you bought recently and are not forced to sell (new job, relocating, etc) then please wait, it's probably not the best idea to list your home at the moment. I think my rule of thumb still holds: if you want to move, or have to move, list your home and price it well and it will sell.

Keep in mind, these are National statistics and as always, real estate is local. Peace Out - 3C

Northeast Ohio Housing Market Trends in 2007

The computer listing service on the web those of us in the business utilize (NORMLS) gave us statistics on homes and condos sold in all of Northeast Ohio since 2007 began. This means Bratenahl, Medina, Avon Lake, Cleveland, Parma, the whole ball of wax. Here is some data:

• Homes and Condos sold, on average, after three months on the market.
• 5,474 new homes were listed for sale - up 67% from the number listed a month earlier
• 692 condos were listed
• 1,253 homes sold - 42% of the housing on the market sold
• 165 condos sold - 27.4% of the condos on the market sold
• 2007: Average Sale Price for single family homes in NE Ohio was $154,125 (same time frame in 2006: Average Sale Price was $160,699)
• 2007: Average Sale Price for condos was $138,914. (same time frame in 2006: Average Sale Price was $155,190)

So yes, the average home and condo sale price is down from the beginning of 2006. Peace Out - 3C

Cuyahoga County Condo Sales: Shaker Heights Condos Sold

Today was inspection day on a home sale in Shaker Heights. My clients are moving here from another State to accept jobs at Case Western Reserve and that alone makes me happy - it's great when people relocate to the Cleveland area. Anyway, the inspection took a few hours, as usual. The inspector does two things that are really important when you buy a home. 1. Look for any major issues and 2. help with his/her expertise on how to maintain your furnace and other mechanicals. My clients are first time home buyers so it's always good to learn how to keep things running well to keep from having repair costs in the future. ASHI (American Society of Home Inspectors) inspectors have a lot of knowledge under their belts - this inspector was no exception.

Anyway, tooling around Shaker is always fun, it's a gorgeous City. So I decided it's time to continue the condominium market trends discussion with results in Shaker Heights condominium sales for 2006 - comparing them to 2005 sales. Here is what I came up with: condo sales held steady both years. Here are the results:

2005: 65 condo sales and they were on the market an average of 97 days, or just over three months. Sales ranged from $117,144 for an efficiency condo to $699,167 for a 3 BR, 2 1/2 Bath condo on South Park Blvd. The average Ask Price was $121,926 and the Average Sale Price was $117,144.

2006 to Present: 66 condo sales from $19,900 to $596,900. Most of these condos were also on the market for just over three months (an average of 93 days) The Average Ask Price was $ $152,890 and the Average Sale Price was $145,328.

For both years, the average sale was for 2BR/2Bath condos with 1 car garages. I've talked with Realtors® from other states and they said their condominium sales were doing well - I'm inclined to agree with them as far as these Shaker Heights results are concerned. For information on current condominiums on the market, check out my website. (There are 82 condos available right now in Shaker). (Photo courtesy of Shaker City website. Peace Out - 3C

How are Cuyahoga County Condo Sales? Part One: Tremont, Ohio City and Cleveland's Near West Side

I was cruising around on my favorite Ohio Forum, and I saw a thread talking about condos and the housing market. Someone asked how condos and homes were appreciating in price. I realized I wanted to focus on condos and find out for myself. So this is the first leg of my search, comparing condominium sales in 2005 to 2006 for the Near West Side, which includes Tremont and Ohio City. There are quite a few condo complexes to choose from in this part of Cleveland. So let's get started.

2005 : 95 Condos Sold. Sale prices were all over the map: $14,000 to $499,900. How long did it take for these condos to sell? An average of 212 days. The Average Ask Price was $242,338 and the Average Sale Price was $238,836. On average, the condos that sold in 2005 had 1444 Sq. Ft., 2 BRs, 2 baths and a one car garage. Next?

2006: 52 Condos Sold. Again, sales prices were all over the map: $25,325 to $459,740. How long did it take for these condos to sell? An average of 151 days (fewer sold, but the ones that did were on the market for a shorter time). The Average Ask Price was $213,663. The Average Sale Price was $213,515. Your eyes are not deceiving you, that is just barely $100 difference between the average price the sellers wanted and the price the buyers paid. On average, the condos that sold had 1374 Sq. Ft., 2BRs, 2 baths and a two car garage.

***The average price per square foot in 2005 was $178/Sq. Ft. And in 2006, $156/Sq. Ft.

Want to buy a condo in this area? There are 120 for sale right now. Peace Out - 3C

(photo courtesy of OhioCity.com website)

Here's Luther Vandross Serenading A House Is Not A Home

Strongsville, Berea and Middleburg Heights Homes Sold So Far in 2007

City of Berea stats tell us that there are 7,449 housing units within Berea's city limits. And yes, some of them have sold since the beginning of this year. This post will include data for Berea as well as Middleburg Heights and Strongsville. The following information includes homes sold through area brokerages, which means the data appears on our Northern Ohio Multiple Listing Service (NORMLS) computer website.

Berea: There have been eleven homes sold since January 1, 2007. The sales ranged in price from $58,250 to $250,000. The average number of days on the market (DOM) for these homes was 71. The average Ask Price was $120,663. The Average Sale Price was $109,284. The average amenities included in the homes that sold were: 1,734 Sq. Ft., 3BRs, one bath and a two car garage.

Middleburg Heights: There have been seven homes sold since January 1, 2007. The sales ranged in price from $85,000 to $207,000. The average number of DOM was 73. The average Ask Price was $162,314 and the Average Sale Price was $148,842. Average amenities in the sold homes in Middleburg Heights included 1,517 Sq. Ft. of finished living space, 3BRs, one bath and a two car garage.

Strongsville: 25 homes have sold since January 1, 2007. The sales ranged in price from $118,915 to $411,000. The average number of DOM for these homes was 96 or just over three months. The average Ask Price was $239,173. The Average Sale Price was $228,383. The average amenities included 2,551 Sq. Ft. of living space, 3BRs, two baths and a two car garage.

Notice a trend yet? My February 7th post on housing market trends in 2007 in other neighborhoods also showed a two car garage as a constant in buyer preferences. Food for thought?

I will be holding the home pictured above, 19555 Glenmar Way, open today between 2 and 5PM. It is a lovely Strongsville home with 3BRs, 2 full baths and a spacious hot tub thrown in. (no, we will not be in the hot tub, but if you are considering a move to Strongsville, stop by and see me). **Ryan Adams singing A House Is Not A Home.

Peace Out - 3C

Lakewood, Rocky River, Cleveland Heights and Shaker Heights Homes Sold in Cuyahoga County Since 2007 Began

Four communities to update here detailing sold homes in Cuyahoga County in 2007. This is a list of all the homes sold through area brokerages (since January 1st of this year) for these four suburbs.

Lakewood: 17 Single Family Homes sold this year. Sale prices ranged from $62,000 to $1,100,000.00. The average number of days on the market was 79. The average ask price was $227,561 and the average sale price was $215,583. The average room count included 3BRs,2Baths and a 2-car garage.

Rocky River: 9 Single Family Homes sold this year. (Actually ten are listed but one home listed over $500k is showing as 'sold' for $2500.00, seemed unusual so I am not including that sale here). Sale prices ranged from $153,000 to $560,000. The average number of days on the market before going under contract was 76. The average ask price was $279,600 and the average sale price was $264,722. The average room count included 3 BRs, 2 Baths and a 2-car garage.

Cleveland Heights: 23 Single Family Homes sold this year. Sale prices ranged from $30,000 to $367,900. The average number of days the houses were listed was 89. Average ask price was $122,123 and the average sale price was $115,653. The average room count included 4BRs, one bath and a 2-car garage.

Shaker Heights: 10 Single Family Homes sold so far this year. Average days on the market was 71. Sale prices ranged from $45,000 to $425,000. Average ask price was $271,070. The average sale price was $250,300. The average room count included 4BRs, 2 baths, and a 2-car garage.

The one constant in home buyer tastes seems to be at least 3 bedrooms with a 2-car garage. I'll feature more communities later this week.

Remember Big Yellow Taxi by Joni Mitchell, where she sang 'they paved paradise and put up a parking lot?' Here is the Counting Crows version.

Peace Out - 3C

Shovel or Sweep That Pesky Snow if Your Home is For Sale

If you have your home on the market, your Realtor® has probably told you that a clean house is crucial to 'looking good' to a potential buyer. I have a past blogpost on Hints to having your home ready for buyers.

Now that we have some snow on the ground, don't you want to keep that snow outside instead of on your beautiful floors or carpets? Keep your sidewalks and the walkway to your door (or your driveway for that matter) free of snow. Yes we can ask people to park their shoes at the door. But what if they don't listen?

Sweeping the porch and stairs can make a big difference. First it enhances the curb appeal of your home on dreary winter days. Imagine the look of horror on your own face when you hear that someone fell on the snowy stairs on your porch and broke an arm. It keeps all the civil law suits in Judge Judy's courtroom (is her show still on?) on television, and not on the docket of your real life!

I previewed homes today for clients and it amazed me that not one of them had swept away the snow. That's why I am making this plea to you. If you cannot sweep the snow yourself, your Realtor® can advise you of a list of people to call. And let's hope that pesky groundhog Phil was correct and winter is almost over!

OK. I'm on my way to sweep off the porch for my mailman now :-) Peace Out - 3C

894 Homes Sold in Cuyahoga County in December 2006

They made some changes to the listing service (MLS) tax information section and it automatically provided some results I found a bit interesting. It covers home and condominium sales for October and November 2006 and compared them to sales in 2005 for the same months. This is for all of Cuyahoga County:

Sales Statistics
for CUYAHOGA County OH

Single Family Residence

Time Period
Number of Sales
Median Sale Price

Nov 2006
1,153
$128,900

Nov 2005
1,336
$128,000

Oct 2006
1,295
$130,000

Oct 2005
1,395
$127,450

2006 YTD
15,692
$131,000

2005
17,056
$130,000

Condominium

Time Period
Number of Sales
Median Sale Price

Nov 2006 151
$130,000

Nov 2005
147
$120,000

Oct 2006
163
$115,000

Oct 2005
136
$118,350

2006 YTD
1,950
$117,000

2005
1,960
$115,000

I just did my own report, for all of Cuyahoga County sales in December 2006:



There were 894 homes and condos sold.

The average sale price County wide was $154,137.03

The only other thing I want to say about this chart is the comparison of 2005 to 2006.

Condos: fewer sold in November 2006 but the median sale price was higher by $10,000


Homes: 183 fewer single family homes sold in November 2006 than 2005, but the median sale price was $900 higher...so about the same but certainly not a decline!


I found it interesting to note that the 'bubble bursting' that we hear about on the National News or on National Websites has fortunately not been an issue in Cuyahoga County. We did have a few years when homeowners experienced a bit higher percentage of profit on the sale of their home than normal. Some communities like Lakewood and Westpark saw double digit growth. So this past year saw a slower pace of increases. Closer to 1%. I'll post monthly updates for the County, which means soon I can do January 2007. Granted, the above stats do not take into account how many people may have pulled their homes off the market because they changed their minds or the homes did not sell. It also does not reflect information on homes that sold privately without the benefit of a Realtor®.



Peace Out - 3C