Buying Post Tax Credit

While the tax credit (which ended on May 1, 2010) was a nice, very public incentive, but there are a number of factors that buyers should consider post tax credit. It is still a great time to buy a house because

1) Many neighborhoods have suffered distress from foreclosure properties in their midst. That cycle is seeing some shift from distressed to rehabbed. Neighborhoods are seeing previously run-down, maybe even boarded-up properties, turn over to owner occupants or to investors who are fixing up for their own use or to sell for a profit…and the neighborhood is better off for it! Certainly the corner has not been completely turned, but in many neighborhoods it is easy to see that the road ahead is positive, not spiraling downward. This should inspire enough confidence in buyers to recognize and act on great opportunities when they see them.

2) Real estate has always been a good long term investment. Though prices in many markets will continue to feel downward pressure in 2010, in the long term real estate will eventually return to historic returns. Even in the past decade, real estate was a better investment than the stock market as shown by the table below:

3. The gap between monthly rents and mortgage payments is at its lowest level in almost 20 years. In some markets, the difference can be less than $100, according to a national study conducted for The Associated Press by Marcus & Millichap Real Estate Investment Services.
The analysis of 45 metro areas found the difference between the monthly mortgage payment on a median-priced home and the median rent is down to $256. The last time that gap was anywhere near that small was in 1993 when it fell to $264, according to the study.

4. In most areas of the country, housing average sales prices are at approximately the 2003 levels back before the huge increases of the 2004-2006 boom. So with 2003 prices and 2010 interest rates, the net to the buyer’s bottom line is impressive!! Check out these charts from one of the best real estate analysts in the business, Steve Harney’s blog http://kcmblog.com/2010/04/26/the-price-is-the-same-it-just-costs-less/

5. Interest rates are at historic lows. Interest rates in August of 2003 were over a full percentage point higher than they are today. We can see in the table below that, even though you would pay the same price for a house today, your mortgage payments on a $200,000 loan would be $145.61 less each month. That is an annual savings of $1,747.32. Over the life of a thirty year mortgage you would save $52,419.60.

*Information from http://comey.com/article.asw?section=blog&article_id=23

March 1st, 2010

Have you been wondering exactly how your Cincinnati neighborhood has faired over the last few years?  The Cincinnati Area Board of Realtors just published a nice comparison list of the average sales price and number of homes sold between 2008 and 2009.

If you would like a personalized, more detailed study of your home I’d be happy to help.

CABR Comparison of Annual Single Family Sales for Suburbs / Municipalities

Article originally posted February 25th, 2010.

Interesting article but I don’t agree with all of their advice.  Point number five goes against everything I have been taught and have experienced first hand.  The only time it may make sense is if the buyer has very specific questions about the home and is coming back for a second showing.  Otherwise a seller should not be present when buyers are previewing their home.

Being a real estate buyer can be a stressful situation and most prefer taking their time to view a property.  Buyers have a hard time feeling comfortable opening closest doors in homes without the sellers present, let alone homes where the seller is following you around.  At no time should a buyer feel rushed.  Unfortunately this often happens when sellers are around.

http://consumerist.com/2010/02/5-tips-for-selling-your-home-now.html

Article originally posted January 5^th, 2010.

Happy New Year everyone!

There continues to be good news for potential buyers out there in the New Year.  Many Cincinnati neighborhoods are continuing to trending towards a “buyers market.” This means supply and demand often favors buyers getting better deals.  From reviewing past history and seeing market conditions first hand, I predict many of these neighborhoods will slowly shift towards a more neutral ground between buyers and sellers. With the continuation of low interest rates (they won’t last forever) and the federal tax credits for first time home buyers or those moving up (see previous blog post for details), now is the time to buy.

Attached via the link below are Market Statistical Reports detailing last week’s activity for several east side neighborhoods including Hyde Park, Norwood, Oakley, Mt. Lookout, Anderson Twp and Downtown.  Take a look and see for yourself why now is a great time to buy!

Neighborhood Reports

Did you know that you no longer have to tune into cable channel 64 to view the Comey & Shepherd Home Show?  Our newly redesigned web page at http://www.comey.com features the home show at the bottom right portion of your screen.  Now you can preview videos of homes at your convenience.

Comey & Shepherd Realtors released our freshly updated website today.  Please check out http://www.Comey.com and let me know your thoughts.  The new page is much more streamlined than our previous page, which makes searching for homes a breeze.  Stop by and be sure to check out our video home tours.

Article originally posted November 17, 2009.

Have you been sitting on the fence during the last few years of real estate woes?  It may just be time for you to change your attitude towards Cincinnati real estate.  While the bottom may not have hit in all Cincinnati neighborhoods, I personally believe it has bottomed out or is close to bottoming out in quite a few communities.  Neighborhoods such as Hyde Park, Oakley, and the Mt. Washington/Anderson areas are showing decreasing inventory levels and are at price points we have not seen since the late 1990’s/early 2000’s.  Here are some great reasons why now is the time to take advantage of the current market:

1. Prices of nearly a decade ago.
2. Interest rates hovering near the 5% mark.
3. Potential tax credits of $8000 for first time home buyers
4. Potential tax credits of $6500 for move up buyers. (must have spent 5 yrs living in your home).
5. Time of year. Fall is usually one of the slower times of year in Real Estate.  This typically presents opportunities for buyers as sellers may be more willing to negotiate.

If you are planning on spending a few years in your new home, now may be the perfect time to buy.  We may never see interest rates at current levels coupled with significant tax credits again.

Contact me to discuss further details or activity in specific neighborhoods.  Remember… tax credits are only available thru April 30^th, 2010.

For more information on government tax credits please visit: http://tinyurl.com/ykkray5

*Information provided from data gathered from the Cincinnati MLS