Toledo Homes, Real Estate Market News is not good. But there are some bright spots.
Toledo Realtor, Lonn Dugan, of RE/MAX Masters says Toledo home prices continue to fall, while toledo home sales volume is down.
Many frustrated home sellers have found thay cannot succeed when trying to sell a house in Toledo, Ohio - especially if using a Realtor that has not mastered Internet marketing. This is because 80% of all buyers now find their home on the Internet instead of by driving around looking for signs.
In contrast, Dugan, who is a former DotCom marketing guru, says his clients have been selling for 98% of list price, and getting done in an average of 61 Days. "If you don't have to sell, then this might not be the time", he says. However, if you are staying in the local area, then it may not matter if your house sells for less than you once hoped, because you will save that much and more on your next house. "There are some truly GREAT buys out there", Dugan says. Instead of using your down payment savings to buy down the price of the next house, you can use it to pay off the difference between market and mortgage on your current home. In this way a seller still ends up with a new house at a GREAT price!
Some discouraged sellers are deciding to wait 6 months to one year to try again to sell, but this plan is ill advised in view of economic forecasts. Price declines are not likely to end for another 12 to 24 months according to most economists. By then, the new home market will have stabilized and the replacement home prices will also go up. For this reason, the best advice for a potential seller is to go ahead and sell now, before values fall any further, and then take advantage of great home prices available to buyers.
There are a great many foreclosure homes or bank owned, and HUD homes for sale, at fire sale prices, dragging prices down for all homes in average to neglected condition. However the nicer homes that have been cared for do seem to be showing some firming of prices.
Toledo Real Estate Prices are down about 5% overall and as much as 30% in some neighborhoods. This decline compares August Sales in 2007 year to date to sales to those from one year ago. The most recent months show that sales volume is down 10% to 20% from 2006, varying from neighborhood to neighborhood, compared to the same period of one year ago. In some neighborhoods, Sales in 2006 were already down 20% or so from 2005. This means that overall, sales volume is down as much as 40% from 2004 in some neighborhoods.
Foreclosures continue to be filed at record levels, and the sheriff department is backlogged by several months in the auction scheduling process as well as in evicting the persons who have lost their home. Mortgage business insiders seem to indicate that foreclosures will continue to increase in the next year, and that conditions may not improve until 2009. These foreclosed or bank owned, "repo" homes sell for about 20% less than others in their neighborhoods, dragging prices down for all when these distressed homes are used as "comps" by appraisers on future sales.
That's the bad news. There are a few bright spots.
First: Sylvania Ohio values are increasing again in 2007 with prices up 2 - 4% year to date through August 2007. Sylvania Ohio Real Estate values were one of the only bright spots in the area in 2006, increasing 6% while most area communities saw prices decline. Further, property values are remaining strong in Monclova and Springfield Township, which are communities that are also located west of Toledo Proper (much like Sylvania).
Second: In August of 2007 there were actually fewer homes listed than in the same month, one year ago. This would be the first times in at least 12 months, and perhaps 2 years that fewer homes came on the market than in the same period one year earlier. A reduction in supply would be good for the market overall, to help support seller values.
Third: I have been succeeding at selling homes other realtors couldn't or wouldn't. At last check, my selling clients were getting 98% of list price, and selling in an average of 61 days, while the larger market average for all Realtor sales was over 100 days.
Fourth: Properly priced homes can be sold in 30 - 60 days, The price is not what you might have expected a year or two ago, but if you meet the market where it is, you can sell and move on to whatever is next in your life.
If you need help buying or selling a home in Toledo, call or visit my web site
Lonn Dugan, Realtor,
Commentary Above: Excerpt from Source Article http://www.thinktq.com/training/articles/tqs_article.cfm
"To punctuate what I am saying, consider this dire assessment from the CEO of the world's largest mortgage lender:
Countrywide CEO Sees Recession Ahead...
NEW YORK (Reuters) - Thursday Aug 23, 2007 Countrywide Financial Corp Chief Executive Angelo Mozilo said on Thursday the U.S. housing downturn is likely to lead the country into recession, but that the largest U.S. mortgage lender will survive.
In an interview with CNBC television, Mozilo said "markets are in one of the greatest panics I've ever seen in 55 years in financial services."
Mozilo said housing and the economy were not out of the woods. Falling home prices hurt homeowners psychologically and cause them to spend less, he said. The 68-year-old executive has worked in financial services for more than a half century.
"I've seen this movie before, and the ending of the movie always ends up in some form of recession," Mozilo said. "I can see the economy slowing down substantially enough to give the regulators, the Fed some pause in what's going to happen next."
It might be added as a somewhat tragic footnote that some 25,000 people in the financial services area, jobs that until recently appeared to be immune from any downturn in the economy, were lost in just the last 3 weeks... and over 50,000 high-paying jobs so far for the year.
Things are indeed going from bad to worse."