What's the Market Like For Mason Ohio Condos?
First off, if you want to live in a condo in Warren County, the best chance of finding what you want is in Mason! There are numerous condo developments with a variety of styles, ranch, two story, townhouse, lake views and golf courses, lower price point and WOW can you believe they paid THAT much??
Combine location with serious convenience to work, shopping, dining, entertainment and a #24 Money Magazine ranking in 2011 for Best Places to Live and you can see the appeal. And did we mention Mason public schools are among the best in the state? There's a LOT of reasons for Mason to set the pace for Warren County housing.
In September we analyzed the Mason Ohio School District residential homes sales overall and included single family residences along with condos and the message of recovery was VERY strong. Today we're going to split out the condos from that report and provide you the specific data for them. We'll include all condo sales data from Cincinnati MLS and interpret what the data is telling us.
The first table is a year to year comparison, basic information as to how many homes sold, what the average price was, median price, and average days on market. We used 2005 as a baseline because it's well before things swept downwards in 2008/9. For the overall market from our previous report, Average Prices were down 4% from 2005 and Median Prices were down 2%.
So what does the year to year data comparison show us? Overall, when comparing the full year of 2010 to the full year of 2005, Average Prices were UP 3% and Median Prices UP 4%. Condos outperformed the overall residential market for this time frame, although obviously sales volume is WAY down. Condos make up approximately 25% or more of Mason's residential sales. Considering the news from many areas is tremendously negative, this is pretty upbeat news.
But since we're most of the way through 2011, we're not going to stop with full year data.
To keep things apples to apples, let's compare the first NINE months of each year and see what the data tells us:
Wow, that shift was unexpected! -10% and -16%???? Through the end of 2010 it was looking fantastic. We actually had appreciation through the end of 2010, but it looks like the bottom fell out this year.
Obviously something seems to have shifted and radically! Considering that there's been no recent negative business news significant enough to drive down home prices, and no issues with school performance or quality of life, what could be driving this drop?
In one word: Foreclosures! We dug a bit further to understand what happened, and examined Bank owned, Government owned, Short Sales and also included Relo homes since they're often sold below full market valued.
For 2009, 2010 and 2011 nine month periods, those populations have been 23-24 homes Sold for each of the nine month periods. VERY consistent. But the average sales prices of those homes have been dropping, and for 2011 the average distressed property sold at $85k vs. $95k and $110k in the other two years.
And you'll note that the volume of condo sales is off considerably from the previous years, so while the number of distressed property sales have been consistent over the last three years, they're percentage is up significantly for 2011. Couple that with the prices for those distressed properties being significantly below the Average and Median and thus dragging down the entire condo sector values for 2011.
So what does this mean to you as a Mason Ohio condo seller?
Fewer condo sales overall mean it's taking longer to sell. You've got more direct competition from foreclosures and short sales. You can address that one of two ways: Go to their price level and whip them with your superior condition and ease of negotiation (okay, this isn't going to be viable for MOST sellers due to the price level), or price your condo "normally" and fill up your patience jar. You're going to watch some condos sell before you, but this is really a tale of two markets, the distressed and the regular resale.
So what does this mean to you as a Mason Ohio condo buyer?
It basically means you've got a window of opportunity to purchase a Mason condo off the distressed market if you've got the flexibility to wait for responses and solid financing to back you up. Condo financing can be more challenging than single family residences, so it's critical to have a lender and a REALTOR(R) assisting you who know the ins and outs of condos.
We represent both Mason condo sellers and buyers, so if you're interested in discussing what we can do for you, and how your particular community has been impacted, please give us a call!
Serving Mason's residential real estate needs,
Liz and Bill aka BLiz