With the third quarter officially over, we now have the data to complete our quarterly market report for Solon OH for the zip code 44139, excluding Glenwillow.
First, we will provide market statistics for the past month of September. We will then offer a look at the third quarter as well as year to date statistics. We will also make a comparison between this year and 2012 and give an analysis of the market as to where we are headed in the future.
Within the report, we will also include a breakdown for the Solon luxury home market ( those priced over $500,000 ).
SOLD HOME STATISTICS SOLON OHIO
Date # of homes sold Ave. Sales Price
September 2013 24 $281,150
September 2012 25 $318,575
Third Quarter 2013 98 $319,277
Third Quarter 2012 99 $320,052
YTD 2013 240 $306,681
Jan-Sept 2012 200 $306,846
SOLON LUXURY MARKET
Third Quarter 2013 16 $619,747
Third Quarter 2012 16 $652,219
YTD 2013 37 $642,255
Jan - Sept 2012 31 $639,426
*source NEOHREX ( Regional MLS )
As predicted in our bi-annual report, we did see things slow down over the last few months, after a blistering start to the year. However, sales are still up a whopping 20% from last year and 2013 will end up being a great year in Solon real estate.
Overall, the buyers who were looking to get into their new homes before the start of the school year dominated the market until July. Once school started, things have slowed down considerably. Why has this happened?
The slowing of the market is a result of low inventories, raising rates, and the lack of urgency of a typical fall buyer.
To begin, it was only natural that things would slow down. We saw some incredible months where homes were flying off the market and bidding wars were not uncommon. For a short time, we saw a sellers market in Solon, one we haven't seen for years. However, there are not enough nice homes to satisfy the demands of today's buyers.
I know what you're thinking, "doesn't low inventory drive up values?" Initially yes, this did happen through the first half of the year. The buyers who had a high sense of urgency to get into their new home ended up supporting higher values and quicker sales.
Now, the buyers left in the marketplace have a much lower sense of urgency. Sure they'd like to buy, but they don't have to do it now. Therefore, the lack of available homes for sale is actually hurting the market even more than before.
Here's a perfect example: we have a buyer client who has 2 very young children and lives in another east side suburb. They would love to buy a home in Solon and have actually seen everything in their price point and just haven't found anything they love. They don't need to move now and are not willing to "settle" for a home that they only like, but not love.
The problem from a sellers' perspective is that the buyers that are left will only make a move for a great home or a deal. Many homes on the market were originally priced a tad high to take advantage of the hot market. Now, the time has passed and many active listings now appear overpriced and outdated.
Add to this an increase in interest rates and things have slowed down.
Moving forward, sellers can take advantage of the lack of competition by putting their home for sale now, rather than wait until the spring. Rising interest rates and an always uncertain economy may make now a better time to sell and buy a home.
Overall, we anticipate 2013 ending up to be one of the best years we have seen in real estate in a long time.
About The Authors:
Dan and Amy Schuman specialize in Solon Oh Luxury Homes and both have designations pertaining to their expertise in selling luxury homes. Dan is an Accredited Luxury Home Specialist and Amy holds the Certified Luxury Home Marketing Specialist designation.
For Ohio and Solon Oh real estate and luxury homes see Solon OH Real Estate
For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235 or email.
Solon Ohio Real Estate - 3rd Quarter Market Statistics is the property of The Schuman Team, including all photos, and may not be duplicated or used without their written consent. ©October, 2013