Chip and Sue Parrish | The Personal Touch

The housing market in Dublin City school district fared well over-all in 2011.  Here is a recap:

Active homes for sale at year end  - 456 priced from $73,500-$2,300,000

Number of homes sold in 2011 - 837 priced from $40,000-$1,834,688

Average days on market for sold homes in 2011 - 104

Median price of homes currently for sale - $268,445

Median price of homes sold in 2011 - $242,700

Watch for new construction housing starts in 2012!  Dublin housing is moving. 

Although the housing market struggled to maintain an even footing in 2011, gradual improvement is expected in 2012 and beyond. Lawrence Yun, chief economist of the National Association of REALTORS®, said home sales should be stronger. "Tight mortgage credit conditions have been holding back homebuyers all year, and consumer confidence has been shaky recently," he said. "Nonetheless, there is a sizeable pent-up demand based on population growth, employment levels and a doubling-up phenomenon, that can't continue indefinitely. This demand could quickly stimulate the market when conditions improve."

Mortgage interest rates should gradually rise from recent record lows and reach 4.5 percent by the middle of 2012. Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year. Very favorable affordability conditions will dominate next year as well. Our hope is that credit restrictions will ease and allow more homebuyers to take advantage of current opportunities.

Based on NAR's current projection model, existing-home sales are forecast to rise another four to five percent in 2012 after edging up about one percent in 2011. Existing-home sales would total 4.96 million in 2011. With falling inventory, the median home price should rise in 2012. "Home prices have yet to show a definitive stabilization pattern in most areas. Still, given an over-correction in prices, there likely will be moderate appreciation in 2012," Yun said.

"Once home prices turn positive on a sustained basis, consumer confidence will rise and help the broader economy to improve," Yun added. "If we could maintain sound and reasonable mortgage underwriting standards, the market would be able to avoid a future big boom and bust cycle, but mortgage standards remain overly stringent."

Also speaking was Richard Peach, Senior Vice President at the Federal Reserve Board of New York, who said the economy is under-performing. "Nearly two-and-a-half years since the end of 'the great recession,' the economy continues to operate well below its potential," he said. "Among the significant structural impediments are the legacy of the housing boom and bust, and fiscal contrition at the state and local level."

Peach said the current business cycle remains seven percent below its peak and is longer than other recession cycles since 1953. He added the employment to population ratio is historically low, and there's been a shift in the distribution of income with corporate profits up strongly while employment compensation is down.

Peach believes there is a sizeable level of shadow inventory that will result in rising foreclosures. "My idea is to allocate certificates to 2.5 million service members who served in Afghanistan and Iraq that could be used as a down payment on a foreclosed home in the Fannie or Freddie portfolio," he said. This would help to absorb the inventory and stabilize the housing market.

2012 will be the year that residential brokerage climbs out of the hole of the last six and a half years. Unit sales will increase on a year-over-year basis and while prices will be down in most markets, with increasing employment and incomes and a resolution of the foreclosure pipeline jam, the market will be heading in the right direction

A Look Back—Overview of 2011

• Home Sales were up 4% in December over November
• Home Sales were up 12% in 2011 over 2010
• The Median home sales price Nationally was $164,000 in 2011
• The Median home sales price Locally was $127,900 in 2011
• Interest rates fell below 4% by year end and are currently at 3.91%
  

Our Summary of the 2012 Forecast in a Nutshell

• Interest rates may go up to 4.5% this year
• Housing affordability will remain high
• Buy or Invest in 2012
• Lower inventory of homes will lead to a higher median home price
• You can expect some appreciation in most areas
• Consumer confidence will continue to rise (we know… the phone is ringing!)
• Better and sounder mortgage underwriting
• More foreclosures will come into the market
• Lenders may consider more short sales and loan modifications in lieu of foreclosure
• Government is considering help for returning military – incentives to buy bank owned and distressed single family homes
  

For the Forecast in your area/neighborhood, call The Parrish Team today!

Franklin County Residential Home Sales

www.columbusrealtors.com

Central Ohio Housing Report

www.columbusrealtors.com

November marks the fifth consecutive month of increased home sales in central Ohio this year after the first half of the year struggled to keep up with increased sales from 2010 due to the home buyer tax credits.

Using the most up to date statistics available, year-to-date home sales (January through November 2011) are only 1.1 percent behind 2010 and closing the gap. Year-to-date home sales through October 2011 were 2.1 percent behind. Come January 21, we will find out how 2011 finished.

According to the Columbus Board of Realtors, 1,406 homes sold in November which is 7% more than the previous year. Homes in central Ohio this year have sold for an average of $157,032, down 2.5% from the average sale price in 2010, but up over 5% from the average sale price in the first quarter of 2011.

The Parrish Team had a very successful 2011 helping 73 families with their home selling / home buying process. We assisted 42 Sellers to successfully sell their home and 31 Buyers to successfully purchase their new home to live in 2011. Interestingly, we helped about the same number of Buyers find their homes as we did the past 2 or 3 years; moreover, we helped an additional 27 Sellers sell their homes over 2010 - an increase of 280% over last year - WOW!!

This goes to show you that there is a Buyer for every home and a home for every Buyer - call us to help you or your friends Buy and/or Sell today!