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Central Ohio Real Estate News

by Teresa Butler; Signature Real Estate

By Teresa Butler | Agent in Gahanna, OH
  • Michael Jordan’s $21M Home on Auction Block

    Posted Under: Celebrity Homes in Gahanna  |  October 25, 2013 5:55 PM  |  179 views  |  No comments

    Former basketball star Michael Jordan is selling his $21 million suburban Chicago home — but taking a non-traditional route to do it. He's putting it up for auction. 

    A growing number of multi-million dollar homes are landing on the auction block as auctions become much more than a way to unload foreclosures. 

    “Instead of being at the mercy of the market and waiting for buyers to make offers, the sellers are able to name the date of their sale and the format, and they don’t have to deal with any negotiations,” says Laura Brady, president of Concierge Auctions. 

    The late designer Gianni Versace's former mansion sold at auction last month, nabbing $41.5 million. 

    Jordan’s home in Highland Park, Ill., will hit the auction block on Nov. 22 with no minimum opening bid. However, potential buyers must make a deposit of at least $250,000 to qualify in the auction.  

    The 56,000-square-foot home is listed on the MLS for $21 million, down from last year’s price of $29 million. It boasts nine bedrooms, 15 bathrooms, and a basketball court. It’s being sold fully furnished. 

    "I have so many amazing, happy memories of my life in the house over the years," says Jordan, who won six NBA championships during his career with the Chicago Bulls. "It's where my kids grew up. It's where I lived during my championship years. But my kids are grown now, and I don't need a large house there anymore."

    Source: "Concierge Auctions to Sell Michael Jordan's 56,000-Square-Foot Highland Park Estate to the Highest Bidder," Concierge Auctions  and “Michael Jordan's Home Auction: Best Shot for a High-End Property?” AOL Real Estate

  • Housing Moves Toward 'Healthy Equilibrium'

    Posted Under: Market Conditions in Gahanna  |  October 25, 2013 5:50 PM  |  112 views  |  No comments

    The housing market is finding its center again, showing signs of greater balance, according to realtor.com’s latest National Housing Trend Report. The analysis finds year-over-year trends revealing strong gains in median list prices and declines in days on the market. 

    “Our September data on inventory counts, median list prices, and median time on market has shown another month of steady leveling, but the recovery certainly remains uneven in some pockets,” says Errol Samuelson, president of realtor.com. “Some of the more industrial-based markets clearly continue to struggle, yet others are showing significant price gains over this time last year. While we are pleased to see a continued trend toward a healthy market balance, imminent economic factors could pose a significant threat to these improvements.”

    The report highlights some of the following progress on four main indicators for the housing market: 

    • List prices: The median list price for homes in September dropped slightly but remained 6.4 percent higher than a year ago. More than 20 percent of the 146 markets that the realtor.com report covers posted year-over-year gains in listing prices of 12 percent or more.
    • Home sales: Sales of single-family homes, condos, and townhomes fell 1.68 percent in September, after six consecutive months of gradual rises.
    • Inventory levels: Inventories were 2.04 percent less in September than year ago levels—“signaling a greater balance between supply and demand,” realtor.com’s report notes.
    • Days on market: The  median age of inventory increased from 92 days to 93 days in September. However, it has fallen by 10.58 percent in the past year, which indicates that homes are selling more quickly, according to the report. 

    The report reveals the following metros with the shortest median days on the market in September: 

    • Oakland, Calif: 28 days
    • San Francisco: 45
    • Denver: 45
    • San Jose, Calif.: 45
    • Stockton-Lodi, Calif.: 45
    • Detroit: 48
    • Phoenix-Mesa, Ariz.: 50
    • Seattle-Bellevue-Everett, Wash.: 52
    • Washington, D.C.-Md.-Va.-W.Va.: 52
    • Saramento, Calif.: 52

    Source: “Housing Market Pushing Further Toward Healthy Equilibrium,” realtor.com

  • America's Priciest ZIP Codes

    Posted Under: Quality of Life in Gahanna  |  October 25, 2013 5:49 PM  |  130 views  |  No comments

    Silicon Valley is a hotbed for the priciest homes in the country, according to Forbes’ 2013 list of America’s Most Expensive ZIP Codes, which analyzed more than 22,000  ZIP codes across the country. Silicon Valley had several ZIP codes emerge at the top of this year’s list, which Forbes attributes to a tech boom that has created a new wave of millionaires and billionaires who are purchasing homes in all-cash deals.

    A recent article in The Atlantic Cities poses another explanation for San Francisco’s rising home prices—the city’s new-home construction has been severely constrained “to protect the ‘character’” of the area. The article says that San Francisco’s interest in preserving the historical aspects of the city has sparked a rise in housing prices, while the demand for housing increases faster than supply.

    “Over the past two decades, San Francisco has produced an average of 1,500 new housing units per year,” according to the article. “Compare this with Seattle, which has produced about 3,000 units per year over the same time period (and remember it's starting from a smaller overall population base). While Seattle decided to embrace infill development as a way to save open space at the edge of its region and put more people in neighborhoods where they could walk, San Francisco decided to push regional population growth somewhere else.”

    The following are the top 11 most expensive ZIP codes, according to the Forbes analysis:

    1. Atherton, Calif.: 94027
      • Median home price: $6,665,231
    2. Los Altos Hills, Calif.: 94022
      • Median home price: $5,404,692
    3. New York, N.Y.: 10065
      • Median home price: $4,860,494
    4. Belvedere, Calif.: 94920
      • Median home price: $4,807,885
    5. Sagaponack, N.Y.: 11962
      • Median home price: $4,790,769
    6. New York, N.Y.: 10014
      • Median home price: $4,628,782
    7. New York, N.Y.: 10013
      • Median home price: $4,619,761
    8. Alpine, N.J.: 07620
      • Median home price: $4,481,964
    9. Portola Valley, Calif.: 94028
      • Median home price: $4,339,923
    10. New York, N.Y.: 10012
      • Median home price: $4,212,447
    11. Aspen, Colo.: 81611
      • Median home price: $4,205,675

    Source: “America's Most Expensive Zip Codes In 2013: The Complete List,” Forbes (Oct. 16, 2013) and “The San Francisco Exodus,” The Atlantic Cities (Oct. 14, 2013)

  • Builders' Confidence Wanes in October

    Posted Under: Market Conditions in Gahanna  |  October 25, 2013 5:47 PM  |  105 views  |  No comments

    Builder confidence in the market for newly-built, single-family homes dropped in October as concerns mounted over rising mortgage rates and uncertainty sparked by the government shutdown, according to the National Association of Home Builders/Wells Fargo Housing Market Index. 

    Still, "builder optimism remains above 50 and we are still seeing signs of pent-up demand in many markets across the country," says NAHB Chairman Rick Judson. "This slight dip in builder sentiment is the result of continuing challenges in the marketplace with regard to the cost and availability of labor and lots and uncertainty in Washington."

    Overall, builder confidence posted a reading of 55 on the index in October. Any number above 50 indicates that more builders view conditions as “good” rather than “poor.” NAHB Chief Economist David Crowe expected that once the government impasse was resolved, builder and consumer optimism would bounce back. 

    “Interest rates remain near historic lows and we don't expect the level of rates to have a major impact on sales and starts going forward,” Crowe says. 

    The index measures builder perceptions in single-family home sales, sales expectations for the next six months, and buyer traffic. All three indicators dropped two points in October. Current sales conditions registered 58 on the index; sales expectations were 62; and buyer traffic fell to 44. 

    Source: National Association of Home Builders

  • 'Boomerang Buyers' Are Staging a Comeback

    Posted Under: Market Conditions in Gahanna, Home Buying in Gahanna  |  July 16, 2013 5:30 PM  |  383 views  |  No comments
    Boomerang buyers”—former home owners who have gone through a short sale, foreclosure, or bankruptcy in the past few years and are saving up for a down payment to purchase a home again—are coming back. They're expected to flood markets in some of the hardest hit areas for short sales and foreclosures in the coming years. For example, boomerang buyers are predicted to account for nearly one in every five home sales in the metro Phoenix area this year—double the projected U.S. rate.

    Rising rents and the desire to own again now that the economy is more stable are driving many boomerang buyers to re-enter the market. They also want to jump in before interest rates and home prices climb too much higher.

    But how soon they can jump back in will depend on the type of loan they had as a previous home owner. For example, boomerang buyers who had FHA loans may need to wait only three years if they can prove that a hardship, such as job loss or death of a wage earner, led to their foreclosure or short sale.

    Borrowers have typically been required to wait five to seven years to qualify for another loan, but mortgage giants have begun to change their rules to allow home owners who underwent a foreclosure or short sale to qualify sooner. Those who underwent a short sale will likely qualify the soonest. However, not all lenders are participating, so borrowers will need to shop around.

    Freddie Mac’s wait time is usually four years following a short sale or deed-in-lieu, and seven years after a foreclosure. Fannie Mae may require a seven-year wait for a foreclosure, but only a two-year wait following a short sale as long as the borrower can provide a 20 percent down payment.

    The following markets have the highest share of boomerang buyers, according to John Burns Real Estate Consulting:

    • Riverside-San Bernardino, Calif.: 4.1% (percentage of all U.S. boomerang buyers in 2013)
    • Los Angeles: 3.7%
    • Phoenix: 3.6%
    • Chicago: 2.5%
    • Atlanta: 2.4%
    • Las Vegas: 2.12%
    • Washington, D.C.: 2.1%

    Source: “New Wave of Buyers Ready to Hit the Real Estate Market,” The Examiner (July 15, 2013) and“Phoenix housing market sees 'boomerang buyers' sooner than expected,” The Arizona Republic

  • More Household Formation to Buoy Demand

    Posted Under: Market Conditions in Gahanna  |  July 16, 2013 5:29 PM  |  356 views  |  No comments

    As job growth remains steady, conditions are ripening for household formations to grow stronger, according to a recent report on housing demand. Children are moving out of their parents’ homes, and college graduates are stepping out on their own, helping to fuel demand for housing.

    The growth in household formation has caused an increase in demand over the last two years for all types of housing, including multifamily and single-family ownership and rentals, according to the report.

    Household formation hit bottom in 2009 and 2010, hovering in the mid-to-high 300,000 range. The normal average is about 1.2 million. In 2011, annual household growth rose to 1.1 million, and 2.4 million in 2012.

    Analysts note in the report that they expect household formation to continue to rise, assuming that job growth remains at or above the current pace.

    Jay McCanless, a Sterne Agee analyst, expects housing starts to remain strong through at least 2015.

    Source: “Conditions are ripe for household formation,” HousingWire

  • Homebuilding Plagued by Shortages

    Posted Under: Market Conditions in Gahanna  |  July 16, 2013 5:28 PM  |  346 views  |  No comments

    Despite a big rise in orders for new homes in the past year, a shortage of building supplies and skilled labor is causing construction to lag demand.

    “A wider housing market recovery has yet to filter down to regional building products makers—the companies that supply the roofing, walls and interior fittings needed to build these new homes,” Reuters reports.

    Tight credit is also limiting suppliers' ability to raise their production to meet demand. Since the financial crisis, big banks are more reluctant to lend to small suppliers.

    "Until you know unequivocally that the housing market has returned, you are going to be more reticent if you are a bank," Scott Simpson, BlueTarp chief executive, told Reuters. "Big banks are not going to lead the field in lending."

    Homebuilders also are still operating at low workforces, following cutbacks during the housing crash in 2007.

    "Construction is not proceeding as fast as it might have, had there been an ample supply of labor," says Chad Crow, chief financial officer at Builders FirstSource Inc. "I think that will probably be the trend over the next year or two."

    Source: “Starved of credit, construction suppliers lag housing rebound,” Reuters

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