JP's Real Estate Blog

Faulkner Realty Group Agent Jeff Johnson receives letter from Representative Patrick Tiberi

2009-02-13T12:00:00.000-08:00

Dear Mr. Johnson,

Thank you for your past correspondence. I'm writing to update you on a provision included in the American Recovery and Reinvestment Act, also known as the "stimulus" bill.

As a former realtor, I understand the benefits of homeownership. I also realize during this time of economic uncertainty, increasing incentives to purchase homes will increase consumer confidence in our economy. I have said for months now taking action on housing will immediately aid our economy. Providing a meaningful tax credit to homebuyers, I believe, would encourage homebuyers that are considering entering the market. I have consistently supported the idea of this type of tax credit and frankly, I believe a $15,000 tax credit to all homebuyers, without limits, is still not enough. This type of a credit should also be extended beyond one year and not contain any income limit caps. Earlier this week, I sent a letter to Speaker Nancy Pelosi and Republican Leader John Boehner, urging them to make housing a priority in the stimulus package. I've enclosed a copy of this letter for your review.

As of this afternoon, I still have not seen an official copy of the final legislation, although the Democratic leadership has told the media they have a bill. I have heard reports the Democratic leaders are reducing the amount of the credit from $15,000 to $7,500 and shortening the time homebuyers may receive the credit and limit it to first time homebuyers. If this is true, I strongly disagree with their actions. Again, we need more focus on housing if we are truly going get our economy back on track, not less.

Should you have questions about the tax credit, please feel free to contact my Legislative Assistant, Lindsay Vogtsberger. Although Lindsay works in my Washington, D.C. office, she may be reached through a local number at (614) 523.2555. Thanks again and I hope this update is helpful.

Sincerely,
Patrick J. Tiberi Representative to Congress
PJT/lv

Area housing steadily returning to normal, '08 figures show

2009-02-10T07:45:00.001-08:00

Area housing steadily returning to normal, '08 figures show
(Jan. 22, 2009) While many markets struggled in 2008, central Ohio fared far better than Ohio and the nation, with inventory, sales and sale prices in keeping with pre-boom levels the Columbus Board of REALTORS® said today.
"Homes sold in 2008 were lower than the previous year, and the average sales price dipped a bit, but overall the local story was better than the national headlines would lead you to believe," said Gary Parsons, president of the Columbus Board of REALTORS®.
There were 13.5 percent fewer homes sold in central Ohio during 2008 - down from 24,445 sold in 2007 to 21,153 sold last year.
With 13,533 homes for sale last month, December marked the lowest inventory level since April 2005.
Record-high inventory significantly influenced home prices in 2008. Homes were priced more competitively and more homes sold in the lower price ranges, further skewing the average sales price.
The average sale price of a home in central Ohio last year was $163,732, down 5 percent from the 2007 average.
Lowering inventory levels is a key to returning the market to a balance between supply and demand, and ultimately bringing prices back up.
"Yes, 2008 was a challenging year, but when you compare a 5 percent average price drop to other parts of the country, not to mention Ohio, it's clear why Columbus is consistently considered a stable market," Parsons said.
"The declining inventory of homes, coupled with historically-low mortgage interest rates should prompt home price increases in 2009," Parsons added. "There's a reason we're telling our clients that now is a great time to buy is because the ability of buyers to stretch their housing dollar probably couldn't get much better."

Additional Statistics
To view residential properties for sale, visit www.Realtor.com.
To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.

Have We All Lost The Ability to Think For Ourselves?

2009-02-05T06:52:00.000-08:00

Have We All Lost The Ability to Think For Ourselves?
Published on Friday, January 23, 2009, 9:06 AM Last Update: 15 hour(s) ago by Randy Eagar
Tags: economy housing foreclosure unemployment government
Every time I read the paper or listen to the news, I get mad. Really mad. In the last 30 days, the New York Times published the following headlines: “Plunging Housing Markets . . . Down Again”“Home Prices Suffer Record Monthly Drop”“Bank Closures at All Time High in 2008”
“Credit Crisis Waves Roll On”“Growing Market in Foreclosures”“Foreclosure Rates Show No Sign of Slowing”“States Unemployment Funds Run Low”And the bad news goes on and on, causing panic and fear until we become our own worst self-fulfilling prophecy. Here’s my beef. It's media hype. No it's worse than media hype. It's a vast media distortion, used to sensationalize and sell the news. It's not the first time the media has done this, but now it has hit close to home. Close to your home, close to your client's home and your livelihood. The result is that the American homebuyer is naively buying the lie and hesitating to buy that home they need. Another beef I have is that perhaps even a few of you Realtors reading this artilce have been sitting in your own family rooms reading and watching those headlines, and you've believed the hype yourselves. Why? Because, like me and everyone else who reads the papers, watches it on the TV and hears it on the radio, we think that just because the mainstream media says it, then, by golly, it's gotta be true. Pundits know that if they repeat anything long enough, people believe it. Well I’ve got a few surprising facts here that were shared in a speech given by my good friend Utah Lieutenant Governor Gary Herbert. He and I worked together years ago to establish the Utah Chapter of the Council of Residential Specialists. OK, here's what he shared with us:“Bank Closures at an All Time High in 2008”. Hogwash!
In 1989 there were 1,004 bank closures.
In 2008 there were 30 bank closures
On average there are 94 bank closures per year
“Foreclosure Rates Show No Sign of Slowing”. Baloney!
During the Great Depression Foreclosure Rates were 50%
Nationally today our Foreclosure Rates are 3% (1.4% in Utah)
“States Unemployment Funds Run Low”. Ridiculous!
During the Great Depression Unemployment ran at 25%
Nationally today our Unemployment is 7.2%
As Realtors, I challenge you to join me in confronting the main stream media in your own locations. Spread this information on your blogs, and in all your social networking. It's the real truth. It's not hype. I say let’s fight back and take back the one industry that is at the heart of the American Dream -- the Real Estate Industry -- and bring this whole mess, this nation and the world back from chaos. The one best weapon that you have at your disposal is the truth! Are times right now bad? Yes. Do we have a shaky market? Yes. But FDR's famous statement applies: "The only thing we need to fear is fear itself." It's time to start looking at our glass as 93% full rather than 7% empty. We need to look at putting 15-20% down payment and say what’s wrong with that? That's been a standard in real estate for years - a safe standard. We need to look at qualifying procedures and make sure that we are selling homes to people who can afford them. We are the grass roots of the economy, and we can make a difference. We can take it back. All we need to do is to tell our buyers and sellers the truth about what is going on and stop the panic. If there is insanity going on it is in the pundits that look for all the bad news to make sensationalism sell their message.Our message should be: "America is good. America is strong. America is proud!"

2009-01-29T13:19:00.000-08:00

“IT’S A CRUEL, CRUEL SUMMER LEAVING ME HERE ON MY OWN. From 80’s band Bananarama and that’s exactly what potential home buyers and refinancers who stay on the sidelines might be singing.
Although home loan rates are very attractive now, the picture could be quite different as some inflationary factors will likely come to light heading into summer. Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and, perhaps most importantly, the Fed will no longer be a buyer of Mortgage Bonds. These are all ingredients in a recipe that could very easily result in significantly higher interest rates this summer...so if you have been thinking about acting on a home loan, do not delay.
But with no hint of inflation in the current market, why would Bond traders be fearful now? Are they listening to strange voices and what did they say? The forward looking markets got an earful from Fed Governor Frederic Mishkin last week….and he’s not the only one. Mishkin said that “inflation could come to the forefront, given all of the government programs”, and “once the economy recovers. Liquidity must be taken out of the markets”...meaning the Fed may need to rapidly hike rates down the road, to control the potential of inflation.
In other news, Stocks around the globe faced heavy selling pressure last week on renewed fears of the deepening worldwide economic slump….and this despite better than expected earnings from Google and IBM, as well as GE meeting earnings expectations. Even with the downward pressure on Stocks which can sometimes benefit Bonds, the mention of the “I” word left its mark, with home loan rates ending the week around .25% higher than where they began."

The proceeding article courtesy of Julie Vore via Fifth Third Bank Financial Markets update newsletter

Fuzzy Facts make for Fuzzy thoughts.

2008-10-15T12:55:00.000-07:00

Last week I wrote " Bail Out or Bust" referencing the statistics for one of my listings on Realtor.com. I copied the chart from realtor .com on Monday of last week. Today Wednesday I am copying the latest chart...Do you see what I see???...How is anyone suppose to know what is happening in today's market when even your own organization seems to have a major problem with the accuracy and reliability of its data...Back to the horse and buggy...

A great Real Estate lesson for all..

2008-10-15T11:38:00.000-07:00

This is a great to the point article. A similar situation happened to me just recently. I had comped out a house more than 8 months ago. When you look at the current properties that were on the market we were now overpriced. When you looked at past sales from January 1,2008 through last week we were actually under priced..the market was falling right before our very eyes. It is very hard to tell the intensity of the storm when your standing in the eye of the hurricane.

This is from the Sunday Dispatch.

REAL ESTATE MATTERS

In a tough market, best-looking and best-priced house sells
Sunday, October 12, 2008 3:29 AM
By ILYCE GLINK

Q: What do you think of a Realtor who at first told me that my house shows well but now tells me to pack up my clutter and get it out of the house?
I've had my house on the market for five months and haven't had an offer. She also told me that the house I live in is the most frequently sold type in my area. Two couples came through the house and didn't like the floor plan. I think she lied to me. What do you think?
A: I think we're in the worst housing market in more than 30 years. Five months ago, your agent might have thought your house showed well and was priced competitively with other homes on the market.
But in a tough market, your home might show well but not as well as other homes for sale in your neighborhood. If you want to sell, your house has to look the best and be priced lower than comparable homes in the area.
Your house style also might have sold better than others in your subdivision. Just because two couples came through and didn't like the floor plan doesn't mean that your agent is lying to you.
In a tough market, you'll sell only if you stage your house so that it looks like a developer's model home -- then price it lower than just about everything else in the neighborhood.

Bail Out or Bust

2008-10-06T08:22:00.001-07:00

Real Estate sales are dependent on consumer confidence..The bail out passing was said to boost consumers interest in the market place instilling confidence that money would be available to lend( btw... all of my clients and any realtor that I have talked to in the last month have had no problem securing loans for their clients), as part of an experiment I'm posting these stats..they are of a property that I have listed in The Victorian Village area, a market place in Greater Columbus that is thought to have not felt the market pressures as much as other areas due to its proximity to the downtown , the university and of course a plethora of great restaurants and clubs. Please view the stats from Realtor dot com week ending 10/05 total 53 and then look at the highest views week ending 08/03 that total 446...stay tuned for next weeks stats...and we will see if its Bail Out or Bust... JP

Columbus Housing Market Makes National News

2008-08-26T12:26:00.001-07:00

Fox Business News featured a segment on four major housing markets. Columbus Association of Realtors president Greg Hrabcak was a featured guest on the August 21st episode of "Bulls & Bears." Greg offers some interesting facts as to where we rank in regards to other parts of the US. The segment takes a few seconds to load. Enjoy!

http://www.foxbusiness.com/video/index.html?playerID=videolandingpage&streaningFormat=FLASH&referralObject=3037438&referralPlaylistID=1292d14d0e3afdcf0b31500afefb92724c08f046&maven_referrer=staf

Home sales continue to increase this spring

2008-06-26T06:32:00.000-07:00

(June 26, 2008) Home sales continue to increase each month presenting a healthy picture of the central Ohio housing market. The 2,064 homes sold in May marked a 15.7 percent increase over the number of sales the previous month according to the Columbus Board of REALTORS®.
“Low interest rates, high inventory and competitive pricing continue to fuel the housing market here in central Ohio,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “As long as we have these three critical factors in place, home buyers and investors are actively pursuing a home purchase.”
There remains a large selection of homes for sale in central Ohio. However, that number continues to decline supporting the anticipated correction in our housing market. Last month, there were over 17,900 homes for sale which is a little over five percent fewer than last year in the month of May. There were 4,703 homes added to the market in May which is eight percent lower than the 5,118 homes listed in May of last year.
“Although buyers continue to be thrilled with the large selection of homes for sale, any decrease in the number of homes added to the market is welcome news for sellers,” says Hrabcak. “As long as inventory remains high, homes are taking longer to sell and selling for less.”
The average list price of a home for sale last month was $173,826 which is 3.8 percent lower than the average list price of a home in May of 2007. Accordingly, the average sale price ($168,345) was almost four percent lower than the same month last year.
Year to date sales of new and existing homes (January through May) total 8,367, 14.1 percent behind the 9,737 sales recorded during the first five months of 2007 but only about three percent behind the market’s pre-boom period (prior to 2003).

Courtesy of the Columbus Board of Realtors

Spring Is Finally Here

2008-04-23T11:22:00.000-07:00

Hi Everyone!
I hope you have been able to enjoy the great weather we have been experiencing here in central Ohio. Our local board has created a great website giving you the facts on the local market. It is a wealth of information and a great way to familiarize yourself with our market. If you are thinking about selling or buying a home, give me a call. I'd be happy to help.

Visit: http://www.columbushousingfacts.com

Well Here's Some Good News

2008-04-03T08:21:00.000-07:00

Hi Everyone!

Sorry I haven't made a post in awhile. It has been a busy month. Here's the latest info from the local board.

Drop in interest rate resulted in more home contracts last month

(March 20, 2008) The number of homes contracted for sale in February 2008 took a very positive turn, topping contracts written during the previous three months as well as the same month last year according to the Columbus Board of REALTORS®.
“The drop in mortgage interest rates in late January generated immediate housing activity,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “Many buyers were waiting for the drop. Some used it to be able to afford their first home as the lower interest rates helped them to finally qualify for a home. Others jumped at the chance to move up to a larger home.”
Although home contracts increased, actual sales lagged last year by 5.8 percent – a carry over from the lack of housing activity during the holidays and first of the year.
The average sale price of a home last month was 156,497, a decrease of 4.8 percent from the average sale price of $164,397 in February 2007.
Fewer homes were listed for sale in February 2008 (3,538) compared to January (3,812) and February 2007 (3,417). The total number of homes listed for sale is now lower than the inventory level one year ago.
“As inventory levels have been roughly thirty percent higher than normal for the last year or so, any leveling off in new listings is a welcome sign for the market as a whole,” comments Hrabcak. “The fact that the supply has been significantly greater than the demand has resulted in lower sale prices, lengthier sales listing periods and a general concern about housing.”
“But housing, like most economic sectors, is cyclical. This buyer’s market won’t last forever.”

Courtesy of Columbus Board of REALTORS®

Home Sales & The Holidays

2008-03-04T12:29:00.000-08:00

Hi All!

This is a great article our local board published recently. It has a lot of tips and need to know items for those who had their homes on the market over the holiday season.

Home Sales slower during the holidays
(February 28, 2008) Fewer homes were put into contract at the end of 2007 which resulted in fewer closings in the first month of year. The 1,225 homes sold in January 2008 slipped 18.9 percent from the 1,510 sales in January 2007 - which was 12.2 percent higher than the previous year according to the Columbus Board of REALTORS®.
"As closings in January are a direct result of activity and contracts written 30-60 days prior, it comes as no surprise that there was a drop in closings last month," says Greg Hrabcak, President of the Columbus Board of REALTORS®. "The housing market traditionally experiences less activity beginning around Thanksgiving and into the new year. And REALTORS® had been reporting a higher than normal drop in activity."
"Homes in the $80,000 - $100,000 range, $400,000 - $500,000 and $1 million and over were hardest hit. Each of these price ranges saw decreases in sales in excess of 37 percent," added Hrabcak.
The average sale prices of a home closed during the month of January 2008 was $152,790 compared to $166,096 the previous year. The average sale price in 2007, January through December, was $165,057.
"This lower average price goes hand in hand with the sales declines in the higher price ranges," adds Hrabcak. "When fewer homes are sold in the upper price ranges, the average sale price for the month will decline accordingly. Real estate professionals understand that activity in any single month can fluctuate quite a bit. It's the direction over a period of time which we focus on."
According to Hrabcak showing activity picked up noticeably in January when interest rates dropped. "Just eight years ago, the average rate for a 30-year fixed rate mortgage was 8.21 percent. Now it's hovering around six percent. But it won't last and we encourage anyone interested in buying a home to take advantage of what a lower interest rate means in terms of buying power and building equity." Courtesy of The Columbus Board of Realtors

Who Says The Market Is Bad?

2008-01-25T06:27:00.000-08:00

Courtesy of the Columbus Board of REALTORS®.

2007 best year on record for central Ohio home buyers

(January 24, 2008) Interest rates, prices and inventory combined to make 2007 a memorable year for central Ohio home buyers according to the Columbus Board of REALTORS®.
"Despite what you might have heard, the housing market in central Ohio was going strong in 2007," says Greg Hrabcak, President of the Columbus Board of REALTORS®. "In fact, it was probably the best year on record for buyers as interest rates were really low, home prices were very competitive, and the selection was the best we?ve ever seen in this market."
Although home sales last year trailed the housing upsurge of recent years, central Ohio still ended as the fourth best year on record with 24,445 residential existing and condominium sales.
Throughout the year, there were almost 50,000 residential homes and condos listed fro sale in the 16 counties included in the Columbus and Central Ohio Multiple Listing Service (MLS). Of those, roughly half sold in an average of 108 days.
The average price of a home in central Ohio last year - $172,531 - is well below the national median price which was $210,200 in November 2007. The average sale price is also 1.2 percent lower than the average sale price of $174,688 in 2006.
"The lower average sale price can be attributed to a couple facts," explains Hrabcak. "First, because for much of the year we had roughly ten homes on the market for every buyer, many homeowners were forced to drop the selling price of their home in order to compete."
"Second, we had 22 percent fewer homes sell in the $1 million dollar range. Homeowners resistance to drop the price as well as lenders? temporary aversion toward jumbo loans likely had impact here." "And third, we saw 124 percent more homes sell for less than $30,000. Many of these lower priced homes were purchased by investors who recognized just how favorable the 2007 housing market was and took full advantage of these conditions."
"We're expecting that, with the additional drop in mortgage interest rates, more buyers will also realize that now really is a great time to buy a home."

Great News for '08

2008-01-17T06:38:00.000-08:00

Hi Everyone!
I hope you all enjoyed a safe and happy holiday season. Now that we are a couple weeks into the new year and the market is increasing in activity, I thought I'd post this article from the local Board of Realtors. This is great news for future sellers!

Home prices on the rebound

(December 20, 2007) The average price of a home sold in central Ohio last month was $170,808 - up 2.1 percent from a year ago. Year to date, the average price of a home sold is just over one percent lower than the previous year according to the Columbus Board of REALTORS®.
"As record levels of inventory have forced prices down over the last year, any sign of a home price increase is welcome," says Brad Bennett, President of the Columbus Board of REALTORS®. "Bear in mind that, although the average sale price of a home has dropped slightly this year, the value of the home has not been diminished. Central Ohio home value are holding strong."
The number of homes added to the market in November dropped almost 18 percent from the month prior. However, homes that went into contract or sold were only 13 percent lower than in October."
"Right now we have around ten homes on the market for every one buyer -- a buyer's market," comments Bennett. "A balanced market is about 6.5 or 7 homes for every buyer. So, a slowing in the number of listings added to the market is good news."
The Columbus Board of REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow and Union Counties and parts of Champagne, Clark, Licking, Fairfield, Hocking, Knox, Logan, Marion, Pickaway and Ross Counties.

In The Spirit Of The Season

2007-12-12T07:34:00.000-08:00

The picture above this post was taken on Wednesday, December 12th. This year, Faulkner Realty volunteered to purchase gifts for the children who are in the care of Franklin County Children's Services. In all, the staff and agents of Faulkner Realty donated 10 presents to ensure that our 6 sponsored children would awake to find their chosen gifts on Christmas morning. This was a great joy for myself, and my associates. We look forward to doing it again next year. Happy Holidays!

-JP

The Month of December

2007-12-11T06:28:00.000-08:00

Hello friends & blog readers! I have been reluctant to blog in the traditional day to day manner of most bloggers, but here goes----
Happy Holidays! This is the time of year that the residential real estate market goes haywire. We have approximately ten days until holiday silence hits. Many agents are torn right now because they are laiden with Holiday/family responsibilities and lets not forget all those parties. The reality is any likelihood of sales must be consummated right now.
This final push to do business will result in a paycheck for January – and, of course, for our client success in the new year. If you are buying or selling right now, don’t look for your agent to give you an honest “its going to be alright” because the bottom line is – it’s the holidays and the variables are endless. However, I am sure your agent is giving it their all. If things are quiet for you in the real estate market, do what needs to be done. If you are a seller, do your repairs and staging. Buyers! Pack your bags and be realistic about what you can afford. And what you can count on. Realtors, enjoy your family, friends and co-workers because the second week in January the floodgates open and all will be too busy to handle the details with any finesse.

The Market Correction

2007-11-27T11:55:00.000-08:00

Hey everyone!!
I hope you all had a safe and happy holiday. This was a new report that was released by the Columbus Board of Realtors. So for anyone who is thinking about whether or not is the time to list, the answer is YES!!! The market needs inventory. Especially in Clintonville! Call or email me today to get the process started.

-JP

Slower listing pace supports market correction - Courtesy of the Columbus Board of Realtors

(November 27, 2007) The number of listings added to the market in October was down for the third month in a row, a strong indicator that the market is beginning to correct itself. The 3,578 homes listed last month is down 6.9 percent from one year ago. In addition, new listings in August and September were down 8.3 percent and 5.7 percent respectively according to the Columbus Board of REALTORS®.
"The record number of listings added to the market each month has tilted the scales strongly in favor of the buyer this year," said Brad Bennett, President of the Columbus Board of REALTORS®. "As the inventory of homes has been roughly sixty percent higher than our norm, sellers have had to lower prices to compete for the buyer. This has caused home values to appear lower than they actually are. As the listing pace slows, inventory levels will drop and home prices will rise again as the market begins to correct itself."
The average price of a home sold in central Ohio in October was $164,844 which is 0.9 percent lower than the average sale price one year ago. The average sale price of a home sold in the first ten months of the year is $173,122, which is 1.5 percent lower than the year to date average last year.
"A Forbes.com study released in early October reported that Columbus Ohio is the third most stable housing market in America and further projects that we?ll see strong price appreciation in 2008," comments Bennett. "As REALTORS®, we know that 2007 has been a corrective year after several years of extraordinary housing activity. We also know, based on our experience, that central Ohio is and always has been reliable and sold when it comes to home values."

How Great Is This?

2007-11-16T08:52:00.000-08:00

This is an article that recently came to my attention. I am reposting this courtesy of the Columbus Board of Realtors website. If you care to discuss how this will impact you, drop me an email.

Columbus Ohio ranked 3rd most stable marketIn October, Forbes.com and Moody's Economy.com studied America's 40 biggest cities focusing on the state of local economies, new construction contracts, foreclosure rates, local credit markets, sales rates, affordability and inventory. Of those 40 cities, Columbus, Ohio: Ranks as 3rd most stable housing market; should boast the eight-fastest sales rate next year; and home prices are projected to increase 3.49% in 2008.

JP's New Blog

2007-11-05T12:37:00.000-08:00

Thanks so much for stopping by! As you can see from the picture above, JP is busier than ever! Be sure to check beck soon for JP's first entry!