2012 Ohio Housing Market Predictions & Forecast

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In the 2011 local housing market we can see that home sales in Dayton Ohio increased, but the average sale price of homes in Dayton decreased in comparison to 2010. I know that I can’t speak for everyone, but it seems as though the real estate industry has been “booming” in our office lately. Interest rates are so low that people who have the ability to buy a home right now are taking full advantage of this opportunity. I can’t tell you how many times myself or Neil have submitted an offer on behalf of a buyer/client and immediately gotten a response of “There has already been an accepted offer on this home.”

Think The Housing Market is Slow? Get Real….Estate!

For the first time in a few years, I am seeing buyers submit full price offers on worthy homes. Why? Because many sellers have listed their homes for the absolute lowest price that’s reasonable. Honestly – you can only lower the asking price of a home so much before you’re just giving it away. At that point, it makes more sense to just stay put until the housing market shows some sign of relief for sellers. I think that buyers are starting to realize that a seller’s asking price in this market is not only reasonable, but also much lower than the home’s actual worth.

2012 Real Estate Market prediction: “The Market Is Improving Daily!”

I’ve seen forecasts predicting the 2012 housing market will show positive signs for both buyers and sellers. With the housing market finishing strong in 2011, I think we will see signs of a more stable housing market by the middle of 2012. I am wondering, however, if that “stability” is going to stem from all of the foreclosures and “Real Estate Owned” (REO’s) that are about to saturate the housing market. For those of you who are unfamiliar with “REO’s,” here’s the scoop: An REO (Real Estate Owned) property is one that is owned by a lender – generally a bank, government agency, or government loan insurer – after an unsuccessful sale at a foreclosure auction.

So, my predictions for the 2012 housing market are as follows:

  • The housing market will once again be flooded with foreclosed homes and REO’s
  • Interest rates will remain steady somewhere under 4% (AWESOME)
  • Buyers are still holding the winning hand (low interest rates combined with lower than usual asking prices)
  • Sellers are going to see a little relief (should be able to ask & get a little more than you could’ve in 2011)