Throughout Ohio, home sales rose 20.5 percent in April 2013, the 22nd consecutive month of sales increases in the state real estate market. The average sale price from January to April 2013 was $128,547, a year over year increase of 5.1 percent. A recent poll of Ohio real estate professionals showed that confidence in the market’s future is moderate, with 68 percent of realtors predicting a rise in Ohio home prices of up to 5 percent in the next year.
In Fairfield County, local real estate professionals are noting that lots which sat vacant waiting for buyers during the recession are beginning to see increased activity, as buyers are more willing to invest in new construction in an improving economy. From April 2012 to April 2013 home sales in Fairfield County increased by 21 percent, though the median sale price experienced just moderate gains, from $141,685 to $144,439 during the period.
Where to Find Foreclosures in Ohio: Dayton
The Dayton real estate market is experiencing moderate gains in volume and small price increases. From April 2012 to April 2013 sales volumes in the Dayton market rose 14.5 percent, with 1,085 transactions recorded in April 2013. The greater availability of properties may have helped suppress greater price increases, as the average sale price increased just 0.9 percent during the same period, from $123,005 to $124,085.
The manufacturing infrastructure and relatively low cost of doing business in Dayton are signs of strength for the local economy, which is also helped by proximity to the Wright-Patterson Air Force Base according to Moody’s Analytics. Foreclosed properties within reasonable commuting distance of the air force base may be suitable for rental conversions for servicers and contractors working on the base, pointing towards potential investment moves for foreclosure buyers.
Where to Find Foreclosures in Ohio: Toledo
The Toledo real estate market is largely stable, though there are signs that activity is preparing to pick up. 632 units were sold in April 2013, as compared to 610 units in April 2012. However, average sale prices dropped 0.8 percent over that period, from $99,026 to $98,241. Vacancy rates in Toledo are high, at 15.85 percent, with 5.6 percent of current active listings considered distressed. However, as in many areas in Ohio that were hit hard by the foreclosure crisis, there is suspicion of a high rate of foreclosed “zombie” properties that are vacant but not listed for sale as banks wait out the economy for greater signs of recovery and strength in average home prices.
Toledo’s relatively weak economy and a recent flow of out-migration are partly to blame for the slow pace of its real estate recovery. However, Moody’s Analytics points out that Toledo has a strategic export location that could potentially be exploited, as well as a strong healthcare services base. These industries could help prop up a recovery once the backlog of foreclosures is worked through, raising property values across the board.
The affordability of new construction, helped to no small degree by continuing low interest rates, is creating a divide in many Ohio housing markets wherein older homes and foreclosures may take longer to sell due to the price competitiveness of new build outs. Projections are calling for existing lots ten years and older to fall further in price, which could further lower prices on existing older homes. However, any further decreases are likely to be relatively slight; those ready to buy foreclosures in Ohio can start working with foreclosure listing services now to lock in the opportunity to buy the most desirable foreclosed properties.