2016 was banner year for real estate sales
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(WESTERN REGIONAL INFORMATION SYSTEMS AND TECHNOLOGY) Year-end data released by the Western Regional Information Systems and Technology, which tracks real estate sales in a seven-county region, shows healthy increases in real estate sales volume, properties sold and average sale prices. Download additional data for six areas of Logan County and the six remaining WRIST counties here: |
Local real estate sales in 2016 were the best they have ever been and agents say there is no indication the market is slowing this year.
“We had an exceptional year in Logan County and we are going into 2017 with a housing shortage,” Zimmerman Realty owner Doug Zimmerman said. “We depleted our inventory in 2016. In 2017, it’s still very early, but it looks like we are going to have another great year.”
Across Logan County total sales volume increased 27 percent from $72.1 million in 2015 to $91.5 million in 2016 and total properties sold were up 17 percent from 556 to 652, according to data released by the Troy-based Western Regional Information Systems and Technology, which tracks real estate data for a seven-county region including Logan County.
Countywide, average sale prices increased from $129,699 to $140,302 and listing prices jumped from $142,309 to $152,203 while average days on market were down from 153 to 139.
The increase is the continuation of a trend that began in the wake of the economic recession of 2008. Data shows that 378 homes sold for an average price of $108,44 for a total volume of $41 million in 2009.
“We had several not-so-good years from ’08 to ’12,” said Dava Royer, who sold her Royer Realty agency to Bryn Daring-Stewart in 2016, but continues to work as an agent. “When things opened up it seems like every year kept getting better and better.”
All these signs indicate a strong sellers market while buyers remained motivated by low interest rates and availability of loans, agents say.
“It’s definitely a seller’s market,” Ms. Royer said. “Number one, interest rates have remained record low and loans are easier to obtain now. When we get an offer, we are getting multiple offers, and a lot are offering more than the asking price.
“Second, I think people are better off right now and can obtain loans easier.”
Mr. Zimmerman agreed, adding that uncertainties about future market conditions may be at work as well.
“We do have more buyers than sellers,” he said. “I think a lot of it is the fear of interest rates rising. People are fearful prices will go up if they wait. I would say low interest rates and prices caused the increase.”
Indian Lake sales strongest in county
While the market was strong throughout Logan County, sales volume at Indian Lake increased almost 50 percent from $27.5 million in 2015 to nearly $41 million in 2016, with corresponding jumps in units sold from 184 to 245 and average sales price from $149,182 to $167,137.
Choice Properties agent Teri Frymyer, who does most of her business around Indian Lake, said, “It was our best year ever and I’ve been selling here since 1999,” she said.
Indian Lake home sales hit a low in 2010 when just 106 properties were sold for a total volume of $14 million, according to the WRIST data.
Mrs. Frymyer said much of the activity was driven by individuals purchasing second homes or moving a little closer to the water’s edge.
“It seems like so many waterfront homes sold this year; it was a lot of second homes,” the agent said. “A lot of it seemed to be step-ups; maybe someone with a house off water moving to a house on the water.
“With everything going on in the world, a lot of people like to be able to vacation closer to home or to have a place they can go to an hour or two away and get away for a few days,” Mrs. Frymyer said. “I also think people are tired of saying they will wait until tomorrow and instead of putting it off are just doing it.”
She also said uncertainty in the nation’s financial climate is making buyers see real estate as a sound investment.
“The rates are still good and the economy is good,” Ms. Frymyer said. “People are not getting great rates by putting money in the bank and there’s some fear about the stock market, but you rarely ever lose money on a house.
Around Logan County, region
Bellefontaine sales volume increased 33 percent from $15.5 million to $20.6 million with a jump from 151 to 184 properties sold. The average price also increased from $102,437 to $111,924.
The local data provided by WRIST, which is available online at examiner.org, also shows similar increases in the northwest, southwest and northeast corners of the county, while property sales in the southeast area declined by almost 25 percent from $12.2 million to $9.2 million; 70 to 57 properties; and $173,814 average sales price to $161,601.
The total for the seven counties in the WRIST region — Auglaize, Champaign, Clark, Logan, Mercer, Miami and Shelby — is also available at examiner.org. Combined sales in those counties increased 15 percent from $652 million to $751 million with an average sale price going from $121,508 to $129,790.
Statewide, the Ohio Association of Realtors also released 2016 sales data that indicates the local trend is consistent with activity throughout most of Ohio.
Total sales are up 13 percent from $21.9 billion to $24.8 billion with a 7.5 percent increase in the number of properties sold, from 141,052 to 151,594. The average sale price increased 5 percent statewide from $155,505 to $163,503.
Looking forward
While the local agents said they expect 2017 to be a good year for housing sales, they also believe a shortage of available housing is limiting the local market’s potential.
“We are in desperate need of new housing,” Ms. Royer said. “The track housing you see in bigger cities — where you can go down the street and see new houses for sale — is just not available. We are pushing to get construction and developers in to get new housing.”
Part of the problem stems from a lack of local homebuilders willing to invest in new houses to be listed on the market.
“After we lost Westerman and LPZ and Younkman, the local homebuilders’ market never had any construction companies step up and pick up slack,” Ms. Royer said.
“If we had more new houses out there, people would be interested and it would open up our inventory even more.”
Currently, Ms. Royer said she knows of only three houses under construction in the city and they are being built by homeowners under contract with a construction firm and will not be listed on the market.
“The majority of what we’re seeing are baby boomers building new houses and moving up,” she said.