According to Real Trends March was the seventh straight month where national housing sales were above the same month in 2009.

Chart from latest newsletter from Real Trends

Overall the Midwest is holding its own in both closed sales and average price.  As expected the market is reacting to the current tax incentives.  (today is the last day for eligibility-must have accepted purchase contract)  The big question- what happens to the housing market when it has to function without incentives.

Stay tuned.

Given the cooler temperatures, massive amounts of growing grass and a simple self propelled lawn mower choking itself on the wet turf….I am seriously considering  “green” lawn maintenance options.

In simple terms “Shadow Inventory“  describes foreclosed properties currently owned by banks (or will be owned in the future) that are sitting empty and are not currently for sale.  According to the Wall Street Journal calculations it would take 103 months -that’s 8.5 years- to sell all the foreclosed property.

The staggering number worries not only the economists -it’s causing headaches for you and me-the normal property owners.  Excess inventory and fewer buyers will continue to stress the housing market throughout the country for a long time.  However the bigger problem for the average homeowner may be the blight these unmaintained properties are creating in normal neighborhoods.

For example- this property has been vacant since last year and while snow piled up in the winter- it’s the lack of care and maintenance that is affecting the neighborhood now.  The grass and weeds grow higher each day.  Imagine you have a home/condo for sale and the potential buyers must drive past the property- it makes an impression about the neighborhood.  No excuses needed- we know the REO departments are overloaded with management of all this inventory- but how about hiring enough staff to handle the details.

Foreclosures have been piling into the system for the last 2 years-which seem like more than enough time to staff up.  The longer the “shadow inventory” remains in poor shape- the lower the sales price.  And lower sales prices impacts appraiser’s numbers for other sales in the neighborhood. 

Ultimately- we all end up paying for foreclosures.

This week’s data is interesting because it highlights the fact that approximately a third of the market has lowered their list prices. Sellers need to remember that pricing correctly is critical in this buyer driven market.

Below is the Market Action Reports for 6 zip-codes in the greater Cincinnati area:
45011

45014

45040

45069

45208

45233

This is the short version of the detailed information available for the zip-codes- call or email for detailed reports.

In greater Cincinnati, West Chester, Mason and throughout the country there is a definite uptick in remodeling in lieu of moving.  And while I am a great believer in maintaining and upgrading your property -my biggest concern, as a Realtor, is that you don’t assume $10,000 invested turns into $10,000 (+) when its time to sell.

Hanley Wood has a neat site that provides detailed analysis on remodeling value versus costs for the greater Cincinnati market. (If you are reading this in Chicago- just click on appropriate area)  Also in this weekend’s the Wall Street Journal “The New Rules of Remodeling“.

Need a professional idea of what your house is worth in today’s market- call or email me now for a comprehensive Competitive Market Analysis.