Amy April 14th, 2007
Real Estate is an Investment in Mount Lookout, Hyde Park, Oakley and East Cincinnati
Cincinnati Real Estate is an exciting industry, or hobby, depending on your current occupation. For me, it is both, as I am a Full Time, Resident Realtor, with a focus on Mt. Lookout, Hyde Park and Oakley, and the East side of Cincinnati in general. As a Certified Residential Specialist as well as a Hyde Park area resident, I find the numbers I am about to show you as vital as the air we breathe. I don’t think I have been involved in a conversation in a social setting in the last two years where the Real Estate market wasn’t a large topic amongst my local friends and acquaintances, in the midst of buying or selling in this market.
It is somewhat of a buyers market still, I would venture to call it a Price Correction Period, but even with that, we are seeing great appreciation figures over 5, 3 and 2 years after purchase. Let me show you some specific information that was compiled through several MLS searches I run on a regular basis to help me and my buyers and sellers understand the current market.
This information was complied through the use of the Cincinnati MLS, creating a 90 day snapshot of the local market, and later in the article, a look 5 years back at the average increase in values over time. I hope you will find this information informative and unique, and should you have any additional questions, you can reach me. See each of these charts attached to this blog, the first pertains to the Market Analysis and is called Q1 Area Numbers, and the second group of figures can be found in 2006 Area Appreciation.
Mount Lookout Local Market Analysis and Absorption Rate
In the last 90 days the Mount Lookout market has seen 127 homes go on the market, sell or go pending. Of those 127, 35 were sold in the last 90 days, 20 are pending a closing and 72 remain for sale today. The average home sold in Mt. Lookout is priced at 466,475 and the average sold home sells for 323,932. The average home has 3 bedrooms, 2.97 bathrooms and remains on the market for an average of 73 days. 54% of the time, homes in Mt. Lookout sell in less than 30 days, at about 95% of their list price.
Let’s take a look at what these numbers mean to you, the Mt. Lookout seller. Based on the figures above, 18 homes go under contract each month in Mt. Lookout. If there are 127 people in line to sell their homes, and 18 go under contract each month, there is a 3.9 month supply of homes on the market in Mt. Lookout. This means that if no other homes come onto the market, it will take your Mt. Lookout home about 3.9 months to go under contract on the long end, 73 days average, and 54% of the time in 30 days or less, giving your home a 25.5% chance of selling in 30 days.
Hyde Park Local Market Analysis and Absorption Rate
Hyde Park remains to be the solid anchor keeping Mount Lookout and Oakley planted in strong Real Estate Values and Sales in Cincinnati. In my recent assessment of the Real Estate of these three beloved cities of Cincinnati I have always found most consistent the Hyde Park area.
In the last 90 days, Hyde Park has had 195 homes enter the market. Of these 195, 49 have sold, 26 have pending contracts, and a remaining 120 are still for sale. In Hyde Park the average list price is $466,218 almost identical with Mount Lookout, but in Hyde Park the average Sale price is $511,250. The average days on the market for these Hyde Park homes are 83 days. In Hyde Park 44% of the homes sell in 30 days or less, with 24% taking more than 120 days to sell. The average list to sale price percentage in homes selling in Hyde Park is 91%. The average Hyde Park home has 4 bedrooms, and 2.86 bathrooms.
Let me put these numbers into perspective for the Hyde Park seller. This means that of those 195 sellers, 25 of them go under contract each month. If there are 195 people in line to sell their homes, and 25 go under contract each month, there is a 4.8 month supply of homes on the market in Hyde Park. This means that if no other homes come onto the market, it will take your Hyde Park home about 4.8 months to go under contract on the long end, 83 days average, and 44% of the time in 30 days or less, giving your home a 20.8% chance of selling in the next 30 days.
Oakley Local Market Analysis and Absorption Rate
Oakley is known in the Hyde Park area as the starter home neighborhood. The average home prices are lower, but the return on investment beats both Mt Lookout and Hyde Park in a 5 year period! The homes are generally a bit smaller than the neighboring two areas, and therefore, its resident’s tend to move up to the Hyde Park and Mt. Lookout area as their families begin to grow! Not too many people desire to leave our little triangle where shopping, restaurants and parks are so convenient and friendly; you just can’t imagine living anywhere else!
In the last 90 days the Oakley market has seen 124 homes go on the market, sell or go pending. Of those 123, 42 were sold in the last 90 days, 23 are pending a closing and 59 remain for sale today. The average home sold in Oakley is priced at $197,703 and the average sold home sells for $184,368. The average home has 3 bedrooms, 1.73 bathrooms and remains on the market for an average of 71 days. 30% of the time, homes in Oakley sell in less than 30 days, at about 94% of their list price, and another 28% take more than 120 days to sell, at about the same 94% of their list price.
Taking Hyde Park, Mt. Lookout and Oakley under the same umbrella, the Oakley market is much different from its bordered areas, for the better and for the worse. In Oakley, we see more first time buyers finding some great homes with wonderful appreciation rates. The average sale at $184 is an excellent price point for the first time buyer.
Let’s take a look at what these numbers mean to you, the Oakley seller. Based on the figures above, 21 homes go under contract each month in Oakley. If there are 124 people in line to sell their homes, and 21 go under contract each month, there is a 2.7 month supply of homes on the market in Oakley. This means that if no other homes come onto the market, it will take your Oakley home about 2.7 months to go under contract on the long end, 71 days average, and 30% of the time in 30 days or less, giving your home a 36.7% chance of selling in 30 days. More people can afford the average price of the homes, therefore more people will be able to buy, and more do in Oakley!
Entire East Cincinnati Local Market Analysis and Absorption Rate
In the last 90 days the East Cincinnati market has seen 4092 homes go on the market, sell or go pending. Of those 4092, 866 were sold in the last 90 days, 618 are pending a closing and 2608 remain for sale today. The average home sold in East Cincinnati is priced at $323,651 and the average sold home sells for $226,599. The average home has 3 bedrooms, 2.56 bathrooms and remains on the market for an average of 88 days. 35% of the time, homes in East Cincinnati sell in less than 30 days, at about 96% of their list price.
Let’s take a look at what these numbers mean to you, the East Cincinnati seller. Based on the figures above, 494 homes go under contract each month in East Cincinnati. If there are 4092 people in line to sell their homes, and 494 go under contract each month, there is a 5.3 month supply of homes on the market in East Cincinnati. This means that if no other homes come onto the market, it will take your East Cincinnati home about 5.3 months to go under contract on the long end, 88 days average, and 35% of the time in 30 days or less, giving your home a 19% chance of selling in 30 days.
In the areas that I concentrate on servicing, Hyde Park, Mt Lookout and Oakley, the market data shows a shorter time to sale, as well as a higher list to sale ratio, with a higher chance of selling in the next 30 days.
Cincinnati is always a conservative city, even in the Real Estate Market
Believe me when I say these numbers are great compared to other areas of Cincinnati and the USA. The actual buyers market is defined as when the supply of homes is more than 6 months in a given market. As you will see in the Hyde Park areas including Mt. Lookout, Oakley and in East Cincinnati, we are all under this 6 month supply. This is great news, but, we are still in a depressed market. We are just smart about it.
This Real Estate market that we are in today is about correcting the abundance of appreciation we have been seeing on the homes in this area. In California and New York where Real Estate was in a tremendous boom, selling 2 bedroom 2 bath flats for $800,000 in the early 2000’s have now plummeted to $400,000 or less is in much more of a stressed market correction. Being that the areas of Mt. Lookout, Oakley and Hyde Park are one of the better appreciating areas of Cincinnati, we feel this price correction a little more than the whole of Cincinnati, similar to California and NY feel it stronger than the rest of the US. In the past, we have thrived on selling our homes for $50,000 to $100,000 more than we purchased for a few years ago, getting our price and moving on. Today, it is not that way. Experiencing our own correction, in Mount Lookout, Hyde Park and Oakley, we need to be mindful of value, we are not getting the tremendous margins of appreciation we were seeing in the late 90’s early 2000’s, but we are holding our own much better than other areas of Cincinnati. So while we aren’t making as much as we did in the past, or we would like to be making on the sale of our homes, we are still ahead of most of the 100 other suburbs in the area in our return on investment. Compare these numbers below with the 2 year return on your Proctor and Gamble stock at 14.5%, or your Fifth Third stock at -11.6% of the S&P500 up 21%, all beat by our local Real Estate appreciation!
Mount Lookout Real Estate Appreciation and Return on Investment
Mount Lookout is the #7 area in Cincinnati for return on investment over a 5 year period with 39% return, and it is #6 in Cincinnati for highest average sale price at $387,511 in 2006. Mt. Lookout’s latest 3 year return on investment percentage is a strong 32%, and in 2 years, 25%.
Hyde Park Real Estate Appreciation and Return on Investment
Hyde Park is the #10 area in Cincinnati for return on investment over a 5 year period with 33% return, and it is #5 in Cincinnati for highest average sale price at $408,247 in 2006. Hyde Park’s latest 3 year return on investment percentage is a strong 41%, and in 2 years, 12%.
Oakley Real Estate Appreciation and Return on Investment
Oakley is the #6 area in Cincinnati for return on investment over a 5 year period with 40% return (beating out Mt. Lookout and Hyde Park). But, in converse, it is #28 in Cincinnati for highest average sale price at $191,721 in 2006. Oakley’s latest 3 year return on investment percentage is a strong 29%, and in 2 years, 12
Each of these three areas are clearly a great area to invest in your home for a long or short term.
Hamilton County Real Estate Appreciation and Return on Investment
Compare the numbers for the above areas to those of Hamilton County as a whole, where the average home sale in 2006 was $181,206. The five year appreciation in the entire Hamilton county was 8% followed by 5% for 3 years and 2% for 2 years. As you can see the Mt. Lookout, Oakley and Hyde Park areas provide a better return on your investment than the whole of Hamilton County.
Amy Broghamer, an Expert Realtor, will advise you to make the best Investment based on your goals
As a Certified Residential Specialist, I am trained and educated in analyzing the market the way no part time or new Realtor knows. I not only assess the market in the ways I have shared with you today, but countless other aspects of the area and home are taken into consideration when I price a home for sale, or help a buyer decide on an offer price in this area. What all buyers want to know #1, is this a good investment of my money and time, obviously in Mt. Lookout, Hyde Park and Oakley, the answer is YES!
If you would like more information on the Mount Lookout, Hyde Park Oakley or other East Cincinnati areas, home sales, or an idea of what your home might sell for in today’s market, give me a call and I will be happy to give you specific details of your home today’s market, where ever you might be living/investing!
Tags: Hyde Park, Mount Lookout, Oakley, Value
We’re seeing it happen — local businesses sometimes can’t withstand an economic downturn and must shutter their doors.
Another article about the over supply of homes, this time focusing on new construction, suggests that the bottom is not here yet. A Wachovia economist suggests that the housing market will not hit bottom until mid 2009 to mid 2010. While I agree no one has a crystal ball, mid 2009 is over a year from today, and next summer or the summer after may be the bottom. What that means to the home SELLER, SELL NOW! If you don’t want to lower your price today to get your home sold because you want more equity, next year will likely give you even less or bringing money to the closing table. Which is worse, less money this year, or having to pay money next summer or the summer after?
