Ever since the tax credits for home buyers expired, sales have slumped. The numbers are staggering. In fact sales in July fell by more than 27 percent and the inventory of unsold homes on the market grew to nearly four million; that's more than a year's supply at the current sales pace. Home prices in the Midwest have tumbled nearly 47 percent.
“Nothing has been selling,” said Fred Salvatore. For nearly a year, Salvatore has had a ‘for sale’ sign in front of his Upper Arlington home. “It's been on and off on and off, you know? You'll get a few good people looking at it, and then that's it,” he said.
He recently reduced the asking price for his home by $24,000 to try to get the attention of buyers. So far he's had no such luck. He isn't alone. July's existing home sales fell nationwide by more than 27 percent from June.
While the latest numbers are the last thing any home seller wants to hear, Franklin County Auditor Clarence Mingo says it isn't all bad news. He says home sales in Franklin County are up 11 percent from this time last year. “That simply suggests that the local real estate market here in Franklin County is stronger than other places in the state as well as in the country,” said Mingo.
He says the drop was expected due to the conclusion the tax credit program and says some buyers are undoubtedly waiting for the market to dip even further before they purchase a home. “But the time will come when buyers will realize, as they always do that the market is fairly stable and now is the best time to begin purchasing and that's right around the corner at least here in Franklin County,” said Mingo.
Paul McCann may just be proof of that. Unlike Salvatore, he says pending inspection, his west Columbus home will soon be in contract; this after being on the market for just two weeks. “We're fortunate it happened this quick. It's not over yet but we're keeping our fingers crossed,” said McCann. “It kind of snuck up on us because now we have to go out and try to find ourselves a place, but it's exciting."
Meanwhile Salvatore can only hope he is soon in a similar position. “The best way I can put it, you just gotta keep going,” he said.
So what about home values in Franklin County? Mingo says they're in the process of revaluing homes and they’ll have clearer picture in about eight months. While he says they expect a dip in some places, there will likely be other places where values remain strong.
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