Sat Nov 07 2009
By HEATHER BAUGHMAN
Just over 300 houses are for sale in Defiance County, a number that is higher than average, making real estate in northwest Ohio a buyer's market. However, sellers are still keeping their eye on the bottom dollar and many are not allowing buyers to "steal" their properties.
Despite the national news that housing markets are crashing and prices are dropping faster than flies, numerous local realtors have said that the market in northwest Ohio is holding steady.
"Defiance has always been different than the national average," said A.J. Minton of Sam Switzer Realty.
In fact, Re/Max Realty of Defiance broker/owner Brent Joost said, "The market is still fairly solid," pointing out that the courthouse is recording, on average, 80 real estate transfers per month, as opposed to 89 per month last year.
"It's not as many, but we're not far off," Joost said.
Kyle Moore of Reiser Realty in Napoleon said the market has been "a little bit slower," but added, "there are buyers out there."
And those buyers, he said, are tending to take their time choosing the "right" home, especially since there are a lot of houses for sale at the moment. "I feel that this is the time to buy," he said.
Any fears by homeowners that the local market will react the same as the national market is put to rest by Joost. "Metropolitan areas, where there is a rapid increase in values on an annual basis, are more likely to see a fast drop in real estate. ... If (prices) go up quickly, they're more likely to go down quickly."
Unlike some fast-growing and heavily populated areas where home prices may rise at a rate of 30 percent a year for several years, Joost said Defiance's real estate has been rising, on average, 3 percent a year for about the past 15 years. "It's had a real nice, gradual upswing in values," he said, which has lead to steady prices on homes.
But, the increase in foreclosures in the past few years has had the market feeling a bit volatile.
In 2006, the Defiance County Sheriff's Office had 122 foreclosure, or sheriff's auction sales, averaging 10.2 a month. So far this year, there have been 103 sheriff's auctions, averaging 11.5 a month. "All in all, the market is not as strong," Joost said.
He went on to explain that, often times, banks buy back homes that have been foreclosed, then hand them over to local realtors to sell -- one reason for the increase in homes on the market.
Personally, Joost said he believes more homes are on the market because "the banks and mortgage companies are making it too easy to get a loan. I see so many people who borrow 100 percent. Then, if they get behind (on their mortgage payment a month or two), they just walk away from the house.
"If they put 10-15 percent down, they will work hard to keep their homes," he said.
Those who are purchasing homes are searching in the $75,000-$150,000 range. The average sale price in Defiance on the Multiple Listing Service (MLS) is $120,000.
"If you get a good listing, it sells pretty quick a lot of times," Joost said.
State Bank and Trust Co. residential mortgage loan officer Denise Davenport said customers are still stopping by to apply for mortgages; they're just asking for less. Mirroring what local realtors say is selling, Davenport said customers are sticking to the $100,000 price range.
Overall, Davenport said, "We shouldn't see much of a slump" and, she added, "rates are great."
With about 60 more homes for sale than the average, Joost said the market has shifted to a buyer's market, however, he warned: "Buyers are not able to steal properties.
"People try to offer (sellers) 20 percent less," Joost said, thinking that with the number of homes on the market the buyer can dominate a sale. Instead, Joost said the seller will simply reject the offer.
"Often times, the seller still needs their equity to buy something else, so they're just patient and wait for a good offer."
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