The following is our 6th annual year in review for Solon Ohio real estate. Here, we will provide a comparison between this past year and 2013 and offer commentary.
Year # of Homes Sold Ave. Sales Price Sales Price/List Price
2013 302 $303,781 95.37%
2014 268 $319,115 95.63%
LUXURY HOMES ( sales price over $500,000 )
2013 45 $655,305 95.67%
2014 35 $686,637 95.54%
2014 FIRST HALF VS. SECOND HALF OF THE YEAR
FIRST HALF 126 $303,748 95.77%
SECOND HALF 144 $338,507 95.54%
2014 was a good year for the Solon real estate market. While not as strong in terms of sales compared to 2013, we still saw a lot of positive signs.
Below is a list of 5 important things that the above statistics tell us:
1. More homes sold in 2013 vs. 2014
2. Average sales price was higher in 2014
3. More sales during the second half of 2014
4. A well priced home will receive approximately 95% of asking price
5. The luxury home market mirrored that of the overall market, less sales but an overall higher average sales price.
So, what can we take away from all of this? A relatively stable housing market positively affected by continued low interest rates.
IS IT A BUYERS OR SELLERS MARKET?
The running joke is that it depends on who you ask, a buyer or seller, but statistically is really depends on the price point.
Overall, given the number of homes currently on the market ( 94 ) and recent number of home sales per month over the last 6 months ( 24 ), there is a 4 month absorption rate. This means it would take 4 months for all of the homes currently on the market to sell, assuming no other homes came on. This would typically indicate more of a seller’s market. Keep in mind that this is the big picture of the entire Solon market and also the time of year where inventories are at the low point.
Using the same statistics in the luxury market would give us over an 8 month supply of homes, making that price point much more balanced, perhaps even favoring a buyer.
Making things even more complicated is that certain price points and even neighborhoods tend to be more popular than others, thus increasing demand and favoring those sellers.
Overall, there are a lot of factors that go into answering this popular question, but Solon seems fairly balanced at this point in time.
THE HOT POCKETS
As alluded to above, there are areas within Solon ( price point and neighborhoods ) that typically see higher demand than others.
For example, even though homes sales were down in 2014 compared to 2013, there were almost two times as many sales in the $700,000-$800,000 price point in 2014 compared to the previous year.
This had a positive affect on the increase in the overall average home price of a home in Solon last year as well.
These “hot” areas can change from year to year, especially the popular price points.
Last year we correctly predicted less sales due to the fact that 2013 was a banner year. The market simply couldn’t support more sales in 2014 by virtue of a lack of inventory during the first half of the year.
What is consistent over the last year is that a home that was priced correctly sold for approximately 95% of list price. Really nice homes ( translation – TOTALLY UPDATED ) tend to sell for more and can even expect to see multiple offers.
With interest rates anticipated to increase in 2015, we anticipate overall sales to be slightly lower this year. However, the Solon real estate market should still remain healthy.
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The above information is compliments of The Schuman Team, Amy and Dan, of Howard Hanna Real Estate Services. They specialize in Solon luxury homes, relocation, and first-time buyers.
They can be reached at 216-346-3235 or 216-403-9189 or via email, firstname.lastname@example.org or email@example.com.
The Schumans service the following Cleveland area suburbs: Aurora, Bainbridge, Bay Village, Beachwood, Bentleyville, Chagrin Falls, Cleveland Heights, Gates Mills, Highland Heights, Hunting Valley, Lakewood, Lyndhurst, Mayfield Heights, Mayfield Village, Moreland Hills, Oakwood Village, Orange, Pepper Pike, Shaker Heights, Solon, South Euclid, University Heights, Westlake, Woodmere.
Solon Ohio Real Estate – Year In Review 2014 is the property of The Schuman Team and may not be duplicated or used without their written consent.©Jan, 2015