Real Estate Market Summary 2008 – Orange Village Ohio

2008 was a good year for Orange real estate. Having an excellent rated school system and having a limited inventory of homes makes Orange a desirable place to live.

I know what a lot of people are thinking, how could it have been a GOOD year when the media is constantly painting a picture of doom and gloom in the real estate market? Well, for starters, there were just as many homes SOLD in Orange in 2008 as in 2007, a total of 37 homes in each year. In fact, over the last 5 years, Orange has averaged just under 40 homes sold per year. Homes also sold quicker in 2008 than they did in 2007 and 2006.

Now here’s the not so good news, the average sales price of a home in Orange went down in 2008. Here is a brief summary of a comparison between 2008 and 2007. 

All Sales     # of homes sold     ave. sales price     ave. days on market

2008                37                     $301,994                  90 

2007                37                     $402,863                  133

Commentary: Overall, homes are selling in Orange and quicker than they have on average since 2005.  The average sales price in 2008 of $301,994 vs. the average sales price of $402,863 in 2007 at first glance looks very concerning as it appears that homes in Orange decreased in value over 20%. However, with such a small number of sales, statistics can be somewhat misleading. Yes, values have gone down over the last 5 years but bank owned homes and short-sales contributed to the unusually low average sales price in 2008. Taking out distressed property, the average home price in Orange this past year was closer to $332,000 while the average sales price over the last 5 years has been $370,000.

The main problem over the last few years is that sellers had unreasonable expectations of the value of their home based on unprecedented appreciation during the early part of the decade. During the real boom years of 2003-2006, homes in Orange were statistically appreciating at 5-9% a year. Normal yearly appreciation here in Orange and Northeast Ohio in general is only about 2-3%. So, instead of basing their price on realistic market conditions, many sellers would look to see what similar homes were selling for and add 10% to get their listing price. They assumed the market would keep going up at this unrealistic pace. Many sellers merely priced themselves out of the market and did not properly react to the downturn. It has taken 2 years for sellers here to realize that the market is depreciating and to become more realistic with their price if they really want to sell.

On the other side, news is great for home buyers. Rates are at historically low levels and there are a lot of competitively priced homes here in Orange.

For more information on the Orange housing market or for a personal consultation, contact Dan Schuman at 216-346-3235 or visit us on the web at www.schumanteam.com.

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