Here is our official 3rd quarter home value report for Solon Luxury Homes complete with a comparison to 2009.
Please keep in mind that in the Cleveland real estate market, the definition of a luxury home is one that sells for at least $500,000. Commentary to follow.
Here are all luxury homes that sold in Solon during the Third Quarter of 2010:
|39755 Lochmoor Dr||$510,000|
|6512 Dorset Ln||$582,000|
|29775 N Park Blvd||$710,000|
|5185 Leighton Ct||$725,000|
|37471 Cherrybank Dr||$765,000|
THIRD QUARTER 2010 VS. THIRD QUARTER 2009 COMPARISON
Luxury Sales # of Homes Sold Ave. Sales Price Ave. Days on Market
2010 6 $673,250 145
2009 9 $560,247 131
YEAR TO DATE COMPARISON
2010 20 $641,088 170
2009 27 $600,069 129
Through the first three quarters of the year, we have less luxury home sales in Solon than at this time last year, and the market for homes priced over $750,000 remains extremely soft. However, the average home price has increased from 2009. So, what does that mean for the values of Solon luxury homes?
To begin, it would not be fair to look at the above statistics and make a blanket statement that Solon luxury home values are up around 7%. The increase in the average sales price is more likely due to a lower number of distressed luxury homes being sold this year than an actual increase in home values. However, we feel that prices at all levels are no longer decreasing and have leveled off. In addition, appraisers that we have spoken with say that Solon is seen as a stable market in terms of home values although they are taking a little longer to sell.
The interesting thing to note is that many surrounding suburbs are seeing an increase in both sales AND average home price, especially in the luxury home market. So why is that?
We believe that the demand for a luxury home in Solon is just as high if not higher than in any neighboring suburb. The fact is that if someone wants to buy a luxury home on the East side of Cleveland that has been built within the last 10 years, Solon is pretty much the only place to go. Added to that, Solon has one of the top-rated school systems in the State of Ohio. However, the sellers here are in a different situation than luxury home sellers in older areas of town, and here’s why:
All of the people who are selling a luxury home here in Solon bought or built their home when prices were higher. The market appreciated during the first part of the decade, peaked in 2005, and then declined. In fact, many economists believe that housing prices are currently at the same levels as they were 10 years ago. In addition, many current sellers, especially those that bought new construction, spent a lot of their own money on landscaping, window treatments, and perhaps even a finished basement. Therefore, there is a big difference between what a seller has put into their home and the current market value.
Simply put, most sellers either cannot afford to sell at the current market price, or are refusing to accept the loss they will have to take. When pricing their homes for the market, many sellers look at what they paid, add how much money they put into the home, and come up with a listing price. This strategy just doesn’t work in today’s market, or in any market for that matter, as evidenced by the sales numbers listed above. There is simply a disconnect between Solon luxury home sellers and the price buyers are willing to pay for a home. We are certainly not trying to be negative here, but that is our honest assessment of why luxury home sales in Solon are down.
When trying to determine the value of a home in Solon, it is important to have an reliable method for coming up with value. Looking at national or even regional housing statistics is nice, but is not necessarily relevant as real estate is very local. The best way to value a home is by finding out what similar homes in the same neighborhood have recently sold for and account for any differences that these homes had compared to the subject property.
The bottom line is that nice homes priced well still sell in any market, but expecting to make money if you bought recently simply isn’t realistic. This may be harsh reality for some sellers out there, but it is the nature of the market.
When all is said and done ( and I’m not just saying this because I’m an agent ) there is no substitute for having a local real estate expert help with this process, specifically someone who has personally been inside many of the homes here in Solon. Below are past articles that relate to the content of this post.
About The Authors
The above information pertaining to Cleveland Real Estate News was provided by The Schuman Team, Amy and Dan, of Howard Hanna. They can be reached at 216-346-3235 or via email, danschuman@howardhanna or amyschuman@howardhanna.
We service the following Cleveland area suburbs: 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 Luxury Home Value Report 3rd Quarter 2010 is the property of The Schuman Team and may not be duplicated or used without their written consent. ©October,2010