Sun Continues to Shine on the Housing Industry

Spring is in the air and the sun continues to shine on the housing industry in Ohio, and nationwide.

In fact, sales of previously owned homes, nationwide grew to their highest level in more than three (3) years. Last week, the National Association of Realtors (“NAR”) reported a .8% increase in home sales from January to February, 2013, and a 10.2% increase from February, 2012 to February, 2013. That is the 20th consecutive month of year-over year gains as reported by Alan Zibel and Sarah Portlock in their March 22, 2013 Wall Street Journal Article: “Existing Home Sales at 3-Year High.” Lawrence Yun, chief economist for the NAR adds that “the only headwinds [faced by the housing industry] are limited housing inventory, which varies around the country and credit conditions that remain too restrictive”.

In Ohio, sales of new and existing homes from February, 2012 to February, 2013 increased by the same robust 10.2%. For those who like to look beyond the silver lining and focus on the clouds, however, sales in Northeast Ohio have reportedly slipped within this same February, 2012 to February, 2013 period. According to the Northern Ohio Regional Multiple Listing Service (MLS), and the March 22, 2013 Cleveland Plain Dealer article: “Area Home Sales Slip in February” (by PD Reporter, Michelle Jarboe McFee), the 15 County Northeast Ohio Area saw an overall decrease of 1.6% during such period. Some of the Northeast Ohio County results were reported as follows:

Geauga County: -15.0%;

Summit County: -22.5%;

Lorain County: -2.5%;

Portage County: +24.6%;

Cuyahoga County: +4.8%

Northeast Ohio’s reported price decrease, however was called into question by Howard Hanna, the president of Howard Hanna, Ohio. According to Mr. Hanna, his company showed a 24-28% increase in sales from last year.

Elsewhere in Ohio, Franklin County showed a 6.3% increase in home sales from February, 2012 to February, 2013, and according to the Cincinnati Board of Realtors, the overall Cincinnati area (including Butler and Warren Counties) posted an average 15% increase for such period.

Personally, I think it is time we focus on the more than half-full part of the glass. Throw in great “Dow gains”, low interest rates, more credit availability, and rising, but still affordable sales prices and we have the ingredients for a complete housing recovery, and something to smile about.