Housing ready to bloom?

By John McGory   

Spring is in the air.  The warm weather and sunny skies improve everyone’s mood.  Spring is also the time when people consider their housing options.  The Real Estate Swami says that it may be the best time in five years to buy or sell a house.

“Housing may be ready to bloom,” says the Swami.  “The economic outlook is much improved as reflected in strong retail sales of automobiles.  New car sales are the best they’ve been in four years.”

Job creation is also on the mend.  In the first two months of 2012, the economy added approximately 500,000 new jobs.  Swami says new jobs are the seeds for a housing recovery.

“New job creation begins the domino effect in housing.  This brings new people into the housing market creating positive momentum at the rental and starter-home segments.  The housing surge then cascades through the higher-end housing market over time,” remarked the Swami.

The glut of bank-owned homes is still a drag on the housing economy but it may begin to subside.  The Swami has seen a noticeable uptick in central Ohio houses going into contract.

“In my efforts to find housing for several clients, it is clear that existing home sales are improving.  Superior products that are priced right are going into contract within days.  This is a positive sign and could bring about the first substantial appreciation in home values in six years,” predicts the Swami.

If you are considering buying or selling a home in the near future, then Swami suggests to keep an eye on local house sales.

“How close to the listing price a house sells for is a good barometer for the housing health of neighborhoods,” says the Swami.   The days of deep discounts and a housing market severely tilted in favor of buyers may be coming to an end.”  

John McGory is a licensed Realtor and partner in Webface, a content marketing company.  If the swami can help you in either buying or selling a home, then please feel free to call at 614-581-3610 or send an email to jrmcgory@gmail.com.   We will be honored to assist you.

Presidential Candidates Silent on Housing

By John McGory

The Real Estate Swami said in his last post that he would listen to the candidates regarding their positions on housing as they vie for Ohio primary voters.

Well the Swami sees he won't have to waste his time since the candidates are refusing to talk housing and real estate.

TC Brown is covering the 2012 presidential election media coverage for the Columbia Journalism Review's 2012 Election Swing State Project.  Here is what Brown writes regarding the Republican candidates' position on housing:

The Blade article, penned by Tony Cook, zeroed in not on what Romney and Santorum are talking about, but what they aren’t—the housing crisis. Cook starts by paying close attention to the candidates’ rhetoric:

Attend a speech by Mitt Romney or Rick Santorum and you’re likely to hear all kinds of claims about the economy — gas prices are too high, deficit spending is out of control, and government regulations are hindering free enterprise.

But as the two leading Republican candidates crisscross Ohio and Michigan, an odd omission has emerged in their speeches. Neither has mentioned the housing crisis.

…Mr. Santorum didn’t mention the foreclosure crisis during Ohio speeches in Columbus, Akron, and Georgetown, either.

Mr. Romney also has avoided the issue during recent appearances in Cincinnati, Cleveland, Monroe, and Shelby Township, Michigan.

That seems a noteworthy omission since Michigan, which holds its primary Tuesday, has the fifth highest foreclosure rate in the country, while Ohio ranks 12th.

The silence may result from the candidates’ taking their signals from GOP primary voters. Cook does a good job exploring the underlying reasoning, first with insight from Don Haurin, an Ohio State University economist.

In wooing their Republican base, the two front-runners are emphasizing their conservative credentials. That means an emphasis on fewer government regulations and less intervention in the free market. That message doesn’t do much to reassure those who have lost their homes or are facing foreclosure, Mr. Haurin said.

“You’re telling them there’s no help and that’s not going to win you any votes,” he said.

Cook follows that gem up with a quote from Eric Herzik, chairman of the political science department at the University of Nevada-Reno: “The easy answer to why Republican candidates don’t talk about this is they don’t have any type of solution. You can say it’s tough love, but it’s not the 30-second sound bite you want.”

The Swami thinks this avoidance of the issue is unfortunate.  Ohioans continue to hurt from the recession and not talking about the housing crisis is wrong.

"Housing and real estate are a drag on Ohio's economy.  We want answers from those wishing to lead us, not sound bites," says the Swami.

John McGory is a licensed realtor and a partner in Webface, a content marketing company.  He can be reached at jrmcgory@gmail.com.