Perrysburg Blog

Which I rarely do.

Because you can look at the left side of my blog any day to see what new homes are on the market in Perrysburg.

But this one is mine.

This one is special.

This one is very, very hot.

1942 Tecumseh Court is in Crandenbrook.

And Crandenbrook is a FANTASTIC neighborhood.

You can walk to the park.  Your kids can walk to Ft. Meigs Elementary.

Excellent resale.

Excellent lot sizes.

I LOVE Crandenbrook (I have owned 2 houses there in the past . . . and raised my kids there).

But this house – on a quiet cul de sac, with a first floor master suite, and a three car garage is a SUPERLATIVE example of the best of Crandenbrook.  The lot, the layout, the condition – it’s all top shelf.   Priced right – what would you expect from me anyway! – at $280′s.  You can call me if you want a private showing.

Did you know you may have to pay a tax on your home?  When you sell it?

Because of the 2010 Obama Care Health Plan?

Yes.

It’s true.

But it’s also not likely.  At least not right away.

You will have to an income of more than $200,o00.

You will have to have a gain of more than $500,000.

Then you will owe a 3/8% “Medicare Tax” on your capital gain.

Some have called it the “Lawyers and Accountants Employment Tax”.

You can read the excellent article in the Washington Post for all the gory details.

So, unless you have a big bomber on River Road or the Sanctuary . . . and you inherited it . . . you are not going to pay the new tax.

(In fairness I must point out that the new tax is also on tanning, investment income, and many other things – which you WILL have to pay.)

But here’s the problem.

Honestly ask yourself this:  Are the big spenders in Washington D.C. going to ratchet the thresholds up or down in the future?

You and I both know the answer -  $500,000 will be $250,000 then it will be $25,000 (in the name of fairness) and then everyone selling in Perrysburg is going to have to fork over another 3.8% of their homes’ value at the closing table.

Count on it.

There are many.

Sewer tap fees that keep people from building.

Zoning rules that keep people from “stepping down” to the right use or “stepping up” to the best use.

But 2 that I really hate and detest, because of the “unintended consequences” that their use causes are:

1. Condo associations that want the “right of first refusal” on you or me buying into their association.

What’s wrong with that?

Example:  property has been on the market for months.  Everyone in the association knows it is for sale . . . and vacant.  But they want the right to know who is buying it so they can decide if any of their current members wants a crack at it?

Seriously?

That’s not a “right of first refusal”.   It’s a right to discriminate and try to select your neighbor.

Outrageous conduct often results from such a mischievous law.  Many years ago I was representing a divorced single parent mother.   Who hoped to buy a condo.   But the nosy neighbors did not like her single parent status and tried to keep her out.    Big mistake.  (That’s what the Fair Housing Center is for, btw).

2. Utility Bills that are the Banks Responsibility.

This one is really rearing its’ ugly head now.

From $200 electric bills to $8500 water bills.

Every little town, village, utility, and conglomerate wants my bank clients to shell out $$$$ for the utilities that the prior, now foreclosed owners ran up a tab for.

And if you don’t pay – no service. (while the house fills up with mold and water and other damage happens)

What’s the harm in that, you say?

If everyone thinks they don’t have to pay – they won’t.

If the bill keeps getting punted down the line to the next owner – at some point (which is . . . oh, right about NOW) normal business forces will stop working.  Utilities will just keep giving “free” service to free riders.   Normal Joe who pays his bill?  Sucker.   The utility is racking up bad debts and expecting you to front the money to keep them running.   Foreclosed Phil?  Once he figures out that others will pay – he will run the air and heat all the more.  Utility Dude who runs the utility?   He doesn’t have to worry about credit checks, deposits, or even shutting people off when they don’t pay!   The bank will pay someday.

Lucas County Auditor Anita Lopez is trying to put a stop to this mess.

Other counties ought to think about the consequences of their policies too.

Could be!

This chart shows that there is a move toward a more balanced supply of houses:

In the cold, cold months of Winter the 43551 had about 10 to 13 months of inventory on the market and moving off the market.

That was too much obviously.

Now?

May MSI (Months Supply of Inventory) was 4.7 months.  It was 6.5 last month.

It always drops in the Spring and Summer (mine is a seasonal business – like picking strawberries).

But the current numbers are indicative of strong demand from buyers, the continuing popularity of Perrysburg real estate, realistic sellers, and sellers moving houses off of the market.

How about prices?

Behold the numbers:

Ignore the bank numbers – and median prices for closed Perrysburg homes are right – almost exactly – where they were last year in May.

In fact, they have declined from this past Winter, which speaks of sample size issues.  The trend is steady – perhaps we have reached the end of the pricing cliff in Perrysburg?

Friday night in Perrysburg.

It went from sunny and nice to wet and wild really fast.

And, that was a little bit of wind.

UPDATE:  Now the NWS says it was a tornado!

Hit fast – south of the city limits.

My dear wife and I were off to the Perrysburg Tennis Center (that’s a great place to hide out in a storm!) and just missed seeing a barn get imploded.

Here are a few pictures of an upcoming listing I am working on . . . . now delayed while clean up occurs.

My wife has a theory -  this is the part of Perrysburg by 199/Roachton/Thompson . . . and it is where the minaret-removing tornado hit a few years ago.   It is where the horse in the air tornado hit.   She thinks it’s a vortex of lake effect and wind currents . . . well it’s too hard for me to explain.

It’s a good place to live, but you have to know how to batten down the hatches every couple of years!

It is Monday.

72 degrees and sunny.

The Federal Tax Credit program expired on Friday last week.  Back to normal.

Sometime last month the Fed stopped buying/funding Mortgage Backed Securities.   The tap was turned off.   The world?  It did not end!   Investors still want to buy mortgages!   Back to normal.

There are no major Ohio loan/bond issues being promulgated.  Back to normal.

Two offers on Perrysburg listings today:

A buyer just submitted a conventional financing loan/offer to me.

Another buyer . . . . the same.  Back to normal.

In Perrysburg real estate, with no tax credits, special government loans, and other market deforming forces THIS, today, right now is normal.

Rules for this market, now that it is finally normalizing:

1. Price is king.  Queen.  And Jack.  It’s all about price.

2. Perrysburg still get’s the “Perrysburg Premium”.  It just does.

3. Quality of life, crime, schools will continue to be more valuable.  Perrysburg ought to not mess this one up.

4. It has to appraise.  Your wants/needs/sticker price/contract price  . . . all will be validated, satisfied, and hostage to the appraisal.

5.  It’s allright to mow your neighbors yard.  Seriously.   If they are gone – foreclosed – abandoned – you can mow it.  It keeps up appearances.  It keeps out the petty crime that vacant houses attract.  It actually may increase your homes value.   Neighborhoods have to start banding together.

Here’s a three year overview of supply and demand in the entire Northwest Ohio market:

It has leveled out – the new normal has arrived.

In all their gory glory . . .

In their totality . . .

Median price change in Northwest Ohio over 36 months is -$30k.

Median price change in Northwest Ohio of closed single family homes is -$31.5k over 36 months.

EVERY house on average lost 20% to 30% in value.

My observations -

1. Ranches in the suburbs have resisted this trend more than anything else.

2. 80% of the “active” real estate agents have an idea this has happened, but are in “pricing denial”.   They eventually seem to be running out of money after 3 years of not selling any houses they have listed.

3. We really did not destroy 30% of the housing stock in either Afghanistan or Iraq.   But we managed to do it here.   Thanks!

4.  Toledo now has some of the cheapest housing prices in America, for what that is worth.

5.  This has caused some of the strongest and most well capitalized builder/developers to throw in the towel.   I have developed land, sold land, marketed new subdivisions, and done market research for new projects . . . . and I no longer can tell you who is going to do future non-condo/villa development in the suburban market.

I’ve already sold 10 houses this week.

My Team and I are hungry for more.

Some random thoughts on the Perrysburg real estate market:

• It’s encouraging to see a lot of buyer activity.  Just had one house get NINE simultaneous offers.  Nine.  Never have seen that before . . . not in 22 years of selling here.
• It’s sad to see Toledo continue to implode.   Good job there Mayor Bell!  The people leaving Toledo are heading for . . . . Perrysburg.
• It will be fascinating to see what happens to our market when the $8,000 First Time Homebuyer Tax Credit expires. Buyers must be “under contract” by April 30^th and close by June 30^th to get the credit.
• The upfront FHA mortgage insurance premium will rise from 1.75% to 2.25% on April 5^th. This will result in an extra $1,000 of buyer closing costs on a $200,000 loan.
• Not a very smart move by Perrysburg Schools to get rid of music, sports, etc.  In case you have never heard this before – but one BIG reason people move to Perrysburg and pay the “Perrysburg Premium” is the draw of the schools.   Mess with that at your peril.  Property values will go down.  Then your tax base will pay you less.   You might want to rethink that plan.
• It’s positive to see people buying homes for the right reason (to live in them!) instead of speculating on them and using them as their personal ATM.  It didn’t take long for people to learn and entire mindscapes to change.
• The foreclosure wave continues unabated.  No matter what you read.
• Static analysis of big political decisions is not working.  Case in point – the new health care bill.  It’s actually causing big employers to push thousands of people into government paid drug plans eliminating the supposed tax revenue from one little codicil in the big bill – and that little change was supposed to raise money for Uncle Sam.  Now . . . imagine if we pass a law that allows people to not pay their mortgage or to renegotiate their loan balance?  Think they just might be some unexpected consequences?  Some dynamic market-driven financial human responses?
• Finally:  This is why banks should endeavor to do “cash for keys” or short sales.   A little picture from one of the three houses I had to go and secure for 3 different banks today:

A new upcoming listing on Indiana . . .

An old REO listing on Indiana . . .

And . . . a sharp split level on secluded, hidden, hard to find Carolin Ct.