Perrysburg Blog

The Perrysburg Farmers’ Market.

Which starts most Thursdays at 3PM.

And is on today, for the first time, in 2012.

It’s a great Perrysburg tradition, filling the first block or two of Louisiana Ave. in downtown Perrysburg.

I personally think that they should block off the street . . . but it’s running fine as it is, so why make changes.

I have a report, from one of my crack in the field reporters, that there are now fresh macaroons being sold there that are reminiscent of my wife and my favorite treat in NYC and Paris – Laduree.

Make what use of that you will . . .

Since I just got back from a conference in America’s most cosmopolitan, outward looking city – New York City – where you are prone to hear German or French or Russian voices as you walk on 5th Avenue – I thought about the foreign buyer in Perrysburg.

There are a lot of them!

They come here to buy.

They come here because Perrysburg real estate is a very safe buy.

They come here because of the schools, the lifestyle, and obviously the employment.

And they buy a lot of real estate -  MSNBC.com reports that foreign buyers bought over $80 billion in US property in 2010.  That was up from $66 billion in 2009.

I have sold property in and around Perrysburg to buyers from the Ukraine, Poland, Russia, France, Great Brittan, China, Vietnam, Australia, Japan, Saudi Arabia, Syria, Egypt, Italy, and Canada (is Canada that foreign?).

What are foreign buyers looking for in Perrysburg?  The exact same thing that any buyer is -  a good deal, a great floor plan, a nice lot, and no surprises.

When many foreign buyers look at our prices and values I believe that they inwardly, secretly chuckle at how cheap our prices are and how large our lots are.

The best thing to do is look at a map – maps are my favorite tool!

Here’s one view of the flow of “Euro Buyers” into the US, courtesy of Trulia.com

One thing to think about – the three largest home sales EVER in America were all to . . .  foreign buyers.  This is one, in California.  It sold for $100,000,000.  To a Russian.

I talked to a friend of mine who knows the Russian speaking Realtor who wrote the contract for Yuri Milner, the Google/Hedge Fund type investor.  I think that he was sad – he will never, ever in all of his career close on a deal that large again.  Must be sad to realize that!

The market is cloudy.

Like our local weather.

It seems like just yesterday it was sunny and bright and warm.   Then . . . BOOM . . .  Fall arrived.

What clouds do I see in the local market?

1. Fixed mortgage rates are low.   And addictive.  I wonder what will happen if rates return to a more “normal” 6 or 7%?   Low rates are a boon to buyers today.   Addictive.  Great tasting.  And will be a curse to sellers in the future.

2. FHA problems.   Loan limits are moving down tomorrow.  And that’s not a big deal here – but the future of the FHA program is now suddenly important to Perrysburg.   A majority of deals in and around Toledo are now FHA funded.   Take FHA away and the bottom will fall out of the market.

3. Appraisal problems.   One of my jobs now is managing appraisal issues.  Up front.  And after the debris of a wrecked deal.   The mortgage implosion has caused the REO explosion.   The shrapnel?   It flies over at supersonic speed and hurts your sale or purchase.

4. The Bifurcated Market.   There are really two markets now.  One for the wealthy.  One for everyone else.   I am certainly not interested in “social justice”.  But a healthy market has movement.  People moving up.  People moving laterally.  People aspiring to invest and save and gain.   Somehow in a diminished, “soft” America with an increasing stratification of incomes and assets we are losing that.

5. More delinquent mortgages in the 43551.   Big news – more and more nice houses in Perrysburg are going to be foreclosed.    I have never in my 23 year career been working on more distressed, big, nice houses in Perrysburg than right now.   And – it’s happening all over America.

6. Rentals.   There is a shortage of them right now in Perrysburg.  Markets hate imbalances.  So – if this continues you may see more rentals being developed here.  More houses being converted to rentals.  And higher rents (good if you are a landlord, bad if you are a renter).

7. Falling incomes.   Which is not something we are used to here.   We are used to wage increases.   Inflation.  Increasing prices. But wage drops?   Effects here are hard to predict.  This could, if it continues, lead to lower property values.  Lower prices for all assets.   And downward pressure on rents and taxes.  More market uncertainty.

8. Boomerang Kids.   What?  What is that??  Kids, done with college *(hopefully not with a degree in Ancient English Poetry or Integrative Social Work for Aleutians!) who are bereft of job opportunities.   Lots of my clients in Perrysburg have had to welcome their progeny back.   So if they are selling or need to sell or buying and need to buy – those extra bedrooms that were empty and contained old PHS trophies and Saturday Night Fever posters . . . are being used again.

These are some clouds on the real estate horizon in Perrysburg.   What clouds do you see?

The owner lost his job.

The mortgage went unpaid.

Everything started being delayed – repairs, etc.

The bank foreclosed.

The house went for sale.

I sold it.

A local family bought it  . . . because they cared about the street/neighborhood/city.

They have repaired and renovated it . . .

Here is the “before and after” shot . . .

Do you think that the neighbors are happy?

Which I do from time to time.

Like today.   I just listed 3 homes in Toledo.   1 in Elmore.  1 in Oak Harbour.  And 2 in Perrysburg.

One in Perrysburg is on Eckel Junction – just down the road from where I used to own a house.  So . . . I know the neighborhood quite well.

You can walk over to Rivercrest Park – with or without the kids.  With or without the dog – but he ALWAYS wanted to go because there are always a lot of little and big dogs to sniff and or wag your tail at.    There are ball games going on.   The Y is right down the street.   And, of course, your kids can walk or ride to Ft. Meigs Elementary.

So it’s a pretty nice area to live in.

This house?  One owner.  Center-hall floor plan.  3 car garage.  And these are all very good features.   It feels “big” and has 2 laundry rooms – one up and one down.  The basement is finished too.

$280′s.   With a, did I mention it already . . . 3 car garage.

It is in true mint condition.

I admit it has been hard — for there are 2 markets in my world right now.

There is the Toledo Residential Market.   You know the one.  Lot’s of downward price pressure.   Some serious real estate problems that a lot of serious people are doing their best to fix.   That’s one market.

Then there is, at least in the scope of this blog, the Perrysburg market.   Fewer houses than normal on the market.   Less price pressure.   But still the buyers who are buying are not dumb.   They look over the Maumee River or back to whatever market they are moving here from . . . and they want a deal.   Even in little old Perrysburg.

They want the house to be in perfect condition.

With everything working perfectly.

And they want to move in right now.

Both markets are functioning but they are functioning differently.

Perrysburg buyers need to be very careful with the pricing strategy they are using and very sure of not only their financing options but also the ceiling they want to be at in any competitive bid situation (especially for REO houses in Pburg . . . ).

More and more loans are getting rejected.   Appraisals are a problem even in Perrysburg.   The old “throw ‘em an offer and see if it sticks / hood of the car pricing approach” does not work out very well in these times.

So – how do I read the market?

It’s really the same as it ever was!

The best homes in the best condition sell for the best price at the best timing possible.

If your house is on the market and no one is looking – it’s probably a pricing problem and not a marketing problem.

My guess is that the buyers are already aware of your house – they have just rejected it before getting inside of it.

Has finally arrived.

Here is what it means to me, from a real estate perspective:

1. More houses on the market.  Happens every year.

2. Parades.  You bought a house in the Historic District?  Now you can walk to the parade with a stroller and not worry about parking.

3. Independence Day.  You bought a house by Ft. Meigs.  Now you can have a great party and not fight traffic.  Or you can hope your brother has a party and you can watch from his house.

4. The Farmer’s Market.  Fast becoming a great Perrysburg event every week.  You no longer need a lot big enough to garden.  You can buy someone’s organic produce and not mess with it your self! 

5. Tornado Time.  Remember last year?  Watch the news about Joplin?  You buy a house WITHOUT a basement you might want to have a plan . . . .

6. Heat and Humidity.  We always get some really hot stretches.  Got central air?  Screens for all windows?

7. Water.  Pouring into your basement as the walls collapse.   This does not happen in Spring/Summer.  But now is the time to reattach and check your downspouts.  Don’t do it?  Don’t care?  $25,000 to fix a bad basement in the Perrysburg Clay.

8. And a sad change – want to bike ride?  There are ZERO good trails in Perrysburg.  You have to drive to the Slippery Elm or Wabash Cannonball.  Bummer!

Enjoy the upcoming great weather!

And you know, if you have ever come back home to Perrysburg in the Winter from Florida, you just know what I am going to write about:

1. The blast of cold at the jetway at DTW – I mean the sobering, shocking blast of cold air INSIDE the Jetway.

2. The trek to your car in or out of the garage.  Blue Lot.  Off site.  Inside.  It doesn’t matter – your car is frozen cold. And takes time to warm up.

3. The drive back to Northwest Ohio.  Cloudy.  Frigid.  Freezing.

So, from the 79 degree sun of yesterday to the ice and blizzard of today.

And while it does make you wonder just exactly why you live here (because its’ home and because in July the tables are turned – trust me, I used to live in Florida).

S0 – I get back from Orlando . . . .

Today.

And I get to list/market a new property!

YEAH!

We Realtors love new listings.

This one is on the water.

This one has a dock!

This is a vacation home!

In Ohio!

And because it is a foreclosure I do not have any “summer” pictures.  I have one photo of the dock.

I just got back from Florida.

How sad is that?

On Mulberry.

I REALLY like this one.

There is something about quality, design flair, and the history of this home that just says “Perrysburg” to me.

A year or two ago . . . me – totally wrong.

Because I believed that the current real estate/mortgage/financial system crisis would wind down and end in a year or two.

But the old crisis has just morphed and grown.

To the new robo-signing/QE2/inflation/invisisble reo inventory crisis.

And it shows no signs of stopping or slowing down.  (Proof?  Here is my client action plan for today . . . 2 new short sale clients to list, 2 new REO’s to list, 1 “normal” Perrysburg house to list, and one huge 4 plex to order demolished in Toledo.  Normal is a long way away . . . )

So, I stopped guessing.

And began planning.

For a 4 to 5 year slow burn.

A continued slow burn in the real estate market.

My plan: reposition my team and my company.  Focus on new marketing tools and methods for 2010 and 2011.  Be the expert in pricing and marketing in Perrysburg.

It’s working so far – more sales, closings, listings, and closed volume than any year in my 22 year real estate career.

What about you?   If you are a Perrysburg real estate owner . . . and I am right about the length of the current crisis . . . you may need a plan.   A NEW plan.

In the recent election Ohio seemed to make some plans – hiring a notorious cost and budget cutter to be the new CEO of Ohio.

How about Perrysburg?  Maybe our city and school needs an updated plan (no more spending increases for a couple of years sound like a plan?).   IMO Perrysburg has to focus on the key differentiators that make it the preferred choice to people moving or relocating (and thus staying) here:  1. Quality of Life   2. Excellence of Education   3. Safety and Security

If we can do that we can weather whatever economic real estate storms are on the horizon.