Valley home sales sluggish in May
YOUNGSTOWN
Home sales in the Mahoning Valley were sluggish last month, failing to keep pace with the broader gains in the statewide market, according to data from the Youngstown- Columbiana Association of Realtors
Industry experts throughout the region, though, said May’s numbers are deceiving, as many brokerages remain particularly busy and continue to add new staff to meet demand from area homebuyers.
Statewide, home sales increased by 16.2 percent for the 23rd-consecutive month of gains, according to the Ohio Association of Realtors.
Sales in May reached 12,820 — a 16.2 percent increase from the 11,029 sales posted during the month in 2012 — and reached the best mark since 2007.
The average sales price of $148,143 is a 9.3 percent increase from the $135,560 average price posted in May 2012.
Thomas J. Williams, president of OAR, who also works at Northwood Realty in Boardman, attributed those gains to metropolitan population centers in Columbus, Dayton, Cleveland and Cincinnati.
“Those marketplaces are a little more robust than they are here,” Williams said. “Unfortunately, it’s always been that way, especially in Columbus. I think for the most part, though, that the Mahoning Valley is holding its own — our agents are extremely busy right now.”
Closed sales dropped in each county, except for Mahoning, where they spiked by 21 percent last month from a year before. In all, 236 homes were sold.
Median sale price, however, went from $78,250 in May 2012 to $70,000 last month.
Michael D. Klacik, broker at Klacik Real Estate in Poland, said Mahoning County consistently outperforms the rest of the Valley in home sales because of population centers such as Boardman, Poland, Canfield and Austintown where new- home construction is more prevalent.
“A lot of times, a normal transaction takes between 30 and 45 days to process,” he said. There are fees, inspections, appraisals, negotiating and other personal items that can stretch it to 60 days.
Pending sales were up in all three counties, according to YCAR’s data. Klacik expects sales to increase significantly in June, before they begin to taper at the end of the summer.
In Trumbull County, 161 homes were sold — a decrease of 4.2 percent from last year when 168 homes were sold. Median sale price went from $75,000 last year to $70,000 in May.
Columbiana County saw closed sales decrease by 7.7 percent last month when 60 homes were sold, compared with 65 a year earlier. According to YCAR data, the median sale price in the county jumped 58.3 percent to $95,000 last month, compared with just $60,000 a year earlier.
Pat Gallagher, of Pat Gallagher Realty in Columbiana, was skeptical of the increase, saying the number didn’t seem quite right, but she added that high-priced homes are selling faster than they used to in the county.
Historical data at YCAR shows the last time the median sale price hit such a high was in 2011.
Realtors agreed that slowly increasing interest rates, higher home values in some areas and stricter lending rules that took effect on loans insured by the Federal Housing Authority this year could be holding back some buyers in the region.
Lower inventories in certain price ranges, fewer foreclosures and short-sales also could be creating fewer opportunities for a segment of buyers, Williams said. These are all factors that aren’t necessarily a bad thing for the overall market here, he said.