Mentor Ohio Real Estate Market Activity
Mentor, Ohio is an eastern suburb of Cleveland in the Midwest that is enjoying good employment numbers relative to the rest of the country. The unemployment rate for Mentor fell to 5.3% in October, 2011.
The graph at the left shows the number of single family homes “For Sale” (light green) relative to the number of “Homes Sold” (dark green) since Jan. 2010. Inventory of single family homes dropped 26.3% for the fourth quarter of 2011 relative to the same period in 2010 while the number of “Sold” homes has increased by 10.7%. “Pendings” (homes under contract but not yet transferred) have increased by 22.7% which is a very good indicator for 2012. Condominium inventory has decreased by 8.6% with “Solds” and “Pendings” up 100% and 20% respectively.
The second graph shows the average “Asking Price” (green) relative to the average “Sale Price” (red) for single family homes. It appears that we’ve bottomed out and even if we are not showing an increase in pricing at least we appear to have stabilized somewhat. Condominium sales are showing the same trend lines but at a much lower sales activity.
This last graph indicates the “Months of Inventory” which essentially shows the number of months it would take to sell all of the currently listed homes if we didn’t list another home. There’s some good news here! The “Months of Inventory” for single family homes is down in Mentor 31% in the fourth quarter of 2011 versus the same quarter in 2010. Condominium inventory, however, is of by 54.3% over the same quarter in 2010 which is indicative of sellers holding on for a while unless they really must sell for some reason.
Short sales and foreclosures continue to have a negative effect on the overall market which is a condition that will continue for the next three to four years until we work through that distressed inventory. Interest rates below 4% for a fixed rate, 30 year loan certainly add to the affordability of home ownership although buyers face slightly stricter guidelines in obtaining a mortgage.