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Ohio, seeing faster pace of home-price growth better Equity



This article comes from https://www.crainscleveland.com/ that shows that Ohio is one of the faster paced real estate markets. Let's dive in to the important parts of this article.

"Home prices increased nationally by 3.6% from May 2018, according to data from CoreLogic. By state, annual home-price growth varied from a 1.7% decline in North Dakota to a 10.7% increase in Idaho. Ohio, meanwhile, was at a strong 4.9% growth rate."

Cities around Cleveland are changing from have crazy building codes that are not found anywhere else in the US. There are still some cities that are trying to hold on the past, but they will not last forever. The supreme court in Ohio has outlawed the building codes and the end is near. That is why I think the prices will continue to rise in the mid priced homes. Where else can you purchase a nice place to live in the $100,000 range? 

""Interest rates on fixed-rate mortgages fell by nearly one percentage point between November 2018 and this May," said Dr. Frank Nothaft, chief economist at CoreLogic. "This has been a shot-in-the-arm for home sales. Sales gained momentum in May and annual home-price growth accelerated for the first time since March 2018.""

Interest rates effect everything in business and in real estate. Rates have been low for a long time, the key difference now is the economy. People are buying again and have faith that they will be able to carry some debt. Mortgage laws have changed and in most cases only people that afford a home gets a loan. That means that the foreclosures should be minimal. 

The other factor is private lending and cash buyers, there are a lot of them. I purchase almost 100 homes a year for clients that have no debt on the home and pay cash! That was not the case in the past. Also private lenders are financing a lot of homes through their IRA's, giving the mortgage lending business less notes. 

"The states with the largest year-over-year gains in home prices in May are not on the coasts. Among the top 15 states, only Maine and New Hampshire have coastlines. Midwestern states such as Wisconsin, Michigan and Ohio — viewed as possible keys in the 2020 election — remain above the national average of 3.6%."

That is great news for home owners and home buyers. Home buyers can see that they will have equity in their homes in the very near future and sellers can enjoy their profits when they sell their residence. Either way it is a very good thing for investors and home owners. 

I am always looking for the best deals on the market and usually get them. I'm Brett Icon agent at EXP Realty 216-703-5740.



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