The Dayton area’s housing market is poised to close 2013 with its best year for homes sold and prices since 2007, concluding two years of gains in sales and property appreciation, according to data from Dayton Area Board of Realtors.
A home is the single biggest investment most people make, so the value of their home is an important source of wealth.
More existing homes sold in Greene, Montgomery and Preble counties and northern Warren County in 2013 through November — 12,530 — than all of 2012. For all of 2012, 11,609 single family homes and condominiums sold. Sales from January to November 2013 grew 17 percent from the same period of 2012, according to the Board of Realtors.
The 11,609 homes sold in 2012 rose 11 percent from 2011. Sales declined in 2011 from the previous year.
Dayton’s housing market peaked in 2005, with more than 14,600 single family homes sold in one year, said Nancy Farkas, 2013 president of the Dayton Realtors board, and real estate agent for Coldwell Banker Heritage Realtors.
“The market has rebounded. We’re not at the peak we were at in 2005 but that may have been an inflated peak,” Farkas said.
Annual home price appreciation in the Dayton market rose 1.8 percent in 2013 through November to $125,251. The average sold price also increased 5.6 percent in all of 2012 from the year before, following three consecutive years of declines, according to the Realtors group.
The official numbers showing full 2013 figures won’t be released until later this month, but sales figures released so far would put the year’s total units sold as the best since 13,105 homes sold in 2007.
The average sold price of $125,251 through November is also the highest since local homes sold for $134,763 on average in 2007.
While the Dayton market as a whole shows improvement, some pockets of the city of Dayton are not rebounding as well as the suburbs, Farkas said.
“We still have room to grow, but I’m not sure how fast we’re going to grow next year because rates are starting to creep up. That will put a damper on things,” she said. “I don’t think it’s going to be as aggressively good” in 2014.
This year will present new challenges for the local housing market’s recovery.
One reason is new rules are being considered for how borrowers qualify for a mortgage and how loan rates are calculated that could go in effect later in January.
Another reason is interest rates are expected to continue its gradual rise from historically record lows. Rates averaged 4.69 percent for a fixed 30-year mortgage in the week ending Dec. 30, according to Bankrate.com, based on a weekly survey the company conducts with the nation’s five largest banks and five largest thrifts. A year ago, rates averaged 3.59 percent.
Interest rates either cause people pause, or encourage people to get off the fence and act now on buying a home, real estate agents said.
“Affordability is definitely the best today as what it’s going to be for the immediate future,” said Michael Mahon, executive vice president of statewide brokerage HER Realtors.
HER Realtors of Columbus merged earlier this year with the former Southwest Ohio brokerage of Real Living Realty Services. The combined statewide real estate agency sells properties in Cincinnati, Columbus, Dayton and Toledo and is expanding to Cleveland, Mahon said.
Due to low inventories of available homes for sale, and increasing investment by out-of-state institutions in residential properties in Ohio, Mahon said his firm expects sales prices to rise at a normal pace of 2 to 3 percent in 2014. However, due to new rules for obtaining a mortgage and a still troublesome job market hurting demand, he expects units sold to be flat this year compared to 2013.
“In order for us to get back up to that next level of housing we need to work on getting more jobs created in the state of Ohio,” Mahon said.
More online: We break down monthly home sales and prices in the Dayton area since 2010 at MyDaytonDailyNews.com/business.