Slowdown in Ohio Foreclosures Improving Home Prices

by Peter Vernon on States

The slowdown in Ohio foreclosures has been improving prices in Ohio. In May, the average sales price for pre-owned homes or new homes in the state rose by 4 percent over the year to $137,310, based on sales data from the Ohio Association of Realtors.

House prices also increased in Northeast Ohio, where the average sales price for single-family homes jumped up by 20 percent to $128,622 and condo prices increased by 9 percent to $123,568.

Total home sales also increased as the spring brought forth new hopes and new confidence. Based on sales data from the real estate exchange system of Northeast Ohio, total sales of previously owned single-family homes and new homes climbed up by 4 percent while sales of condos increased by 6 percent in the region.

Meanwhile, Judge Raymond Pianka of Cleveland imposed almost $13 million in fines on South Carolina-based firm Interstate Investment Group and its sister company Paramount Land Holdings for their failure to comply with city laws regarding fixer upper homes. The two companies bought nearly 200 cheap residential units in Cuyahoga County as foreclosed home auctions surged in the county from 2007 to 2009.

It was during these years that the pace of Ohio foreclosures spiked. In 2008, Ohio was among the ten states with the highest rates of foreclosure. In 2009, it was 12th on the foreclosure charts. It was only in the past several months that Ohio slowed down in foreclosure activity.

In May, foreclosure filings dropped to 10,379, a decrease of 13 percent from 11,936 in April. The drop was even bigger than the drop in April, which was 7.11 percent.

In April, foreclosure activity also slowed year over year by more than three percent. As total default, foreclosure sale and repossession notices fell over the month, the total of units that became foreclosure homes for sale also fell by three percent from 3,864 in March to 3,749 units in April.

As the pace of Ohio foreclosures continues to slow down, house prices are expected to continue to improve.

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