Summer Sales Indicate Kent’s Housing Market Improving Despite Foreclosures (Part I)

According to Bob Bossar, and Steve Boyles, former being the real estate agent for W.W. Reed and Son, and the later being the manager of Century 21, the property market is in a better condition, in Kent compared to other places. In the previous few months, the sales figures have improved greatly. Bossar observed that in the Kent county property market the months of July and August were, major turning points, as fresh faculty members and staff joined in.

Bossar feels that, things are becoming more reasonable presently from buyers and sellers’ side as well. Buyers are more specific about the properties nowadays as they can bargain more. Bossar also emphasized that one of the couples he dealt with visited almost 40 homes before settling for one home. He further stressed that given the present conditions the sellers are also aware of the fact that they might not earn as much as they expect.

Boyles selling homes within a range of 20-mile radius observed the same thing. Boyles came across more updated buyers and sellers within the last few months. This increased the average price of selling and the rates of interest were lowered at the same time. In fact, in terms of improvements, Kent is not the only location and according to the last month’s report of, the Commerce Department, the home sales in July were at least 10% higher compared to the month of June.

However, the property market is still in a negative condition. Despite a rising trend of sales during July, the figures featured 13.4% fall compared to the last year’s figure. As per the Mortgage Bankers Association, almost 10% of homeowners in Ohio had fallen behind with their mortgages as of June 30. Approximately, 4.5% mortgages had reached the stage of foreclosing. In terms of delinquencies Ohio became the 8th worst hit state and regarding foreclosures it became the 7th worst affected state.

Though the sales figures at ‘Century 21’ consequently was stable, on an average there is one sale taking place each day and according to Boyles, foreclosed properties account for half the total sales. According to him, the transaction circumstances were better last year.

The associate dean of graduate and professional programs with Weatherhead School of Management at the Case Western Reserve University, Robin Dubin observed that, “It got bad in Ohio before it got bad in the rest of the country.” Dubin feels that this crisis situation has arisen due to fraudulent activities in the market and the weakness in the local economy.

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