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Ohio
Many Ohioans are struggling to pay their mortgages as the surge of foreclosures sweeps through the state. Ohio experienced a mild boom in the real estate hey-day, but things have drastically changed.
The foreclosure rate is one of the highest in the nation. A state program is aiding some subprime mortgage holders. They’re wondering how much it will help in Ohio.
Columbus had been considered like most of Ohio housing a stable kind of market. That was before fancy new adjustable rate mortgages hit the market and an increase in subprime borrowing occurred. Comparatively affordable mid-west homes were the city’s calling card with low unemployment and a history of slow but steady home price appreciation.
Historically Columbus and most of Ohio avoided major housing price drops, rising at about the rate of inflation. Columbus now finds itself in the unprepared place of being one of the state’s falling real estate markets, and is forecast to deflate 7.8% in 2008 by Housing Predictor on a slow down of home sales.
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| City |
Forecast |
| Columbus |
− 7.8% |
| Cincinnati |
− 6.5% |
| Cleveland |
− 8.7% |
| Dayton |
− 5.9% |
| Toledo |
− 6.3% |
Cincinnati has always been a place that never had home prices escalate much, and they didn’t have drastic falls either. But the Cincinnati real estate market is in for a major setback. Cincinnati home sales have slowed amid increasing foreclosures and now the city is beginning to suffer.
The inventory of homes and condos is hitting new highs and mortgages are getting harder and harder to get as the national real estate crisis hits "Cincy" in a big way. Foreclosures are at record highs. Cincinnati has a big heart, but will suffer from a sort of real estate attack in 2008, wallowing and then deflating 6.5%.
In Cleveland the value of homes is dropping, influenced by the craze of a market that had a run-up for just a short time. The impact of new creative lending, including subprime and new products directed by the Special Investment Vehicle’s (SIV’s) from Wall Street have slammed this otherwise conservative marketplace.
The city that has given us the Rock and Roll Hall of Fame is troubled. The foreclosure crisis is playing out a melancholy tune, taking Cleveland home values lower, which will plague it throughout at least 2008, cutting home values a forecast 8.7%.
In Toledo foreclosures are also on the rise, and the market doesn’t seem to be able to adjust much. Sales have slowed and there are few buyers in the market place. It seems the market is amiss. Toledo real estate is forecast by Housing Predictor to deflate 6.3% by year’s end.
To some degree lower home prices have protected the Dayton housing market from a complete halt in sales. Foreclosures are having a major impact on the market and home owners are concerned about their local economy’s future.
Dayton is forecast to see slower home sales through the year and adjust downward 5.9% on the average homes value in 2008.
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