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Cincinnati Real Estate Consultant Comments on Recent Listing in U.S. News report “Top 10 Cities for Real Estate Steals”

A recent article in US News and World Report ranking cities where there is potential for “real estate steals” prompted a discussion of the Cincinnati housing market and its prospects with Real Estate Development Consultant Andrew Howe of Cranewoods Development.

Cincinnati, OH (PRWEB) February 25, 2010 — Andrew Howe of Cranewoods Development gives local confirmation that Cincinnati is one of the “10 cities for real estate steals” as recently reported in U.S. News and World Report. Citing stable values during the recent boom and bust and a firm price to income level, Howe says, “Cincinnati real estate has always seemed to escape the dramatic boom bust cycles that devastate other parts of the country.” While the article predicts further price drops, it anticipates a bottoming in 2010 setting the stage for future appreciation.

Howe, a Cincinnati real estate development consultant and a successful developer and general contractor for markets in Ohio and Florida for over thirty years, transformed his firm into a development consultancy using his expertise in development, construction and finance to assist lenders and development groups in resolving problem projects and loans. Cranewoods primarily serves the Greater Cincinnati area and Florida’s Eastern shore.

Unlike Florida, Howe stated, “Cincinnati’s real estate stability moderates development profits in great years, but also limits the pain on the downside.” While Cincinnati has dodged the brunt of the crash, both lenders and developers have still been faced with stalled projects and loan defaults. The stabilization of the housing market has followed the same pattern as many other parts of the country, with the under 300k housing prices leading the market in sales. Although sales prices are at discounts to where they were in 2007-2008, the fact that there was an increase sales transactions during the second half of 2009 and 2010 is a positive sign for absorbing inventory, the first step in a market bottom and eventual recovery.

Howe points to downtown’s loft projects as a prime example. “Cincinnati’s loft condominiums in the under $300k range that are well designed and well located are starting to sell again,” Howe said, pointing to Hamilton County tax records showing a surge in downtown loft sales beginning in the 3rd quarter of 2009. “The real estate cycle will turn around as they all do. It’s a matter of survival while the market takes the necessary steps to recover.” Read more →

Cincinnati Makes List Of Top 10 Cities For Real Estate Steals

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Cincinnati Ohio Real Estate has been recognized by U.S. News & World Report as one of the top ten markets for healthy real estate development investment and even potential “steals” (USNews).

In an article from February 12, 2010 entitled “10 Cities for Real Estate Steals”, U.S. News surveyed information primarily compiled by Moody’s Economy.com to search out markets where price-to-income ratios are most in line with their historical averages despite the challenging economic environment.

Cincinnati Real Estate Developers And Buyers
Certainly the news does not come as a surprise to the Greater Cincinnati real estate development community who have witnessed the near 30% downturn nation-wide and yet experienced very little of the trend locally. In fact, buyers and investors see, despite some near term fluctuation, that many properties in the market are actually undervalued compared to the long term trends.

Cincinnati Recently Sold Homes

“10 Cities for Real Estate Steals”
Concerning the Greater Cincinnati real estate development market, the U.S. News reporter, Luke Mullins, states:

“Home prices in Cincinnati have remained relatively affordable throughout the nation’s recent boom-and-bust cycle. The area’s price-to-income ratio actually increased from 2006 to the third quarter of 2009. Its most recent reading of 1.41 is slightly below the 1.46 average ratio of the 15 years before 2003. Although home price declines have moderated in recent months, Moody’s Economy.com believes further drops may be in store as additional houses go into foreclosure. Home prices in Cincinnati are expected to bottom out this year before creeping higher.”

Here is the recent view of one local Cincinnati real estate developer, “It’s challenging to get deals done out there, but there are spots around town that are very well positioned.” via

The Real Estate Development trend in Greater Cincinnati Ohio
Mortgage rates have recently dropped to 4.93 and added federal incentives continue for first time and current homeowners looking to buy so expect the current short term fluctuation in the greater Cincinnati real estate market to begin to get back to its historical trend by the end of 2010.

Receivers and Receivership

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Here’s a good resource if your real estate development or investment runs into some trouble and you or your lender think you may need a court appointed receiver.

A court appoints a receiver only after both sides of the litigation are given an apportunity to give input upon the specific receiver and the goals of the receivership. In real estate, those goals could be as diverse as selling the property to completing construction to financial analysis and auditing.

The Court and Receiver
The litigants counsel define the skill set needed in a receiver for their particular property and identify an agreed upon receiver. But once the court accepts their choice, the receiver is an extension of the neutral court.

“Parties with an interest in the receivership should treat the receiver as an arm of the court and should not seek ex-parte communications with or special treatment by the receiver.”

What to look for in a receiver

“A receiver should be chosen on the basis of background, expertise, neutrality, availability, compensation rate and temperament, and not because of perceived alliances and relationships.”

What you need to know
If you think your situation may require a receiver, go read the clear yet short article and learn more about the process and what you may need to look for. Your familiarity will aid you and your counsel in choosing the right path and goals of the receivership in your specific situation. PDF on Court Appointed Receiver here.

Tax Credits working for Homeowners, First Time Buyers and the Economy

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A recent study and market analysis show the extension of the first-time home buyer tax credit and the addition of credit for existing homeowners is working for our economy. But the credits are set to expire in April and interest rates are beginning to rise from their near historic lows so the time to buy is now.

“Twenty percent of homeowners are more likely to consider purchasing a home than they were six months ago, thanks to the revised $6,500 federal tax credit, according to the survey.”

Coldwell Banker conducted the survey of over a thousand homeowners and found that the vast majority planned to use the money on “smart spending” that pays off existing debts, goes to home improvements, savings and household expenses. All of which aid our economy by increasing consumer confidence. That’s good news for existing homeowners.

“This may mean the move-up buyer is back in the marketplace,” said Jim Gillespie, chief executive officer of Coldwell Banker. “We’ve got a strong market for the first-time buyer and a strong market for investors. The move-up buyer has been sitting on the fence but hopefully the $6,500 tax credit will stir him to contact a realtor.”

The Tax Loss Carry Back and what it means to Real Estate Investors and Buyers

in Cincinnati Real Estate Development, Florida Real Estate Development, Jacksonville Real Estate, Real Estate Debt Workout, Real Estate Market News, Real Estate Taxes

The Tax Loss Carry Back attached to the Unemployment Benefits Bill recently passed by congress and signed by the president has gotten little press but it may have great impact. First off, it will have the intended influence on stabilizing the Commercial Real Estate (CRE) market by helping potentially tens of thousands of mid level businesses – hit hard with the large drop in consumer spending over the last two years – by giving them much needed funds to stay in business and in their current leased or owned locations. Secondly, it will effect developers and builders, who fall into the previous categories, by giving them the funds necessary to survive and begin building again.

“According to National Association of Home Builders President Jerry Howard, “This injection of capital will enable a lot of our members, a significant number of small and medium sized builders that have been hanging on by their fingernails, to keep their doors open, and hopefully with this increased stimulus and demand from the tax credit, to be able to get back on their feet and get the country moving forward again.”” Source.

What does that mean for Real Estate buyers and investors? Morning Star gives a hint:

“Many builders are flush with cash and have already cleaned out their inventory of “C” and “D” locations. Most builders aren’t going to let loose of their precious “A” and “B” locations at a time when several in the industry have moved back into land acquisition mode and quality land is actually scarce in several markets. With survival not in question for the vast majority of public builders, many will opt to keep their land rather than sell it at fire-sale prices for tax purposes.”

The extremely low prices currently being seen in Real Estate won’t last long when new units are being designed to deal with with the growing pent up demand and the new demand created by the extension of the first-time home buyers credit and the added home-owners credit also recently passed by congress and signed by President Obama.