For the past three years in Toledo, Ohio, inventory of homes has been on the decline. Unless there is a severe economic downturn locally, it is very unlikely that things will reverse in the near future.
Because of the dwindling inventory, realtors really have to work hard to scour the neighborhoods to locate homes for customers to purchase.
There are sellers. But, month by month the number of new listings has been going down.
There is a tremendous contrast in the position of buyers and sellers. It’s been getting more difficult for buyers to locate a home that really appeals to them. For sellers, these days are a dream come true.
Multiple offers are coming in for quite a few houses. In many instances there are things to sweeten the deal. This includes offers that are more than the price that is listed. It also includes all-cash bids. Sellers love all cash bids because they get paid sooner and there is increased certainty on the deal closing.
You’ve currently got a feeding frenzy, which is so exciting for the seller, but can be very stressful for the buyer. It’s not uncommon for a good home that enters the market to have 10 to 15 buyers being shown a property in a couple of days. The result of this is a rising cost of homes.
In moving on to commercial real estate in Toledo, there is a strong demand for multifamily buildings in Toledo, Ohio.
One 72 unit apartment complex named Hidden Village Square Apartments was sold for $2.2 million before it was listed. This is common nowadays as there is a red-hot market for apartment buildings.
Sellers of apartment buildings are selling their apartment buildings to investors who have the idea that they are better in management skills, and that a profit can be earned. These are not buildings that need to be rehabbed. They are mostly stabilized multifamily properties.
Last year, the sale of multifamily properties in Toledo resulted in one of the highest number sold that has been recorded. 38 multifamily complexes were sold.