Toledo Housing Market


Found this disturbing article in the USA Today:

Bottom 10 housing markets:

City - Avg. Value - Q3 2006 Change
Detroit $154,100 -10.5%
Sarasota-Bradenton, Fla. $320,700 -9.4%
Canton-Massillon, Ohio $112,300 -9.2%
Palm Bay-Melbourne, Fla. $193,600 -9.0%
Bloomington-Normal, Ill. $156,300 -8.5%
Akron, Ohio $118,200 -8.4%
Cape Coral-Fort Myers, Fla. $255,400 -8.0%
Toledo, Ohio $115,400 -6.6%
Lansing-E.Lansing, Mich. $139,800 -6.2%
Miami-Fort Lauderdale $365,100 -5.6%

Read the rest of this article:

Metro Comparison Chart:

Toledo Owners at Risk:

"Almost 3 million homeowners with shaky credit have adjustable-rate mortgages. Refinancing those loans will be hardest in areas where home prices are falling. Here is a look at the top 24 metro areas with the largest home-price declines at the end of 2006 and the percentages of homeowners with subprime loans who face higher payments by the end of 2008."

Metro area Home - Price Decline - Reset risk

Akron, Ohio -7% 60%
Barnstable/Yarmouth, Mass. -8% 58%
Bloomington/Normal, Ill. -6% 58%
Bridgeport, Conn. -5% 58%
Cape Coral/Fort Myers, Fla. -12% 63%
Columbus, Ohio -6% 50%
Daytona Beach, Fla. -5% 56%
Gary, Ind. -4% 63%
Grand Rapids/Muskegon/Holland, Mich. -4% 56%
Indianapolis -4% 51%
Kennewick/Richland/ Pasco, Wash. -4% 63%
Miami/Fort Lauderdale -6% 60%
New Orleans -9% 49%
Edison, N.J.* -4% 60%
Palm Bay/Melbourne/ Titusville, Fla. -17% 61%
Pensacola -4% 64%
Reno -9% 59%
Sacramento -4% 51%
San Diego -5% 59%
Sarasota/Bradenton, Fla. -18% 63%
Springfield, Ill. -10% 62%
Toledo, Ohio -7% 67%
Worcester, Mass. -5% 59%
Youngstown/Warren, Ohio -8% 66%
* = includes Newark, N.J., Nassau/Suffolk, N.Y., and 23 counties in New York, New Jersey and Pennsylvania. Sources First American Loan Performance, National Association of Realtors

Stats show Toledo is not the worst in Ohio, but we don't live in other cities.

No votes yet

So why did County Treasurer Cabbagehead appraise everybody's property higher? They must need the money.

Why is this "disturbing" news for Toledo? The median home price is just about 2.5 times the median income. That's right on track. If home prices fall, it only demonstrates an attempt to continue tracking the fall of incomes in the area, OR it indicates homes become even better buys (since the 2.5 multiple should be a MAXIMUM).

I mean, what, did you want home prices to RISE? Toledoans are getting poorer. As people become poorer, under rational financial standards (i.e. not like the ones we still experience in the midst of the national housing bubble) they become unable to shoulder the debt of a home.

Rising home prices will only make them extra poor on top of that. Assets like homes aren't just for the benefit of the selling class; they must also be a benefit to the buying class.

Although we have bankers pushing toxic loan terms for mortgages, the REAL push for increasing home affordability is DECREASING PRICE.

You can also look at these stats this way: The previous year's real estate values were too high and the market is simply correcting to where it should have been all along.

It will be very interesting to see in the county property assessors decrease the amount property is worth. They were very excited to recently update upwards home values, so let's see if they are just as excited to update the home values downward. If not, they should be called out on it.

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