Today a buyer called us who wishes to purchase a townhome for under $100K in a nice suburb of the Cleveland OH.  The buyer broker there, Gale, shared her perspectives with us.

First, she told us the inventory of townhomes in that particular neighborhood were actually in short supply even though in general the communities around Parma Heights have many many foreclosures. This is because many people are looking for low maintenance properties and in affordable housing.

Gale said “Why would someone want to buy & fix up a property when they can rent with utilities included for $400-500/mo?”

Due to the layoffs from Ford and Chrystler, and a a recent buyout of a local bank by a bank out of Pittsburgh, the employment scene in this area is bleak.  Banks are reluctant to make a loan to primary residence buyers –even if they have good credit–for a fixer-upper sort of a property because they have seen too many people abandon a partially rehabed home.  If a single family home does come on the market that is in good condition and is priced right (say around $60,000), it will be sold quickly.  However, if it needs a lot of repairs–as many do in the area– the banks are not making loans.