State Real Estate Market Outlook
Realty Market Outlook Ohio State Profile - Spring 2006
Ohio’s weak economy weighed on household conditions
Several indicators suggest that household finances were weaker in the state than the nation. Personal bankruptcy filings, mortgage foreclosures and mortgage delinquency rates continued to increase during fourth quarter 2005. The state’s per capita personal bankruptcy rate increased significantly relative to the nation during 2005.
The state’s mortgage foreclosure rate was approximately 3.4 percent in the fourth quarter 2005, about double the national average. Foreclosure rates in Ohio consistently have exceeded the national average. Additionally, delinquency rates on conventional prime and subprime mortgages in Ohio are rising.
Home values in the state continued to appreciate more slowly than the national average. Ohio’s year-over-year home price appreciation of 4.0 percent in fourth quarter 2005 ranked second to last in the nation.
Commercial real estate (CRE) conditions were uneven across the state.
Downtown vacancy rates for the Cleveland and Columbus metro areas increased in 2005 and remained high. Suburban vacancy rates for Cincinnati also remained high but declined 100 basis points during the past year.
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