Updated: 12:47 a.m. Tuesday, April 23, 2013 | Posted: 12:05 a.m. Wednesday, April 17, 2013
The Dayton Daily News reviewed rental restriction lawsuits filed in Warren and Montgomery counties and checked for cases in outlying counties. Experts from the area and around the country were interviewed about the issue, its history, and the pros and cons. We also visited the community, interviewed HOA lawyers and resident board members, and contacted property owners affected by the lawsuits living in the area and in California and North Dakota.
State of Dayton’s real estate market
No Dayton area community has fully recovered home values since the national economic crisis began at the end of 2007.
The area’s housing market peaked in 2005 with a record number of homes sold in a year (14,618) and a record average sale price ($136,433), according to sales recorded with Dayton Area Board of Realtors. In 2012, sales of single family homes and condominiums increased from the year before to 11,609 units sold at an average price of $122,425.
By those figures, sales prices across the area of Greene, Montgomery and Preble counties and the northern part of Warren County are still more than 10 percent below the 2005 market peak on average.
Sales price is an indicator of homeowner equity. For most people their house is their single biggest asset, so homeowner equity is their greatest store of wealth.
As of the end of 2012, estimates are that 36 percent of Montgomery County homeowners are underwater; 23 percent of Greene County homeowners are underwater; 23 percent in Preble County and 24 percent in Warren County, according to figures from Zillow Inc., an online company that tracks national real estate data.
A homeowner who’s “underwater” means their mortgage balance exceeds the worth of the property.
Underwater homeowners have difficulty selling their homes for a high enough price to pay the loan off without coming up with cash out-of-pocket.
Home values were driven down by a rash of foreclosures following the recession, but Dayton area foreclosures rates are dropping. In 2012, foreclosure cases filed in county courts totaled 5,935 cases in Greene, Montgomery, Preble and Warren counties. The four counties filed 7,645 foreclosures in 2008, according to case statistics provided by county clerks.
— Staff Writer Chelsey Levingston