ELYRIA – Is the end of the housing market crash in sight for Lorain County?

Possibly, according to Jeff Russell, president of the Lorain County Association of Realtors. The reduction in the number of bank-owned properties for sale may be an indication that the local housing market is stabilizing.

Russell said he is cautiously optimistic that by the end of the year, housing prices will slowly start to recover.

“I feel like things are getting better, not worse, and that’s something I haven’t been able to say in a while,” said Russell, who is also the manager of Russell Real Estate Services in North Ridgeville.

That’s music to Lisa Harcula’s ears. She and her husband, Brian, have been trying to sell their Ashland Avenue home for more than two years and have been through four Realtors.

“It’s a little frustrating after making this investment,” Harcula said. “We planned to stay for five years and then build, but the market took a crash right when we were ready to build. We’ve lost the equity we hoped to have in the house. We’re listing it at a very low price and still not getting any offers.”

Harcula said she’s recently seen a lot more activity on her listing, with more showings and people attending her open houses.

“The ($8,000) first-time home buyer tax credit is really helping, I think,” Harcula said. “People are at least back out looking, and I’m seeing more sold signs, so I think that’s promising. We’re definitely getting more action now.”

Elyria’s home sellers have seen something few sellers have during the past year – rising prices.

“It is one of the very few areas where we’ve seen an increase in sale prices,” Russell said.

Part of that may be an “I’m not gonna take it anymore” attitude by sellers, Amherst Russell agent Shell Yance said.

“Some sellers are really sitting tight to get what they should get for their house,” Yance said. “I think it’s time sellers got tough and insisted they get what they know their house is worth.”

She said she has also seen a steadying of the market in Elyria.

“The first-time home buyer price range is really moving, but sometimes they are competing with investors,” Yance said. “They might write four or five offers and lose four or five offers to investors who can pay cash and close in a week.”

Yance said she has noticed the number of sheriff’s sales declining, another indicator that the industry’s downturn may be nearing an end. In the meantime, there are still a number of bank-owned properties available in the $100,000-or-less price range, she said.

“I think the next year and half will be really interesting,” Yance said. “I think it’s holding pretty steady. I think Elyria is holding its own. I think some areas are climbing up already, and I think it’s just a matter of time before everyone is improving because there are just so many great programs out there right now.”

There are indications in Lorain, too, that the downward spiral for real estate may be ending.

“Prices have stabilized in Lorain very nicely,” Russell said. “A lot of first-time home buyers are looking at Lorain as a very affordable and desirable place to live.”

A decline of about 40 percent in the number of bank-owned foreclosures for sale in Lorain County and the tax credit for first-time home buyers have both helped the market, Russell said.

“We had some predatory lending around here, but that was not as detrimental as the loss of jobs, foreclosures and people just leaving the area,” he said. “I don’t think my generation or the one before it have ever seen anything like what we’ve been through. The market very severely overcorrected in terms of price in this area. If you’re looking to buy and you’re waiting for the bottom, I think we’re very close to it. The banks are getting out of the business, and that is very rapidly stabilizing prices.”

Russell said he expects that in six or seven months, the market will begin to see a very slow recovery that may take a few years.

While sellers may take a hit on their home, Cheryl Repko of RE/MAX Homeward Bound in Sheffield pointed out that if sellers are going to turn around and buy another house, they market will work in their favor, allowing them to get a good deal on that purchase, which may offset any loss on their previous home.

“Overpricing a house is counterproductive,” she said. “It’s just going to sit there. The market is constantly changing. Values can change, and you need to adjust with that. Homes that you see sitting – probably the No. 1 is pricing.

“Either it was too high to begin with, or the seller and agent didn’t adjust to the market changing.”

It’s still a buyer’s market, though, Repko said.

“I would say it’s a good market for a buyer, that’s for sure,” she said. “The interest rates are incredibly low. The first 10 or 11 years I was in real estate, the interest rates were 10 and 11 percent. I never thought we’d see single digits again. We have some of the lowest interest rates we’ve ever seen. There are lots of houses on the market, which, for a buyer, gives you quite a choice. You can get a lot of house for your money in Lorain.”

Russell said that media coverage of the housing market implosion has led buyers to believe a home was theirs for the taking.

“Buyers want to see homes below market value, or they won’t even look at it,” he said. “They’ve been led to believe they need to steal it, or they’re not buying.”

He said that attitude is also slowly starting to change, but selling a home in the current market may still require more bells and whistles than were needed five years ago.

“It’s more important than ever to make sure it’s attractive to buyers,” Russell said. “It must be clean inside and out, uncluttered and updated. There are just so many choices that buyers still feel, to some extent, that they can get whatever they want for whatever price they want.”

Professional staging, reducing clutter and a fresh coat of paint are now standard preparations before putting a home on the market.

“They have jobs and they don’t have a house to sell, which makes it easier,” Russell said of buyers.

“There’s also going to be a push here since the deadline for that tax credit expires Dec. 1 – unless they extend it. That means people will need to be under contract by Nov. 1 or by Oct. 15, even, to give themselves plenty of time. The purchase must close by Dec. 1.”

In spite of some tough years, Russell feels confident that the real estate market in Lorain County is stabilizing.

“I think you’ll see a very slow recovery within this area for the next year, year and a half,” Russell said. “I think we’ll soon start to see a slow increase in value year after year.”

Repko agrees that homes are selling in Lorain.

“I’m optimistic about Lorain,” she said. “I like Lorain. I like the city, and I think it has a future.”

Contact Alicia Castelli at 329-7144 or acastelli@chroniclet.com.

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