Akron Life November 2022

Inside the Sale In 2019, the Ohio REALTORS ® commissioned the University of Cincinnati to study the potential impact that Point of Sale Inspection policies have on the local real estate market. This study compared cities with a POS inspection policy to similar cities without a point-of-sale policy. The results are in. While perhaps well-intentioned, point-of-sale inspections may have a negative impact on a community.

Municipalities with POS inspections have higher vacancy rates than municipalities without inspections.

Municipalities with POS inspections had fewer transactions per 1,000 households in 2017, compared

The age of the property and sale year impacted the selling price. > Regression results

> Municipalities with POS inspections were found to have an average vacancy rate of 12.1% compared to 9.7% for municipalities without inspections in 2017.

found that as the age of the house increases by 10 years, the sales price declines by 0.1 percent. > Properties sold during recessions had a negative relationship to sales price. If the sale took place during a recession, the price was approximately 4.3% lower than a nonrecession year.

to municipalities without inspection requirements. > Regression analysis on the rate of transactions per 1,000

households in 2017 revealed that areas with POS inspections had 19 fewer transactions per 1,000 households than in areas without POS inspections. Transactions occurring with sales prices below the 2017 median price had a negative relationship with transaction rate and resulted in 11 fewer transactions.

Municipalities with POS inspections have slower

rates of housing transactions per 1,000 households, on average, over the years 2010-2017. > The overall average for POS municipalities was a rate of approximately 34 transactions or sales per 1,000 households. Conversely, non-POS municipalities had a rate of approximately 47 sales per 1,000 households. POS inspections are correlated to decreased sales prices. > For the years 2000 to 2018, POS inspections are correlated with decreased sales prices. Point-of-sale Ordinances are associated with an 18% decrease in transaction price. > The impact of POS ordinances on sales price was found to be more than four times the impact of a recession.

Municipalities with POS inspections have lower percentages of individuals with

Municipalities with POS inspections have lower median and average sales prices.

a bachelor’s degree or higher, as well as higher unemployment rates, than those without POS inspections. > Approximately 34% of the population age 25 years and older in municipalities with POS inspections have obtained a bachelor’s degree or higher, compared to 35.3% of municipalities without inspections in 2017.

> The average sale price for transactions occurring under a POS inspection was $162,559, while the average sale price for all transactions without inspections was $186,456. > The median sale price for areas with POS inspections was lower than the median price for homes in areas without inspection ordinances — at $135,000 for POS and $149,706 for non-POS.

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