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2020 Market Report: Central Ohio Broke All Records!

January 25, 2021 by The Columbus Team

Below is a review of the 2020 housing market which was challenged by constant inventory shortages. The 2021 outlook remains the same as buyer interest is steady amongst a significant inventory shortage.

If you are considering a sale, multiple offers are expected to continue to be the norm. If you are buying, it is more important than ever to use a REALTOR with experience who can guide you effectively and successfully through your purchase.

Call The Columbus Team, we have the experience you need during this market. (614) 888-6100.

2020 BROKE ALL RECORDS!

Record highs: Sales, Prices
Record lows: Inventory, Days on Market, Months Supply

The 2020 housing market was unexpectedly turbulent towards the end of the first quarter due to the pandemic that spread across the country. As the first wave of COVID-19 hit in the spring, housing market activity slowed substantially before staging a dramatic comeback just a couple of months later.

Buyer activity was the leader again in 2020. With mortgage interest rates setting record lows multiple times throughout the year and a strong drive by many buyers to secure a better housing situation – in part due to the new realities brought on by COVID-19 – many segments of the market experienced a multiple-offer frenzy not seen in the last 15 years or more.

While markedly improved from their COVID-19 spring lows, seller activity continued to lag buyer demand, which had strengthened the ongoing seller’s market for most housing segments as inventories remain at record lows.

The housing market in 2020 proved to be incredibly resilient, ending the year on a high note. Home sales and prices were higher than in 2019 across most market segments and across most of the country. Seller activity recovered significantly from the COVID-19 spring decline, but overall activity was still insufficient to build up the supply of homes for sale.

Sales: Home sales increased 4.1 percent in 2020 to 33,431, usurping the previous record of 32,218 in 2017 by 3.8 percent.

Single-family home sales increased 4.2 percent last year while condominium sales were up 3.4 percent.

Condos held on to its market share of just under 15 percent of sales and single-family homes made up the lion’s share of 2020 sales at just over 85 percent, also unchanged from 2019.

Prices: Strong demand and lack of supply worked to push home prices up in 2020. The overall median sales price increased 10.5 percent to $232,000 for the year. Single-family home prices were up 10.5 percent compared to last year, and condo home prices were up 8.3 percent.

In the central Ohio area, Columbus REALTORS® has established the affordable housing benchmark as $180,000 based on median income, typical family size, interest rates and qualifying ratios. This would, of course, include most first-time home buyers.

Homes under $180,000 made up 33 percent of the market share in 2020, a decrease of 17.5 percent, while homes over $180,000 gained 11.7 percent market share.

“Although we had very strong demand for entry-level homes, sales were down as we simply didn’t have sufficient inventory in the under $180,000 price point,” said Michael Jones, 2021 Columbus REALTORS® President. “Fewer home sales in this sector and more home sales in the higher price ranges also served to push the overall market sales price. In many cases, the $180,000 home has now become the over $200,000 home.”

List Price Received: Sellers received, on average, 99.8 percent of their list price at sale, up 1.1 percent from 2019. Due to the declining inventory in the last half of the year, the average sale price exceeded the list price in five of the last six months.

Inventory: New listings decreased by 4.3 percent to finish the year at 36,023. Other than seven months in late 2018 and early 2019, central Ohio has experienced year over year declines in inventory for nearly ten years.

There were 2,049 active listings at the end of 2020, which was 47.3 percent less than the previous year. Five years ago, there were just over 6,000 listings at the end of the year, and ten years ago, that number was up to 16,000.

Months Supply: Reduced inventory and strong demand resulted in a 0.7 months supply at the close of 2020. This means that, if no more inventory were added to the market, it would take about three weeks to sell all listed homes based on the current sales pace – yet another record low for central Ohio.

Lender-Mediated Properties: The foreclosure market continued to remain a small player in the overall market amid numerous forbearance efforts undertaken by the government and lenders. In 2020, the percentage of closed sales that were either foreclosure or short sale decreased by 27.0 percent to end the year at 1.8 percent of the market. Foreclosure and short sale activity may tick higher in 2021 as forbearances expire with some homeowners unable to meet their obligations.

As we look to 2021, signals suggest buyer demand will remain elevated and tight inventory will continue to invite multiple offers and higher prices across much of the housing inventory.

Mortgage rates are expected to remain low, helping buyers manage some of the increases in home prices and keep them motivated to lock in their housing costs for the long term. These factors will provide substantial tailwinds for the housing market into the new year.

“As more people are working from home, the need for more space or a different type of space has noticeably increased,” added Jones.

“If you’re uncertain about listing your home, consider this: record low-interest rates will enable you to afford more home. And if limited options are discouraging, new construction is an excellent option as there are so many new developments which can offer space that meets your needs.”

2020 Year-End Housing Report
December 2020 Housing Report

Columbus REALTORS® is comprised of over 8,600 real estate professionals engaged in residential sales and leasing, commercial sales and leasing, property management, appraisal, consultation, real estate syndication, land development and more.

The Columbus REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Licking, Madison, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Marion, Muskingum, Perry and Ross counties.

Questions to ask at an Open House or Showing

January 13, 2021 by The Columbus Team

By Maddie Ogden

Open houses and house showings can be overwhelming, especially for first-time buyers. It is the first opportunity for you to see your potential new home. While these events are exciting, it is also the perfect time for you to ask important questions about the house.

You may be wondering, what sort of questions should I be asking? That is exactly what we are here for! Here are some questions you should ask both before and during an open house.

Questions to ask before the Open House or Showing

How long has the house been on the market?
Have there been any price reductions?
Is it vacant? If so, how long has it been vacant?

Go over the following questions with your chosen real estate agent since they can be indicators of how desirable the property is.

Why are the owners selling?
Have there been any offers?
When does the seller want to move?

Questions about the sellers expectations are also important to go over with your chosen real estate agent before an open house or showing. The answers to these questions hint at what the negotiation process will be like and how quickly the seller wants to close.

Questions to Ask During the Open House or Showing

What are the house’s biggest problems?
Has the house been tested for mold, radon, lead, and/or asbestos?
When was the last time the roof was replaced?
Is the house in a flood zone?
How much do the utilities cost?

If you are seriously interested in purchasing the property, here is additional information about the community you may want to know. The answers to these questions will help finalize your decision to make an offer.

What is the neighborhood like?
What’s within walking and driving distance?
Is there a Homeowner’s Association?
What is the crime rate in the neighborhood?
Where can I get information on the local schools?

Knowing information about the neighborhood is just as important as knowing information about the house. If you don’t like the neighborhood the house is in, then chances are you will not be satisfied with the house.

Questions to Ask Yourself Before Making Your Offer

Will my furniture fit here?
What’s the cell signal like?
What updates would I make, if any?
Can I picture this house becoming my home?

Open houses and showings are an excellent way to gather information about a particular home that has caught your interest. Ultimately, you are the only one who can decide whether a house is right for you, or not. We are here to help you find a home that is a perfect match for you!

Central Ohio Poised For Record Year

December 23, 2020 by The Columbus Team

(Dec. 22, 2020 – Columbus Ohio) – Housing market activity for November and the first 11 months of 2020 has proven surprisingly strong in the wake of a pandemic that continues to plague the country. Central Ohio home sales, prices are at record highs and homes are selling in record time, whereas inventory is at a record low according to the Columbus REALTORS® Multiple Listing Service.

Home sales last month increased by 12.7 percent. Year to date sales are up 3.6 percent and poised to end 2020 as the highest sales year in central Ohio history.

Over 2,900 homes were put in contract in November suggesting yet another increase in sales for December.

Homes sold between $350,000 and $500,000 have accounted for 14 percent of the sales so far in 2020, up almost 28 percent from last year. Five percent of the homes sold during the first 11 months of 2020 sold for $500,000 to $700,000, an increase of 28.6 percent. And homes over $700,000, roughly two percent of the total homes sold this year, are showing an increase of almost 30 percent (146 homes).

Listings under $350,000, which make up almost 80 percent of the sales so far in 2020, are down 1.3 percent from last year.

“Homes over $350,000 are responsible for the increase in sales this year,” said Andy Mills, 2020 President of Columbus REALTORS®. “However, homes in the more affordable price ranges, which include options for most first-time home buyers, are down because we have simply don’t have the inventory to meet the demand.”

The average sales price of a home during the month of November was $269,391, up 15.3 percent from November of 2019. The median sales price last month was $235,000 which was an increase of 14.6 percent from a year ago.

The number of homes for sale dropped again in November to 2,591 which is 45.3 percent lower than a year ago and 19.7 percent lower than the previous month. This left central Ohio with less than a one-month supply meaning that, if no more homes were added to the market, those homes listed would be sold in less than a month at the current sales pace.

“Traditionally, housing activity recedes slightly when kids go back to school and the holidays approach,” said Mills. “But virtual school and flexible work from home schedules fueled by record low-interest rates have proven just the opposite as demand for housing continues to escalate.”

November 2020 Housing Report

Clintonville nominated as “The Nicest Place in Ohio”

October 28, 2020 by The Columbus Team

by Maddie Ogden

While it is no secret to Clintonville residents that it is a wonderful place to live, the neighborhood is now receiving state and national attention because of this. Clintonville was nominated by Larry Ziniel as one of the nicest places in Ohio and is now a finalist for the “Nicest Places in America.”

The neighborhood started gathering attention when quarantine first started back in March. Clintonville has always been a tight-knit community, but it became even closer as people started helping each other adjust to life under COVID-19. It started with an online group for groceries.

“When one neighbor would head to the store, he or she would message others to see if anyone needed anything, limiting the number of trips,” an article in Reader’s Digest about the nomination explains.

Pretty soon, neighbors were organizing socially distant picnics and birthday celebrations. On one street in Clintonville, West Dunedin Road, resident Diane Erwin organized weekly beer deliveries to support Combustion Brewery & Taproom, a new local brewery. Other neighbors wrote birthday messages on the sidewalk and put out cake to celebrate local birthdays.

“You get to pick your friends, but you don’t get to pick your neighbors necessarily, but somehow we have a really great neighborhood,” said Diane Ray, another resident of West Dunedin Road.

This nomination is not the only thing that has brought national attention to Clintonville. Back in March, a video of 9-year-old Taran Tien and his sister, 6-year-old Calliope, went viral. The two kids put on a porch concert for their neighbor Helena Schlam, 78. Schlam’s grandchildren could not make it for Passover due to COVID-19, so Taran and Calliope decided to put on a show for her to give Schlam some company.

These heartwarming stories are just a few examples of what makes Clintonville such a special place to live. It really is a tight-knit community where everybody knows everybody, and people are more than willing to help out their neighbors. It is nice to see this beloved neighborhood getting attention and this nomination is well-deserved.

3 Local Blue Ribbon School Winners Announced

October 6, 2020 by The Columbus Team

We’d like to recognize and congratulate three schools in our area who recently received The Blue Ribbon Award:

St Paul School (private – Catholic)
Tyler Run (public – Olentangy)
Buckeye Woods (public – South-Western City)

The Blue Ribbon Award is given to schools who excel in certain areas. The program was developed in 1982 to recognize and encourage academic excellence or progress in closing gaps among student subgroups. The award is given by the U.S. Department of Education. The coveted Blue Ribbon Award highlights the hard work of teachers, students and families who are willing to challenge themselves to accomplish more.

The National Blue Ribbon School Flag is given to those schools who win so that they can fly it proudly at the entrance to the building, letting everyone know that the teachers and students at the school are determined to master the learning process.

Both public and private schools are eligible to win the award. This important achievement is about more than just educational excellence. It also rewards and recognizes those schools that have closed the gap between student subgroups. For instance, in schools where students are from minorities or low-income homes, teachers work harder to help those students receive a quality education they can be proud of.

Let’s Look at the Schools More Closely

St Paul School – Westerville, OH (private – Catholic)

Formed in 1961, St Paul School has provided a strong educational foundation for multiple generations of families living in Westerville, OH. As a parish school they continue the tradition of an excellent Catholic education while incorporating contemporary pedagogy and modern technology. They strive to keep pace with current educational practices, but their core value of instilling the importance of a life of service is paramount. They challenge students to use God’s gifts to identify means by which they can become productive adults who recognize that service to others, especially the poor and needy, is a principal goal in life.

Tyler Run – Powell, OH (public – Olentangy)

Tyler Run Elementary School (TRES) is successful due to the sense of community among students, staff, parents, and the community. Tyler Run facilitates maximum learning for all students through engaging in many activities to build leadership skills and celebrate diversity.

The heart of their leadership is the Tyler Run Tiger’s “Paw”sitive Promise. In their community, the focus is on Teamwork, Respect, Effort, Spread Kindness (T.R.E.S). Students and staff are reminded daily of the promise through a catchy chant with hand motions. These four behaviors are taught and expected as TRES builds a positive community. Students, staff, and the community gather together to celebrate the efforts of students in a quarterly town hall meeting by recognizing students who have consistently demonstrated these behaviors.

Buckeye Woods –Grove City, OH (public – South-Western City)

Buckeye Wood Elementary is the largest elementary school in the South-Western City School District (SWCSD). As such, they face a variety of unique challenges. One of their most pressing challenges has been making certain that each and every student’s unique social-emotional and academic needs are met. The SWCSD provides high quality curriculum resources and professional development. Buckeye Woods teachers use these resources and training, along with knowledge of their students’ strengths and needs, to make skillful instructional decisions. Formative assessments enable teachers to use data-driven decision making to the fullest advantage. Teachers customize and target instruction for all students and utilize an excellent support staff to provide interventions, as needed, to supplement and enrich classroom instruction.

We Support our Schools!

The Columbus Team supports efforts like this in our community because we know it makes our world a better place to live when children can get a great education. We understand that homeowners want to choose their school districts and we can direct them to the information they need.

If you aren’t sure which district is best for your family, you can review the “School Report Cards” produced by the State of Ohio. You can compare all school districts including Gahanna, Dublin, Worthington, Olentangy, and others to find the one that fits your needs.

The Columbus Team has compiled information on the parochial, private, alternative, and public schools in the Columbus area as well, and we would be happy to pass that on to you!

Information on Columbus colleges and universities is also available. We’re here to help home buyers and home sellers in any way we can.