2020 Market Report: Central Ohio Broke All Records!

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.

First-Time Homebuyer Savings Act

First Time Homebuyer Savings Act

On April 30th 2019, Senators Theresa Gavarone & Bob Peterson introduced Senate Bill 139 in the Ohio Senate to create a tax deductive savings account for Ohioans. This Ohio income Tax Deduction is designed to help empower Ohioans to prepare for homeownership in a meaningful way, with a tax-free savings account. With 8 in 10 non-homeowners reporting that affordability is a barrier to home ownership, this Bill may help ensure the American Dream of homeownership by creating a way for families to save for their loved ones. Details in the Bill include the following:

Contributions:

  • Annual maximum contribution is $5K for single person and $10K for married people
  • Max 15-year cumulative contribution amount is $50K for single and $100K for married people
  • Contributions plus interest are tax deductible

Management

  • Account is self-managed; banks have no liability or responsibility of management

Penalties

  • Withdraw penalty is 10%

Exceptions

  • Account holder death or disability
  • Bankruptcy
  • Monies transferred from 1FHBSA to another FHBSA
  • Financial Institution fees

Ohio REALTORS® reports that transitioning from a renter to homeowner brings a marginal increase in consumer spending for goods and services with an estimated $97 million in economic activity in Ohio and $25K per transaction in construction-related economic activity in the state from newly constructed housing units. As REALTORS®, we believe home-ownership strengthens our communities, helps build generational wealth and also stimulates our local and state economies.

Senate Bill 139 has been referred to the Ways and Means Committee with the first hearing to have taken place on May 21, 2019. Stay tuned for updates from The Ohio Legislature!

They Won Golf Gold! Congratulations to Robbie & Sue Lusk-Gleich!

sue-robbie-gold-medal-winnersThe Special Olympics Unified Sports program is dedicated to promoting social inclusion by teaming athletes with and without intellectual disabilities on the same team to train, play, and compete together. Working together on a shared goal brings people together and helps them to concentrate on their shared interests and similarities.

We are very proud to announce that Sue and Robbie’s team won gold in their Ohio Division Golf Championship!

Sue explains, “I have played and coached Unified Golf for 17 years with the Columbus Public Special Olympics program. This year Robbie became my new partner. He is 41 years old, and a talented golfer.”

Unified Golf means that both team members play with one ball. They alternate tee shots, with one partner taking odd-numbered holes, the other takes even-numbered holes. After the tee shot, the partners alternate shots until they hole out, with the number of shots taken being their joint score.

Sue and Robbie have spent the spring and summer practicing, competing and going to qualifiers in order to qualify to enter the State Tournament in Cincinnati, which was held the 17th and 18th of September at Meadowlinks Golf and Golf Academy. They qualified to participate at the state level and  won gold in their division!

Sue said “On the 18th, we achieved something we had not accomplished during the practice season, and that was in our final round on 9 holes we had 4 pars! That was a first for us, and what a great place to have that achievement!”

Special Olympics Ohio is wonderful way to get involved in our community, and a non-profit worthy of your donations and volunteer time. The Columbus Team is proud of Sue’s involvement as well as her win, and congratulates all the Special Olympics Ohio athletes and their achievements!

It’s Official – We Love Our Work!

happy at work

Keller Williams Realty, Inc. Ranked in America’s Top 10 Workplaces

AUSTIN, TEXAS (May 16, 2012) – Keller Williams Realty, Inc. announced today it has been recognized as one of America’s Top 10 Workplaces, according to the first annual National Top Workplaces list compiled by Workplace Dynamics.

“Our culture is our strongest asset and the reason that so many people want to be with us,” Mary Tennant, COO of Keller Williams Realty shares. “Imagine what it would be like to work in a culture every day with people that you feel love, kindness, caring and humor with. Imagine working in an environment where there is a passion for every single person to succeed at the highest level.”

“If this award proves anything, it’s that we only succeed when our associates do,” added Mark Willis, CEO. “We are proud to be in business with the best who are lifting us up each day and proud to be fulfilling our mission of building careers worth having, businesses worth owning and lives worth living.”

The list of National Top Workplaces is based solely on employee feedback surveyed from 805 companies of more than 1,000 employees, which included over half a million survey responses. According to survey results, Keller Williams’ ranking was based on its overall culture and high levels of organizational health including training, benefits, compensation, and work-life balance. “Put simply, the most successful companies appear to be the ones that employees believe in,” said Doug Claffey, CEO at WorkplaceDynamics.

For more information and the full list of the Workplace Dynamics Nation’s Top Workplaces, please visit http://topworkplaces.com/stories/americas-top10-workplaces.php