Central Ohio Housing Report – June 2022

Reduced buying power due to rising interest rates and inflation is being blamed for the 9.7% drop in home sales in June, with July expected to follow suit, but competition for homes remains strong. Read the entire housing report below….

HOME SALES FINALLY SLOWING

Incredibly strong demand has fueled home sales in central Ohio for the last decade, however rising interest rates and inflation have started to take their toll on sales this year.

June home sales dropped 9.7 percent last month and are now 2.4 percent behind the first six months of 2021. Pending sales in June were down almost 14 percent suggesting that July sales will also see a year over year decline.

“Higher interest rates and inflation along with escalating home prices are all working in combination to reduce buying power,” said Sue Van Woerkom, 2022 President of Columbus REALTORS®. “Being able to afford less house today than you could six months ago is quite a shock so home buyers have a lot to consider right now.”

Despite these obstacles, competition for homes remains fierce as two thirds of the homes sold in the second quarter this year had buyers paying more than the advertised list price.

Sales Price vs. List Price - June 2022

All cash sales continue to rise as buyers compete for available homes. Although conventional financing has declined slightly, the number of buyers using FHA financing has dropped considerably over the last decade.

FHA loans have been attractive for first-time and lower-income buyers because they come with lenient credit requirements, low closing costs and competitive interest rates. The added expense of FHA mortgage insurance, however, is a key drawback to this avenue of financing.

For conventional loans backed by Fannie Mae and Freddie Mac, private mortgage insurance is not required once the homeowner’s equity reaches 80 percent. In the case of an FHA loan, mortgage insurance could be required for the life of the loan, regardless of equity.

“Buyers who are making an offer using FHA or VA financing have found it increasingly difficult to compete against buyers who are offering cash or using conventional financing,” said Van Woerkom.

“Government insured loans could have stricter requirements and, on average, may take a little longer to close. While having more relaxed credit requirements, when it comes time to decide which offer to accept, sellers might want to take these factors into consideration.”

The median price of a home sold during the first half of 2022 was $287,500, up 14.5 percent from a year earlier. The average price of $330,002 marked a 12.7 percent increase. The average sales price is the total volume divided by the number of homes sold. The median is the midpoint — half the homes sell for less, while half sell for more.

Homes in the higher price ranges have been gaining market share due to the lack of homes available in the more affordable price ranges.

The time it takes to sell a home is largely determined by its price. It’s going to take a little longer to sell a luxury home than a home more attainably priced. Even so, homes in all price ranges have been selling in record time this year.

June 2022 Housing Report

Columbus REALTORS® is comprised of almost 10,000 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, Marion, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry and Ross counties.

Central Ohio Housing Report – November 2021

November 2021 Housing Report: 2021 Home Sales Have Already Passed 2020

There have been 33,548 homes and condominiums sold in central Ohio this year (January through November). Not only is this 9.3 percent higher than the same period last year, but it surpasses the total number of homes sold (33,431) in 2020.

Sales last month were 8.7 percent higher than last year and set a record for home sales during the month of November.

The median sale price increased 11.4 percent to $261,835 in November, and the average price of $295,723 marked a 9.8 percent increase from last year.

Although housing activity slows heading into the winter months, November saw the highest number of new listings since November 2007. Year to date (January through November), new listings are up to 38,033.

“The last time we had this many new listings was in 2010 when there were 17,471 homes for sale and sales were less than half of what they are today,” said Michael Jones, 2021 President of Columbus REALTORS®. “So, the fact remains, we are not seeing fewer homes being listed, we’re seeing an exponential increase in the number of folks looking to buy in central Ohio.”

The high demand left inventory at 2,619 and the months supply at 0.9 which means, if no more homes were added to the market, buyers would deplete the stock in less than a month.

“Even with the seasonality of real estate in central Ohio, we’re still seeing strong buyer activity,” added Jones. “With economists forecasting mortgage interest rate increases for 2022, sidelined buyers shouldn’t procrastinate too long.

Roughly one in five homes (19.3 percent) were cash transactions in November. Of those buyers that financed their home purchase, just over half (53.1 percent) used conventional financing, 9.4 percent used FHA financing and 4.6 percent secured a VA loan.

It took an average of 17 days to sell a home in November. Homes under $500,000 sold in an average of 16 days. Homes in the $500,000 to $700,000 price range sold in an average of 20 days, and homes over $700,000 were on the market for an average of 39 days.

For the first eleven months of 2021, homes have sold in an average of 16 days. Breaking this down by price range, homes under $350,000 sold in an average of 14 days. Homes priced $350,000 -$500,000 took 17 days. Homes between $500,000 and $700,000 took 24 days to sell and homes over $700,000 sold in an average of 36 days.

November 2021 Housing Report

Columbus REALTORS® is comprised of almost 9,500 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, Marion, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry and Ross counties.

Central Ohio Housing Report – October 2021

The average sale price of a home in central Ohio is up 12.9 percent year-to-date. Property sales over $350,000 are rising and homes listed from $350,000 to $500,000 average only 15 days to sell! No need to wait until the holidays are over before you list; buyers are looking for your home right now.

October 2021 central Ohio Housing Report: Home sales increase despite drop in new listings

Home sales and prices showed healthy increases in October despite a slight drop in the number of homes added to the market.

Home sales were up 5.0 percent in October to 3,395. At 30,497 year-to-date (January through October), home sales are on track to set a new annual record for central Ohio.

There were 3,336 homes listed for sale in October, down 1.5 percent from last year and 8.6 percent from the previous month according to the Columbus REALTORS® Multiple Listing Service.

“We had fewer listings added to the market in October, but that’s more a factor of seasonality,” said Michael Jones, 2021 President, Columbus REALTORS®. “Housing activity usually slows down a little when the temperatures start to cool and the holidays are approaching.”

The median sale price increased 8.9 percent to $261,478 and the average sale price was up 8.2 percent in October to $298,473.

Year to date, the average sale price is $298,730 and the median sale price is $260,000, up 12.9 percent and 12.6 percent respectively.

“Although, we’re still seeing high demand for homes in all price ranges, last month, homes sales over $350,000 were responsible for increased market shares,” added Jones. “We saw fewer homes sold under $350,000 due, in great part, to the lack of adequate supply.”

Roughly one in four homes (23.8 percent) were cash transaction in October. Of those buyers that financed their home purchase, 58.4 percent used conventional financing, ten percent used FHA financing and 4.8 percent secured a VA loan.

It took an average of 15 days to sell a home in October.

Homes under $350,000 sold in an average of 13 days. Homes sold between $350,000 and $500,000 took about 15 days to sell. Homes in the $500,000 to $700,000 price range sold in an average of 21 days, and homes over $700,000 were on the market for an average of 32 days.

For the first ten months of 2021, homes have sold in an average of 16 days. Breaking this down by price range, homes under $350,000 sold in an average of 13 days. Homes priced $350,000 -$500,000 took 17 days. Homes between $500,000 and $700,000 took 24 days to sell and homes over $700,000 sold in an average of 36 days.

October 2021 Housing Report

Columbus REALTORS® is comprised of almost 9,500 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, Marion, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry and Ross counties.

Central Ohio Housing Report – September 2021

The highest number of new listings came on the market in the third quarter of 2021. The last time this many homes were listed in a single quarter was 2006! Of those new listings almost 90 percent went into contract. Read the entire market report below for more interesting facts about central Ohio housing.

Record Listings & Sales in 3rd Quarter

Although inventory has been decreasing for the better part of 12 years, the central Ohio housing market saw year over year gains in the third quarter resulting in record home sales.

Third quarter saw 12,291 homes added to the market, which was almost 13 percent higher than 2020 (10,903). This is the highest number of new listings added in a quarter since 2006 when total inventory was over 18,600 and REALTORS® were selling 53 percent of the new listings.

Last quarter, home sales averaged over 3,600 as REALTORS® sold almost 90 percent of the new listings setting new records for home sales in central Ohio.

“Tight inventory over the past several years created a very competitive market causing some angst for many home buyers,” said Michael Jones, 2021 President, Columbus REALTORS®. “The increase in new listings has been a benefit and, as a result, we saw significant increases in homes that went into contract or have already sold.”

The average sale price increased 8.5 percent to $301,572 and the median price was $269,900 in September, a gain of 12.5 percent. Year to date, the average sale price was $298,817 and the median sale price was $260,000, up 13.5 percent and 13.0 percent respectively.

Conventional financing still reigns with almost 64 percent of the home sales in 2021.

The share of homes that sold for cash, versus financing, is just over 20 percent this year which is 1.5 percent more than in 2016, but still 7.3 percent fewer than homes sold a decade ago.

“Cash sales have been credited as the reason many home buyers have been at a disadvantage in getting the winning contract,” said Jones. “However, this new data suggests that buyers seeking financing still dominate the lion’s share of home sales and can be successfully competitive.”

The time it took to sell a home rose to 14 days last month.

Homes under $350,000 sold in an average of 12 days. Homes sold between $350,000 and $500,000 took about 15 days to sell. Homes in the $500,000 to $700,000 price range sold in an average of 19 days, and homes over $700,000 were on the market for an average of 26 days.

For the first three quarters of 2021, homes have sold in an average of 16 days. Breaking this down by price range, homes under $350,000 sold in an average of 13 days. Homes priced $350,000 -$500,000 took 17 days. Homes between $500,000 and $700,000 took 25 days to sell and homes over $700,000 sold in an average of 36 days.

September 2021 Housing Report

Columbus REALTORS® is comprised of almost 9,500 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, Marion, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry and Ross counties.

Central Ohio Housing Report – August 2021

Three out of five homes sold last month sold over the asking price! The central Ohio housing report graph below is a helpful visual reference showing how often and by how much that was happening. Although inventory is still tight, there were 24% more homes on the market than last year at the same time.

Homes Selling for More than List Price

Unusually high demand for homes in central Ohio and lack of sufficient inventory has resulted in homes selling for more than the asking price for the last couple years.

The number of homes that sold for less than the list price as well as those that sold for more than the list price started almost equally early in 2021. However, homes that sold for more than the asking price escalated quickly and peaked this summer.

Three out of every five homes sold in August sold for more than the home was listed for according to Columbus REALTORS®.
“With such tight inventory, many buyers continue making the decision to offer more than the home was listed,” said Michael Jones, 2021 President, Columbus REALTORS®. “However, in the last couple months, buyers seem to be more contemplative when considering their offers and how much they’re willing to go over what the home may appraise for.”

Even with the tempering of over list price offers, August recorded the highest number of home sales in central Ohio history. The 3,694 sales last month was 9.3 percent higher than one year ago. Year to date (January – August), home sales are 10.3 percent ahead of 2020.

Record high contracts documented in August suggest home sales in September will also be impressive.

The number of listings added to the market last month was almost 12 percent higher than August of 2020, but down almost 13 percent lower than July.
“Fewer homes listed for sale in the fall is not surprising as kids head back to school and traditionally, the housing market tends to take a breath,” added Jones.

“However, even with record sales last month, the number of homes still available for sale was 24.4 percent higher than last year, providing buyers with even more selection.”

The time it took to sell a home remained at 11 days last month.

Homes under $350,000 sold in an average of 9 days. Homes sold between $350,000 and $500,000 took about 10 days to sell. Homes in the $500,000 to $700,000 price range sold in an average of 17 days, and homes over $700,000 were on the market for an average of 28 days.

For the first eight months of 2021, homes have sold in an average of 16 days. Breaking this down by price range, homes under $350,000 sold in an average of 14 days. Homes priced $350,000 -$500,000 took 17 days. Homes between $500,000 and $700,000 took 26 days to sell and homes over $700,000 sold in an average of 38 days.

The average price of a home sold in August was $308,087, up 10.4 percent from August of 2020. The median sale price was up 13.2 percent to $275,000.

August 2021 Housing Report

Columbus REALTORS® is comprised of almost 9,500 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, Marion, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry and Ross counties.