Central Ohio Housing Report – February 2021

New listings are down almost 50% in central Ohio in February when compared to one year ago.

Multiple offers are still the norm, but don’t be dissuaded from buying right now.  Choose an active agent, like those of us on The Columbus Team, who can successfully guide you through creating a winning offer.

If you’re considering a sale, we can help you coordinate your buy and sale so you won’t be caught homeless through the process.  Just ask us how!  

Can inventory get any lower?

(Mar. 22, 2021 – Columbus Ohio) Although new listings remained relatively unchanged over the last decade, there was a noticeable drop in new listings in February 2021. Down almost 17 percent from the average for the second month of the year, the drop did little to assuage the many buyers looking for homes today.

Fewer homes added to the market resulted in fewer contracts and sales. Although sales were only down three percent last month, In Contracts – an indication of sales to come – dropped almost 12 percent.
 
Five years ago, there were over 5,400 homes for sale in central Ohio. Ten years ago, there were over 15,500 homes for sale.
 
However, February 2021 ended with just 1,689 homes listed for sale, down 48.1 percent from a year ago and the lowest on record according to the Columbus REALTORS® Multiple Listing Service.
 
Additionally, the months’ supply remains at 0.6 which means that, if no more inventory were added to the market, it would just over two weeks to sell all listed homes based on the current sales pace.
 
The BIA of Central Ohio reported that 11,864 housing permits were obtained by builders in 2020, a 46 percent increase from 2019 and the highest number since 2005 and preliminary data suggests a 32 percent increase in single-family permits in January.
 
Even with the additional new homes, central Ohio is still short of what is needed to meeting existing demand.
 
Areas that saw an increase in new listings last month include Grove City, Gahanna, Groveport, Downtown Columbus, Canal Winchester, Whitehall, Obetz, and Johnstown.
 
“We’ve never seen inventory this low before,” said Michael Jones, 2021 Columbus REALTORS® President. “As a result, housing is moving at a frenzied pace and we’re seeing multiple offers and offers over asking price.”
 
“Buyers interested in winning the bid need to be prepared and move quickly.”
 
Although the average days on market last month was 26, the time it takes a home to sell is based on several factors such as location, condition, and price.

Homes under $350,000 sold in an average of 21 days. Homes sold between $350,000 and $500,000 took about 39 days to sell. Homes sold between $500,000 and $700,000 sold in an average of 57 days and homes over $700,000 took an average of 68 days to sell.
 
The average home sale price was $266,893 in February, an increase of 13.4 percent. At $255,500, the median sale price reflected a 7.4 percent gain.
 
With demand significantly outpacing supply, most homes sold in February sold for more than the list price. Those home that did sell for more than asking price, sold for an average of five percent more.
 
“Many homeowners have been reluctant to open their homes for showing due to concerns about the pandemic,” added Jones. “We expect to see an increase in sellers entering the market this spring as more and more people get vaccinated.”
 
February 2021 Housing Report

Columbus REALTORS® is comprised of over 8,700 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.

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.

Central Ohio Poised For Record Year

(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

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.

Best Place to Invest In Real Estate

As the pandemic drags on, home sales in Columbus, Ohio have definitely been affected. However, the numbers show very clearly that the effects are positive. In August 2020, we experienced robust activity for both buyers and sellers. Homes sold more quickly as well. Ohio continues to be listed nationwide as one of the best places to invest in real estate.

Another unusual aspect involves the effects of school closures on families that traditionally move during the summer months. They will now have a longer period of time to find a new place and get settled. In spite of continuing cases of covid-19 reported in Ohio, the general public is doing its best to return to normal. There are positive signs afoot and families do seem to be looking forward more this year to Thanksgiving and Christmas. Keep reading to learn all the specifics.

Record home sales in August!

(Sept. 22, 2020 – Columbus Ohio) – The central Ohio housing market saw record home sales in August 2020 as almost 3,400 homes and condominiums changed hands, up almost five percent from last year and the highest number of sales documented for this late summer month.
 
The number of homes closed during the first three quarters of 2020 is now just 1.3 percent behind 2019 according to the Columbus REALTORS® Multiple Listing Service.
 
“Traditionally we experience a higher number of sales in August as buyers seek to move into a new home prior to the start of the school year,” said Andy Mills, 2020 Columbus REALTORS® President. “However, given that so many children are now attending school virtually, or in a hybrid situation, that opens up a broader time frame for families to pursue a move.”

Days on Market.  Record home sales continue to prove that Ohio is one of the Best Places to Invest In Real Estate

Homes sold even more quickly than in months past during August. Homes under $350,000 sold in an average of 17 days. Homes sold between $350,000 and $500,000 took about 33 days to sell. Homes sold between $500,000 and $700,000 sold in an average of 52 days and homes over $700,000 took an average of 75 days to sell.
 
Although the number of residential homes and condominiums for sale during the month of August 2020 trailed the previous month by just 7.0 percent, the month was 47.0 percent less than the number for sale during August 2019.
 
There were 3,600 homes newly listed for sale last month providing motivated buyers additional inventory to consider.
 
As a result, there were almost 4,200 homes put into contract in August, a jump of 14.9 percent from 2019 and up slightly (0.8 percent) from July 2020.
 
For the second consecutive month, the average sale price exceeded the last list price. The average sale price in August was $279,134, up 12.8 percent from last year and the median sale price of $243,000 rose 13.8 percent over August 2019.

“Real estate has been, and remains, the foundation of wealth building for the middle class and a critical link in the flow of goods, services, and income for millions of Americans,” added Mills. “Accounting for nearly 15 percent of the Ohio gross state product, real estate is clearly a major driver of the U.S. economy.”

Current housing report – August 2020
 

Columbus REALTORS® is comprised of over 8,100 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.

The Reason Columbus ranked #1 Hottest Housing Market in March

reason Columbus ranked #1 hottest housing market in March
We’ve always thought Columbus was a hot market but the stats this month back up our favoritism!

(April 22, 2019 – Columbus, OH) – Earlier this month, the Columbus area was ranked #1 hottest housing market in March by Realtor.com based on home listing activity and days on the market.

Last month, there were one thousand more homes listed for sale compared to February. The jump from 2,200 to 3,200 new listings generated increased interest and foot traffic from buyers actively seeking to purchase a home in central Ohio.

As a result, more homes were sold or put in contract in March according to the Columbus REALTORS® Multiple Listing Service.

Months supply remains at 1.4 meaning that, if no more inventory were added to the market, it would take less than a month and a half to sell the current inventory based on the current sales pace.

“Even with the increase in new listings, we ended the month with roughly the same number of listings as we had in February,” said John Myers, 2019 Columbus REALTORS® President. “This means consumers bought as much as was added to the market.”

Although March 2019 homes sold or pending sale was down from one year ago, sales were up 24.7 percent from the previous month and homes that went into contract spiked 32.3 percent from February.

The median sale price of a home in central Ohio sold during the first quarter was $189,900, up 6.1 percent from one year ago. The average sale price was $221,372, up 3.9 percent from the first quarter of 2018.

“Given our strong job growth, low-interest rates and so many central Ohio buyers looking to buy a new home, we’re hoping to see new listings continue to increase as we head into the summer months,” added Myers.

Current housing report – March 2019

Columbus REALTORS® is comprised of over 8,300 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.