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.

2019 Central Ohio Real Estate Market Forecast for Fall

2019 Central Ohio Real Estate Market Forecast for Fall

As we head into fall this year, we cannot assume a typical real estate market since atypical has become the norm the past couple of years.  

We are still looking at a surplus of buyers and a shortage of homes available for them to purchase.  Interest rates remain favorable, especially for first-time buyers trying to break into the real estate market.  But as housing prices are being pushed up due to the lack of inventory, the cost may shut new buyers out.  

Housing shortages are due to a variety of reasons, but the top 3 are:

  1. boomers choosing to age in place rather than move,  
  2. lack of consumer confidence which dropped 9.8 points in June, 
  3. the construction market has faltered with affordable housing new builds due to labor issues and the cost of materials.

Nationally, 35% of home sales in June were savvy first-time homebuyers who are taking advantage and locking in those lower interest rates.

The National Association of Realtors chief economist, Lawrence Yun said, “Home sales are running at a pace similar to 2015 levels – even with exceptionally low mortgage rates, a record number of jobs and a record high net worth in the country,” and attributed the slow sales to the ongoing lack of inventory.

Here in central Ohio, our days on the market are lower than the national average in June of 27 days.  Central Ohio’s average was 23 days for the same time with the more affordable properties selling even faster at 18 days.

Home values are rising and a 5.6% increase by May 2020 is estimated by the Home Price Index Forecast.

The last four months of 2019 could pick up or slow down!  If hesitant homeowners finally decide to sell, this could open the floodgates to buyers unless consumer confidence & rising prices keep buyers from purchasing in traditional pre-recession numbers.  

What we don’t see slowing down anytime soon is affordable turn-key housing! Millennials are the group to watch since they are the largest group on the cusp of purchasing.  We’ll be watching Senate Bill 139, Ohio’s First-Time Homebuyer Savings Act!  Too late for 2019, but once this bill passes, it will assist all future first-time purchasers with a tax-free savings account to save for their first home.

If you’re contemplating a sale and are wondering what the current market value of your home is, we can help! Call The Columbus Team at (614) 888-6100 to set up an appointment for a comprehensive analysis. There is no obligation to list!