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2020 Market Report: Central Ohio Broke All Records!

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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.

Future home sales looking strong in central Ohio

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Future home sales looking strong in central Ohio

Last month was the second highest number of homes put into contract in Ohio in 12 years! Buyers are still out looking for homes this last quarter of 2018. Don’t let the holidays hold you back from listing your property. Although homes are taking slightly longer to sell, the market continues to be active this season.

(November 21, 2018 – Columbus, OH) – Although down 4.1 percent from a year ago, homes put in contract jumped 3.7 percent from September to October. This was the second highest number of homes in contract in October in 12 years, according to the Columbus REALTORS Multiple Listing Service (MLS).

“A sale is listed as ‘in contract’ when the contract has been signed but the transaction has not closed,” said Sara Walsh, 2018 Columbus REALTORS® President. “In Contracts are a critical metric we use to predict future sales as those homes are usually finalized within one or two months of signing.”

There were 2,742 homes and condos sold in October, which is 18 homes less than a year ago, but 149 more home sales than September. These homes took longer to sell in October as the days on market increased almost 14 percent.

“With the increase in inventory, recent data showed that 44.43 percent of home sellers reduced the price of their home to ensure a timely sale,” said Walsh. “Yet, sellers are still seeing healthy appreciation in the value of their home.”

The average sales price of a home in central Ohio in October was $225,519, which is up 4.7 percent from a year ago. The median sales price was $193,918, up 6.0 percent from October 2017.

There were 3,059 homes and condos added to the market in October, which is 5.0 percent more than the previous year.

This left inventory at 5,405 in October which was up 5.3 percent from one year ago.

“With the uptick in inventory, central Ohio buyers now have more options to choose from when selecting a home,” Walsh said. “Even though kids are back in school and the temperature has dropped, potential sellers need to know that buyer demand remains strong.”

According to the latest Housing Market Confidence Index by the Ohio REALTORS®, 98 percent of central Ohio REALTORS® expect the housing market to be moderate to strong over the next six months.

When asked about how they’re experiencing autumn’s normal seasonal housing market slow down, more than half of respondents said the market seems somewhat more sluggish.

(November 21, 2018 – Columbus, OH) – Although down 4.1 percent from a year ago, homes put in contract jumped 3.7 percent from September to October. This was the second highest number of homes in contract in October in 12 years, according to the Columbus REALTORS Multiple Listing Service (MLS).

“A sale is listed as ‘in contract’ when the contract has been signed but the transaction has not closed,” said Sara Walsh, 2018 Columbus REALTORS® President. “In Contracts are a critical metric we use to predict future sales as those homes are usually finalized within one or two months of signing.”

There were 2,742 homes and condos sold in October, which is 18 homes less than a year ago, but 149 more home sales than September. These homes took longer to sell in October as the days on market increased almost 14 percent.

“With the increase in inventory, recent data showed that 44.43 percent of home sellers reduced the price of their home to ensure a timely sale,” said Walsh. “Yet, sellers are still seeing healthy appreciation in the value of their home.”

The average sales price of a home in central Ohio in October was $225,519, which is up 4.7 percent from a year ago. The median sales price was $193,918, up 6.0 percent from October 2017.

There were 3,059 homes and condos added to the market in October, which is 5.0 percent more than the previous year.

This left inventory at 5,405 in October which was up 5.3 percent from one year ago.

“With the uptick in inventory, central Ohio buyers now have more options to choose from when selecting a home,” Walsh said. “Even though kids are back in school and the temperature has dropped, potential sellers need to know that buyer demand remains strong.”

According to the latest Housing Market Confidence Index by the Ohio REALTORS®, 98 percent of central Ohio REALTORS® expect the housing market to be moderate to strong over the next six months.

When asked about how they’re experiencing autumn’s normal seasonal housing market slow down, more than half of respondents said the market seems somewhat more sluggish.

Current housing report – October 2018

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.