The Columbus housing market is on track to hit a record year.
Are we over the top, yet? Maybe.
Here’s why I believe the market will normalize over the next 12 months.
New Listings Up By 10.4%
One indicator for a normalizing market are New Listings.
As you can see in the chart below, the number of homes added to the listing inventory every month has been very consistent for the past 4 years. New listings drop to a low in December and reach a peak in May or June.
In August 2017 we saw a sharp increase. 3,740 properties were added to the inventory. This by itself is not a record, however, it’s 10.4% higher than in August 2016.
This is the first time news listings have increased substantially since 2013.
Why the Inventory Remains Low
While new listings were added to the inventory at the same rate every year, the number of closed sales has consistently increased.
The next graphic compares new listings (red) to closed transactions (blue).
The gap between the two has been diminishing quickly, resulting in historically low inventories.
Interesting Side Note: December is the only month when the number of sales is higher than new listings. Last December this gap was 800 homes.
Days on Market will Increase this Fall
Days on Market (DOM) have been below a month for most of the year. We’ve been down to 27 days in August.
Keep in mind that the DOM number only includes homes that actually sold. Active listings, on the other hand, have been on the market for 84 days.
There’s a dichotomy between homes that sell and homes that sit on the market.
Anything that sells goes in contract in a few days or weeks. Typically, these homes are in excellent condition, have been upgraded and are priced correctly.
The homes that sit on the market for more than a month are often overpriced, need upgrades or may be difficult to show.
Indication of a Slower Sales Cycle
I’ve noticed that listings take a little longer to sell, even in popular, suburban school districts.
For instance, in the Scioto Reserve subdivision in Powell the DOM of closed transactions was 34 days (for sales since July 1, 2017) and active listings have been on the market for 60 days in average.
August 2017 Columbus Housing Stats
Home Sales were up by 0.8% in August with 3,248 closed transactions.
Home Values have increased by 6.7% year over year with an average sales price of $217,800 (which is $10,000 lower than in July). Don’t worry – that’s seasonal.
Days on Market were down to 27 in August. That’s 7 days shorter (-20.6%) than a year ago. The supply is exactly 2 months.
New Listings 3,740 homes were listed for sale in August – that’s 10.4% more homes than in August 2016.
The Inventory is virtually unchanged with 5,444 homes listed for sale – 13.2% lower than a year ago.
You can download the complete housing report and all local reports at www.columbusrealtors.com/stats
What Does This Mean for You?
Fall is an excellent time to sell your home. The inventory will likely increase next year and interest rates are on their way up. This means your home value has probably reached its peak. No reason to delay listing your home.
Call or text me at (614) 975-9650 and let me explain how my 4 day marketing blitz will yield more offers and top dollar for your house!