The Columbus housing market continues to boom and the average sales price of existing homes has surpassed $200,000.
As we approach the peak of the spring buying season, home sellers got used to multiple offers above list price and contracts within days of listing their property. April housing data indicate that it will get even more competitive this summer. I don’t see an end to the sellers market anytime soon.
Here are the highlights of the April 2016 housing report:
- Pending contracts reach an all-time high (4,115 – see below)
- Inventory drops 31% below last year’s level
- Average sales price is up by 9.5% ($202,393)
Pending Contracts
Pending contracts (red line) usually peak in May or June. I expect they will increase even more in the next 2 months. Traditionally, 70% to 80% of pending contracts close every month. This means we will see record home sales this summer.
Average Sales Price
The average sales price of existing home is cyclical. It tends to peak in June or July. This graphic indicates that it may reach $220,000 this summer. That would be an all time high.
Listing Inventory
I expect the listing inventory to remain low. Although there are more new listings hitting the market every day, the number of motivated buyers is still higher.
Why Home Owners Delay Selling
There are 3 reasons why home owners do not sell right now, despite of rising values, low interest rates and an abundance of buyers:
- Can’t Find a New Home Home owners delay listing their home, because they are afraid they won’t find a new place to move to.
- Low Equity Some homeowners are still under water with their mortgage, many have very low equity. They are waiting for values to rise even more and sell at a profit.
- Delayed Maintenance Homes that have not been updated for years are hard to sell, even in today’s sellers market. Many homeowners keep delaying the improvements necessary to sell their home for top dollar.
April 2016 Housing Stats
- Home Sales have increased by 6.5% to 2,671 units (compared to Apr 2015).
- Home Values are up by 9.5% with an average sales price of $202,393.
- Days on Market dropped to 52 in April. That’s 16.1% lower than in April 2015. The supply is still at 2.0 months.
- The Inventory is down to 5,361 homes listed for sale – virtually the same as the previous month. That’s 31% lower than last year.
You can download the complete April housing report and all local housing reports at www.columbusrealtors.com/stats.