The Columbus housing market continues to struggle with historically low inventories. At the end of February only 3,376 homes were listed for sale in Central Ohio. That inventory will last for just 1.2 months at the current rate of sales. There’s no relief in sight. The number of homes listed for sale in January and February of this year is 8.8% lower than last year.
Home Values Keep Rising Everywhere
In February the average sales price increased by 10.4% as compared to the same month last year. This is mostly due to the high demand and low inventory.
Since 2012, home values have increased by 17.4% in Dublin, 27.2% in Powell, and 28.5% throughout Central Ohio.
New Home Sales Decline
The number of new home sales has declined nationwide since the beginning of the year. Even in today’s hot market builders have a hard time selling their inventory homes, despite the fact that you can get them at a substantial discount.
Most new construction homes are way too expensive for the average buyer. When you build, you have to pay a minimum of $400K for the base model. After selecting options most buyers easily add another $100K to the price.
Only 8.9% of all home buyers can afford a house over $400K. The majority of buyers (54%) are looking for homes between $100K and $250K. You won’t find any new builds in this price range, and existing homes fetch multiple offers above list price.
How First Time Buyers Can Win
Many first-time buyers have been priced out of the market. They can’t compete with aggressive cash offers who forgo appraisal contingencies and home inspections.
First time buyers face a real dilemma. Home values keep going up at a rapid pace and interest rates will increase in 2018 as the Fed tries to rein in inflation.
Here are my recommendations …
Look at homes that have been on the market for more than 30 days. There’s usually one reason why they don’t sell: they are overpriced for the condition they are in. As most buyers want move-in ready homes, you have a leg up and much less competition if you are handy and don’t mind doing some upgrading yourself.
Even the most stubborn sellers become motivated if they don’t get any offers in a month or two. I can help you with find these homes and negotiate a price that fits the true value of the property.
February 2018 Columbus Housing Report
These numbers show Central Ohio home sales during the month of February 2018 as compared to the same month a year ago:
- Closed Sales 1,681 (-2.9%)
- Pending Contracts 2,548 (-7.5%)
- Average Sales Price $210,791 (+10.4%)
- Days on Market 44 (-15.4%)
- New Listings 2,373 (-6.5%)
- Months Supply of Inventory 1.2
For the complete Columbus housing report, as well as market stats for your suburb and school district go to columbusrealtors.com/stats/
If you have question about this report or want to find out specifics on your neighborhood, Call or text me at (614) 975-9650!