Market Update: Home Values Rise by 11% in Feb, Keeping First-Time Buyers Struggling

by | Mar 21, 2022 | Market Updates

There were no surprises in the February housing report. Home sales were up by 1.8%, while pending contracts slipped by 1% as compared to a year ago.

The 5% increase in new listings improved the inventory by only 3.3%.

As of this morning, there were 1,540 active listings on our MLS, but only 658 in Franklin County.

Home Values Rise by Double Digits for Second Year in a Row

The median and the average sales prices of existing homes were 11% higher than a year ago. The average sales price per sqft increased by a full 13.3%.

Most Buyers Pay More Than List Price

Bidding wars are the new norm. During the month of February most buyers paid more than list price for their home.

Sellers are taking advantage of tight market conditions. The average price of new listings was 10.5% higher than a year ago.

First-Time Buyers Struggle to Compete

The supply of starter homes is extremely limited. Only 683 properties are currently listed below $300,000, and only 294 of them are in Franklin County.

This supply shortage makes it extremely difficult for first-time buyers to become homeowners. Most of them can’t compete against cash buyers who often pay 15% more than list price.

Cash buyers now account for 21% of all transactions.

Mortgage Interest Rates Spike

Last week, the Fed approved a 0.25% interest rate hike. This does not seem like a lot. However, it had a major impact on mortgage rates.

The interest rate for ​a 30-year conventional mortgage shot up to 4.75%. That’s a full percentage point higher than a few weeks ago.

We expect interest rates to keep rising even higher. This may put a lid on double digit price hikes despite of strong buyer demand.

If you want to cash in on the equity in your home, don’t delay! 

Call or text me today at (614) 975-9650!

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Housing Stats for February 2022

Here’s a summary of home sales data for February 2022 as reported by the Columbus Association of Realtors:

  • Closed Transactions – 1,953 – UP by 1.8%
  • Inventory – 1,745 – UP by 3.3%
  • New Listings – 2,150 – UP by 5.0%
  • Days on Market – 24 – DOWN by 7.7%
  • Average Sales Price – $296,489 – UP by 11.1%
  • Average Price / Sqft – $1​6​​​​​9.84 – UP by 13.3%

Go to Columbus Realtors to see the full report.

Are You Planning on Buying or Selling in 2022?

Call or Text me NOW at (614) 975-9650!