July saw a 3.9% increase in home sales. It’s mostly due to a sharp rise in condominium sales while single family homes were stagnant.
A lack of new listings kept the inventory at its lowest level ever for the month of July, while home values keep rising.
Trends We Noticed in July
- Condo Sales Jump by 23.4% My best explanation for the significant increase in condo sales is the return of snowbirds from Florida and Arizona. Most of them come to Ohio at the end of April or early May – a good time to start house hunting for a condo.
- Interest Rates Drop Below 4% on some loans. This is the lowest they’ve been all year. Interest rates are now half a percent lower than a year ago resulting in higher affordability even with rising home values. Lower interest rates also lead to a refinancing boom. You may experience delays in loan approvals and closings due to a shortage of appraisers and underwriters.
- New Listings are Down in the Suburbs. The most popular school districts in the suburbs saw a substantial drop in new listings during the month of July:
- Olentangy School District: -8.0% (fewer new listings than July 2018)
- Hilliard School District: -8.9%
- Dublin School District: -10.1%
- Worthington School District: -20.8%
FHA Makes Condo Financing Easier
You may know that many condos do not qualify for FHA financing. Condo developments need certification from HUD so individual buyers can get government secured loans. One of the certification requirements is a low ratio of rental units.
The condominium market is a critical gateway to affordable home ownership. So, FHA decided to make financing condos easier.
They will now consider individual condominiums for financing, even if the overall condominium development is not approved.
The re-certification for condo developments has been extended to three years, instead of the current two. And, FHA changed its owner-occupancy ratio requirements.
July 2019 Housing Stats
Click this link to see detailed July 2019 Housing Data.
Here are the highlights (numbers compared to the same month a year ago):
- Closed Transactions – 3,334 – UP by 3.9%
- Pending Contracts – 3,803 – UP by 2.3%
- Inventory for Sale – 5,009 – DOWN by 3.4%
- New Listings – 3,868 – UP by 0.7%
- Days on Market – 23 – SAME
- Average Sales Price – $251,936 – UP by 5.6%
Call or text me TODAY at (614) 975-9650, and let me help you sell your home without drama!