Market Update: Home Prices Spike, Inventory Plummets, Sales Jump Higher than in 2019

by | Nov 23, 2020 | Covid, Market Updates

Sales of existing homes saw a spectacular gain despite of plummeting inventories and rapidly rising prices.

​Nationwide, October sales increased year-over-year by 26.6%.

How the Columbus Housing Market Compares

Home sales are on track to surpass 2019 by at least 3%. The surge in sales has offset any losses caused by the pandemic this spring.

​What’s unusual this year is that sales did not seasonally decline in September and October, as in previous years.

​Home Sales were up by 19.4% year-over-year in October.

Home Values Spike

A combination of high buyer demand, rock bottom inventories, and exceptionally low interest rates continues to fuel a spike in home values.

The average sales price has increased by 15.2% year-over-year.

The inventory of active listings has dropped to 2,397. This means 54.4% fewer homes are currently on the market than in October 2019.

Here are the numbers (compared to the same month a year ago):

  • Closed Transactions – 3,234 – UP by 19.4%
  • Inventory for Sale – 2,397 – DOWN by 54.4%
  • New Listings – 3,395 – UP by 3.3%
  • Days on Market – 19 – DOWN by 38.4%
  • Average Sales Price – $276,072 – UP by 15.2%

Download the full report at October 2020 Housing Data.

Housing Market Predictions for 2021

You are probably wondering if this booming housing market is sustainable?

The chief economist of the National Association of Realtors, Lawrence Yun, predicts that new-home sales will jump 21 percent and existing-home sales will increase at least 9 percent.

There’s good reason to believe that Columbus will exceed the national trend:

  • Local unemployment has dropped to 5% in October.
  • Foreclosures are 80% lower than the 20-year average, despite of Covid.
  • New-home construction has overcome pandemic related restrictions and will substantially increase output next year.
  • Interest rates will remain at around 3% for the time being.
  • 23,000 people have moved to Columbus this year.

Have you delayed selling your home due to Covid?

Now is the time to take action!

Sales will continue to be strong throughout this winter.

Homeowners who sell in January will benefit from less competition compared to the spring madness months of April and May, when most sellers hit the market.

If you have any thoughts of buying or selling, ​Call or Text me NOW at (614) 975-9650.