A few weeks ago, I read an article in Business First stating that Columbus “is not even coming close” to meeting housing needs. They are quoting a report commissioned by the Building Industry Association (BIA) which shows how new construction lacks far behind its peak in 2004.
Read on to see highlights of the report …
Why Builders Can’t Catch Up
With the housing market as hot as it is you would expect that construction companies are building like crazy to catch up with high buyer demand.
That’s not the case. Over the past 12 months only 2,961 new homes sold in the Columbus Metro area, a 10.2% drop from a year ago. That’s approximately half of new home sales during the peak of new construction in 2004.
Who’s to Blame?
Home builders say zoning restrictions, difficulty getting permits, and a severe shortage of qualified construction workers are holding them back.
To make matters worse, building materials have become very expensive. And there’s not enough land to build on – at least not at the current zoning codes which restrict high density developments in most suburbs.
Prices Have Skyrocketed
The median price for a new detached home has increased by 15.5% year-over-year to $323,480 in November. The median closing price for a new attached home (condo) is up by a staggering 29.5% ($309,431) from the same period a year ago.
By comparison, the median sales price of an existing single family is only $181,280. That makes new homes almost twice as expensive as existing homes.
Click this link to download the full report from the BIA website.
How I Can Help You When You Buy or Build a New Home
There are many benefits to new homes. If you can afford the higher price, I certainly recommend you build or buy one.
Call me first, before you talk to a builder! You need an experienced Realtor on your side who can represent your interests. Builders will gladly pay my commission – so it does not cost you a penny.
Here’s how I can help:
Meet with you at the design center and recommend upgrades that will improve the resale value of your home and tell you which upgrades to avoid.
Negotiate discounts and free upgrades on your behalf. In a hot market this has become difficult, but it is still possible.
Refer a home inspector to check out the new home before you close. New construction inspections are critical, as builders can easily miss items. The home inspector will create a final punch out list for your builder to finish before you close.
Find inventory homes or quick move-in homes that are already built. This cuts the time to closing by 4 to 6 months, and you will likely get a better deal.
Where to Find New Construction Homes?
There’s no comprehensive source for new homes in Central Ohio. Many of them are not listed on the MLS.
We created a website to help you locate new single-family developments in Northwest Columbus. It also includes a complete directory of builders.
Here’s the link to our New Construction Homes website – check it out!
Call or text me TODAY at (614) 975-9650, don’t talk to a builder without representation!
Susanne Novak has been a Realtor since 2007. She is the broker and owner of RE/MAX 24/7 in the Dublin Historic District. Susanne typically helps 50-60 families each year with their real estate needs. She's your trusted advisor when you search for your dream home, and a skilled negotiator when she lists your property to get top dollar when you sell.