It is no secret that Columbus home values have been rising during the past 12 months. A major reason for these value gains is the shrinking inventory of real estate listings. When the supply is down, prices go up.
Muirfield Village
Last week I prepared a CMA for one of my customers in Muirfield Village.
Muirfield Village is a well known golf course community in the North of Dublin Ohio. It was developed by Jack Nicklaus and is home to the annual Memorial Golf Tournament. At the beginning of October the City of Dublin will host the President’s Cup at the Muirfield Village Golf Club.
CMA is short for “comprehensive” market analysis. With a CMA I compare the values of recently sold homes and active real estate listings, to estimate the value of your home.
The results of the Muirfield CMA blew me away. I could not find a single active listing in Muirfield Village.
But I was even more surprised by the sharp increase of contract values of Dublin homes.
A Substantial Surge in Dublin Home Values
During the past 5 months the average Muirfield Village home sold for approximately $115 per sqft. Most homes were larger than 3,000 sqft. We are talking about an average sales price of $342,278.
The average price of real estate listings that went in contract during the past 30 days was $134 per sqft (which resulted in an average contract price of $397,750).
This indicates that the per square foot value of homes surged by 16.5% in a single month.
Most of the recent listings were in contract in less than 2 weeks. The average days on market (DOM) dropped to 18 days, as compared to 54 days over the past 5 months.
Similar Homes – Different Prices
Here are 2 listings that sold just 3 months apart. Both of these homes are of similar size, they have 4 bedrooms and 2/1 bathrooms.
The first home on 5574 Dumfries Ct W sold for $326,500 on November 30, 2012. It’s 3,174 sqft and was on the market for 84 days. Compare this to the house on 5805 Kilbannan Ct. It is 3,244 sqft large and was in contract after just 5 days on the market. Its list price was $365,000.
I would like to clarify that I don’t know the true purchase prices of the homes that went in contract during the past 30 days. Contract prices are not released to the public until a transaction has actually closed. However, all of the homes we compared in Muirfield Village sold for at least 98% of list price. The extremely short time it took to get a qualified offer on recent listings indicates that the sellers received multiple bids on their homes. It is fair to assume that they got their asking price or more.
The Housing Shortage of 2013
If prices continue to surge we will experience an unprecedented real estate bubble this summer.
In other parts of the country experts already report of a serious housing shortage.
Take Phoenix, for instance, a city that was plagued by waves of foreclosures between 2007 and 2011. Investors and equity funds purchased many of these properties in 2012. They even made a reality TV show called Property Wars that shows investors outbidding each other for vacant homes they did not even set foot in.
With the inventory gone, new construction at snails pace, and an exploding population the City of Phoenix is facing an serious shortage of homes and is struggling to catch up with demand.
Although Central Ohio has not seen the extreme ups and downs experienced by Phoenix, Miami or San Francisco, many suburban school districts are facing a shortage of affordable homes, as well. This is great news for sellers, who have been waiting on the sidelines for the market to recover. But it is frustrating for home buyers who have to pay more and settle for whatever is available in this limited market.
Now is the Best Time to List Your House!
If you or someone you know have delayed listing your home, call me immediately at (614) 975-9650. I can help you find the most qualified buyer who pays the highest price for your property!
Do you want to find out What your Home is Really Worth?
Go to www.TrueDublinHomeValues.com for a FREE Home Valuation Report, personally prepared by me.