Earlier this weeks I read 2 conflicting reports about the growth of the real estate market.
These 2 reports portray completely pictures of the real estate market – one nationwide, the other local.
The first article based on statistics of the National Association of Realtors shows that sales of existing homes increased by 10% nationwide in September 2010. This is a month to month gain, which means it compares September to August 2010.
On the same day a report by the Columbus Board of Realtors painted a drastically different picture for Columbus OH homes for sale. Total sales of Columbus condos and homes fell by 28% in September as compared to a year ago.
What’s going on here?
Are we lagging behind of the rest of the nation or is Columbus the leader? Will the rest of the US experience this dreadful result in a month or two?
Let’s take a closer look!
Although these 2 numbers seem to contradict themselves, in reality, they should not be compared at all. They represent 2 completely different events.
The national gain is month to month. It’s also for existing home sales. This number simply says that 10% more existing homes sold in September 2010 than in August. If you would compare the September 2010 results nationwide to September 2009, you may find that home sales actually decreased – just like in Columbus.
The Columbus real estate “tumble” is reported on an annual basis, i.e. comparing September 2010 to September 2009 and it covers all homes sold. Although this indicates a substantial drop, home sales increased in Central Ohio since the beginning of the year, relative to the same period 2009.
The home buyer tax credit definitely lifted home sales in the first half of 2010. Buyers made their home purchase earlier in the year to take advantage of the tax credit. Naturally, this means that fewer home buyers were left for the second half of 2010, thus a drop in sales.
Over the year these numbers will balance out and we believe that 2010 will actually show an increase in Columbus home sales as compared to the previous year.
Thanks for reading the susannenovak.com Blog!
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Real Estate Agent helping First Time Buyers.