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Central Ohio home values continue to rise at sustainable levels – December 2014 Market Update

The average sales price of a home in central Ohio year-to-date is $183,252, which is a 5.2 percent increase over 2013 – and nearly three percent higher than November 2005 during the housing boom.
The average sales price during the month of November was $178,819, a 5.1 percent increase over the previous year.

The average price is the total volume divided by the number of homes sold, according to the Columbus REALTORS® Multiple Listing Service (MLS).

“Central Ohio homeowners should be very pleased that sales prices have continued to increase throughout this year,” said Milt Lustnauer, Columbus REALTORS® 2014 President. “Fortunately sales prices have been rising at a conservative pace so we currently have a sustainable market. During the housing boom, prices weren’t sustainable as the result of rising too quickly.”

There were 1,984 homes and condos listed for sale in November 2014, which is just a slight decrease of 2.9 percent from November 2013. This additional inventory brought the total number of homes and condos for sale to 8,332, which trails the previous month by 6.6 percent.

“It’s not unusual for the inventory to take a dip as the temperature does,” said Lustnauer said. “As the result of inventory being down, sales prices have actually been given a boost. However, when inventory is down, sales are down also.”
There were 1,682 central Ohio homes and condos sold in November 2014, which is a 10.9 percent decrease from November 2013. Year- to-date home and condo sales however just trail 2013 by three percent.

Local housing markets continue to remain active, especially the areas in the school districts of  Columbus, Dublin, Grove City, Hilliard, Olentangy and Westerville. These markets saw the most activity during the month of November among new listings, contracts, and closings.

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®) 80 percent of central Ohio REALTORS® describe the current housing market as moderate to strong  and 93 percent expect housing prices to rise over the next year.

Thirty-seven percent of Ohio REALTORS® indicated that home values in their area were higher than pre-recession levels. Sixty-three percent said home values in their area were at or below pre-recession levels.

Homes for sale increasing for central Ohio – September 2014 Market Update

There were 3,035 central Ohio homes and condos listed for sale in September 2014, which is a 6.8 percent jump from September 2013. The additional inventory brought the total number of homes and condos for sale to 9,408, which just trails August 2013 by 2.6 percent, according to Columbus REALTORS® Multiple Listing Service (MLS).

“Traditionally activity starts to slow when kids are back in school and temperatures begin to dip. But last month, we saw more homes listed for sale than we’ve seen in September for the last several years,” Columbus REALTORS® 2014 President Milt Lustnauer said.

“Sellers are getting the message that it’s a terrific time to put their home on the market and sell. This is great news as we still have qualified buyers looking for homes.”

The average sales price of a home in September was $179,306, an increase of 2.5 percent from September 2013, marking the seventh month in a row for record high prices. The average price is the total volume divided by the number of homes sold.

Year to date (January through September 2014), the average sale price of a home in central Ohio is $183,944 – up 5.2 percent from the first nine months of 2013.

There were 2,349 central Ohio homes and condos sold in September 2014, an increase of 1.3 percent from September 2013. However at 20,432, year to date home sales are still trailing 2013 by 4.4 percent.

“Home sales are down because inventory has been down this year,” added Lustnauer. “But with the increase in inventory last month, we’ll likely see a similar increase in sales.”

“This also continues to be a great time to buy a home as there’s more inventory to choose from and interest rates remain at near their lowest this year.”

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®) 89 percent of central Ohio REALTORS® describe the current housing market as moderate to strong and 87 percent expect housing prices to rise over the next year.

Fifty-three percent of central Ohio REALTORS® indicated that the level of interest potential buyers have shown in purchasing their first home has increased. Fifty-nine percent report an increase in multiple offers.

Central Ohio homes sales heat up with temperatures – July 2014 Market Update

There were 2,856 central Ohio homes and condos sold in June 2014, an 11.2 percent increase over the previous month, although down 3.3 percent from June 2013.

With an inventory level of 9,247, the number of homes on the market is 5.5 percent higher than May 2014, according to the Columbus REALTORS® Multiple Listing Service (MLS).

“The number of homes sold this past month is a true reflection that buyers are hungry for new inventory, which just continues to climb month after month in central Ohio,” said Milt Lustnauer, 2014 president of Columbus REALTORS®. “Buyer interest is still incredibly high right now, making it a terrific time to put your home on the market.”

There were 3,903 central Ohio homes and condos listed for sale in June 2014, which is down .1 percent from the previous month and also down 1.2 percent from June 2013.

The average sales price of a home was $201,285, which is up 9.1 percent from May, and up 2.6 from June 2013.

“Sales prices of central Ohio homes continue to increase, which has been the trend since the beginning of the year,” Lustnauer said. “House prices are still reasonable and affordable, but will likely continue to rise throughout the rest of the year.”

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®) 100 percent of central Ohio REALTORS® describe the current housing market as moderate to strong and expect it to remain so over the next six months. Ninety percent of central Ohio REALTORS® also expect housing prices to rise over the course of the next year.

Given current market conditions, 50 percent REALTORS® say that the difficulty in securing financing remains the same, 18 percent say it’s somewhat more difficult and 29 percent say it’s somewhat easier.

 

Demand for homes high in central Ohio – May 2014 Market Update

There were 3,935 central Ohio homes and condos listed for sale in May 2014, 7.1 percent lower than the previous year, but up 6.2 percent from April.

With an inventory level of 8,766, the number of homes on the market is 12.9 percent lower than May 2013 according to the Columbus REALTORS® Multiple Listing System (MLS).

“We’re averaging over 125 homes listed for sale daily, but the demand continues to outpace the supply,” said Milt Lustnauer, 2014 president of Columbus REALTORS®. “Home sales continue to rise as we move into summer, so it’s a great time to sell your home with buyer interest so high right now.”

There were 2,569 central Ohio homes and condos sold in May 2014, up 17 percent from the 2195 homes sold the previous month

The average sale price was $184,474, which was up 4.9 percent than last year and up 4.7 percent from April.

“Sales prices in central Ohio continue to climb, as they have since the beginning of the year,” Lustnauer said. “Unlike during the housing boom, home price increases are reasonable and sustainable so we anticipate prices continuing to rise at this type of pace throughout the year.”

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®) 100 percent of central Ohio REALTORS® describe the current housing market as moderate to strong and expect it to remain so over the next six months. Ninety-four percent of central Ohio REALTORS® also expect housing prices to rise over the course of the next year.

Given current market conditions, 39 percent of sellers in central Ohio are becoming more realistic when anticipating the value of their home to put on the market. But 42 percent seem less realistic about the value of their home.

Area Market Reports

Prices up; inventory low – Market Update April 2014

The median sale price of a home in April 2014 was $151,900 which was 10.3 percent higher than the previous year and also up 10.3 percent from the previous month. The average sale price was $176,801, which was up 8.1 percent than last year and up 2.8 percent from March.

 The average price is the total volume divided by the number of homes sold. The median is the midpoint — half the homes sell for less, while half sell for more.

 “Sales prices have consistently been up for the last few months, fortunately for sellers,” said Milt Lustnauer, 2014 president of Columbus REALTORS®. “If you’re considering listing your home, right now is a great time to do it. There are still more buyers than sellers in the central Ohio market and sales prices continue to increase.”

 There were 2,127 central Ohio homes sold in April of 2014, 15.2 percent lower than April 2013, but up 18.4 percent from the previous month.

 There were 3,697 central Ohio homes and condos listed for sale in April 2014. Although down 7.4 percent from inventory one year ago, this is up 7.8 percent from the 3,428 added the previous month according to the Columbus REALTORS® Multiple Listing System (MLS).

 With an inventory level of 8,279, the number of homes on the market is 16.7 percent lower than April 2013.

 “Inventory in central Ohio is unfortunately still below what we expected it to be, particularly since there are a significant number of motivated buyers,” Lustnauer said. “However, as temperatures rise, the number of homes coming on the market are  increasing as well.”

 According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®) 95 percent of central Ohio REALTORS® describe the current housing market as moderate to strong 95 percent expect home prices to increase over the next year.

 Although mortgage interest rates have risen slightly and are expected to continue increasing throughout the year, 39 percent of respondents think that home sales will increase regardless of higher interest rates.

 Additionally, 34 percent are seeing higher than normal early spring activity.

Area Market Reports

Home inventory rising with the temperatures – March 2014 Market Update

There were 3,428 central Ohio homes and condos listed for sale in March 2014. Although down 2.1 percent from inventory one year ago, this is up 48.3 percent from the 2,310 added the previous month according to the Columbus REALTORS® Multiple Listing System (MLS).

“After one of the coldest winters on record, many sellers were waiting to put their home on the market,” said Milt Lustnauer, 2014 president of the Columbus REALTORS®. “It’s a great time to sell a home due to the lack of inventory available.”

“But it’s also a great time to buy a home as interest rates are likely going to increase. Buyers can undoubtedly get more home for their money today than they will be able to tomorrow.”

The sale price of a home sold in March 2014 was $172,019, which was 6.6 percent higher than the previous year. The median sale price of $143,500 was up 6.3 percent compared to March 2013.

There were 1,796 central Ohio homes sold in March of 2014, 10.5 percent lower than March 2013, but up over 24 percent from the previous month.

With an inventory level of 8,066, the number of homes on the market is 13.9 percent lower than March 2013.

“Inventory levels are still lagging in central Ohio, much to the chagrin of a significant number of motivated buyers right now,” said Lustnauer. “With temperatures on the rise, we expect inventory to continue in that direction as well in the coming months.”

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®) 95 percent of central Ohio REALTORS® describe the current housing market as moderate to strong and 98 percent expect the market to be moderate to strong over the next six months. As for housing prices, 95 percent expect housing prices to rise over the next year. Additionally, since the weather has started to improve, 34 percent of respondents have seen higher than normal early spring activity.

Area Market Reports

Low inventory and frigid temperatures kept February home sales flat – February 2014 Market Update

February home sales were only slightly off pace from the same time last year, when home sales saw their highest numbers since the boom. There were 1,444 central Ohio homes sold in February of 2014, 6.2% lower than February 2013 (1,539), according to the Columbus REALTORS® Multiple Listing System (MLS).

“Inventory is still down in central Ohio, which is hindering the potential of our already strong housing market,” said Milt Lustnauer, 2014 president of the Columbus REALTORS®. “Given the low inventory and abysmal weather, we’re only a few steps behind what turned out to be a record breaking year, last year.”

The sale price of a home sold in February 2014 was $164,595, which was 9.2 percent higher than last year. The median sale price of $135,000 was up 10.4 percent compared to February 2013.

The average price is the total volume divided by the number of homes sold. The median is the midpoint — half the homes sell for less, while half sell for more.

At an inventory level of 8,066, the number of homes on the market is 10.7 percent lower than February 2013. However there were 2,310 homes listed for sale in February, up slightly from the 2,120 added the previous month.

“Many sellers were waiting out one of the worst winters on record,” added Lustnauer. “Now that the weather is warming up, we hope to see inventory levels jump back up.”

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®), 87 percent of central Ohio REALTORS® describe the current housing market as moderate to strong  and 95 percent expect the market to be moderate to strong over the next six months. As for housing prices, 96 percent expect home prices to rise over the next year.

Area Market Reports

Home sales cooled in January – January 2014 Market Update

A combination of frigid temperatures and low inventory resulted in fewer central Ohio home sales in January. The 1,337 sales last month was 8.3 percent lower than January 2013 (1,458) according to the Columbus REALTORS® Multiple Listing System (MLS).

“Looks like the historically adverse winter weather conditions have placed a temporary freeze on home sales as compared to last January,” said Milt Lustnauer, 2014 president of Columbus REALTORS®. “Given the demand, this may create a potential back log of home sales this spring.”

The sale price of a home sold in January 2014 was $159,452 which was 7.8 percent higher than last year. The median sale price of $128,000 was up 6.7 percent compared to January 2013.

The average price is the total volume divided by the number of homes sold. The median is the midpoint — half the homes sell for less, while half sell for more.

Inventory for the last two months has resembled levels last seen in winter of 2000. At 8,284, the number of homes on the market is 7.3 percent lower than last January. Not only has this affected sales, the lack of supply has resulted in a 51 percent drop in pending sales.

That said, 2,175 homes and condos were listed for sale during January, 16.7 percent lower than last year, but an increase of 49 percent from the previous month.

“All the signs of a robust spring are here,” adds Lustnauer. “Interest rates are still hovering under 4.5 percent, consumer confidence is improving, and inventory is increasing.”

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®), 97 percent of central Ohio REALTORS® describe the current housing market as moderate to strong and 84 percent expect home prices to rise over the next year. Additionally 50 percent are seeing a slight increase in the level of interest renters are expressing toward buying.

2013 Central Ohio home sales second highest on record – Market Update December 2013

(Jan. 23, 2014 Columbus, OH) – The second-highest sales year on record ended with the strongest December since the housing boom in central Ohio. December home sales came in at 1,735, 2.5 percent higher than December 2012 and the most sales on record since the peak of the boom in 2005 (1,829) according to the Columbus REALTORS® Multiple Listing System (MLS).

In total, there were 27,033 closed sales in 2013 which was 17.1 percent more than 2012 (23,082).

The sale price of a home in 2013 was $174,336, an increase of 4.2 percent over 2012. The average sale price of a home in December was $176, 217, 11.6 percent higher than December 2012.

“2013 has been an amazing year for real estate in central Ohio,” says Milt Lustnauer, 2014 president of Columbus REALTORS®. “These December numbers are not surprising. Real estate isn’t a seasonal game anymore, today’s buyer is ready to act rain, shine – or snow.”

The inventory of homes at the end of the year was down to 8,732, the lowest for the month of December since 2000. As such, 2013 closed with a months supply of 3.9 percent, the lowest on record for central Ohio.

The months supply is defined as the number of properties for sale divided by the average number of monthly sales for the last twelve months.

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®), 94 percent of central Ohio REALTORS® describe the current housing market as moderate to strong and 95 percent expect the housing market to be moderate to strong over the next six months. As for home prices, 89 percent expect home prices to rise over the next year.

“Inventory levels are down, which is driving up the sales price,” says Lustnauer. “If sellers are thinking about waiting until the spring to list, I would suggest otherwise. With interest rates still low, buyers can still get a great rate while the seller can get a good price for the home.”

Area Market Reports

Home prices continue to rise in central Ohio – November Market Update

(Dec. 19, 2013 Columbus, OH) – The sale price of a home in central Ohio year to date (January through November) stands at $174,130 which is 3.7 percent higher than homes sold during the same period of 2012. The average sale price of a home during the month of November was $169,655, an increase of 2.8 percent over sale prices one year ago according to the Columbus REALTORS® Multiple Listing System (MLS).

November home sales came in at 1,812 which were 10.3 percent behind sales in November of 2012. Even so, sales for the year (January through November) are up to 25,191 – 17.8 percent higher than 2012.

“It just so happens that home sales last year marked a record for the month of November,”” said Chris Pedon, 2013 president of Columbus REALTORS®. “Given our lower inventory levels, it’s not surprising sales took a bit of a hit last month.”

The number of homes and condos for sale in the Columbus region is just over 9,600, almost five percent lower than inventory levels a year ago.

“Inventory levels usually drop off during the holiday season,” adds Pedon. “But we haven’t seen inventory levels this low since 2002 so competition is fierce. As we still have buyers looking to make a commitment by the end of the year, and I’d advise any homeowner looking for an advantage to consider the market today.”

Area Market Reports