February Saw Record Highs and Lows for the Central Ohio Housing Market
There were 1,610 central Ohio homes and condos sold in February, up 6.0% from the previous month, up 4.7% rise from one year ago, and a record high for the month.
January home sales also set a record high and sales for the first two months of 2016 have topped the charts.
There were 2,628 central Ohio homes and condos added to the market during the month of February, a 16.9% increase over January and a 9.7% over the previous year.
As far as the real estate market is concerned, Spring isn’t on its way… it’s here. Spring is traditionally when the housing market heats up. But it started early this year and the central Ohio real estate market is incredibly hot right now, with homes selling as quickly as they’re being added to the market.
As the chief economist for Realtor.com recently report: “Given the level of pent-up demand evident in web activity and stated buyer intentions…we should see this spring materialize as the busiest season of sales since 2006.”
Sale prices are at record highs. The average sale price of a home in February was $185,556, up 3.8% from February 2015 and a slight increase (0.5%) over the previous month. The median price in February was $154,700, an increase of 4.5 percent from a year ago.
Price appreciation is being driven largely by tight supply, but also continued population growth, household formation and ultralow mortgage interest rates. Looking ahead we expect to see stable rates of appreciation throughout central Ohio with elevated rates in some of our local communities with the lowest inventories and highest rates of demand.
Inventory continued to shrink in February, with the total inventory of homes for sale in central Ohio coming in at 5,433. This represents a 20% decline from February 2015 and a 6.2% drop from the previous month. Inventory levels have not been this low since before 2000.
The months supply of inventory during February was 2.1, which is 27.6% lower than a year ago, and the lowest on record. The months supply is calculated by taking the amount of inventory divided by average monthly sales over the last 12 months. In other words, if no additional inventory were added to the market, it would take about 2.1 months to sell all of the homes and condos currently for sale in central Ohio.
The lack of inventory continues to be a serious problem here in central Ohio. Buyers are acting fast, wasting no time on homes that strike their fancy.
Hopefully, these price gains will bring more sellers to market and encourage buyers that purchasing a home is a excellent hedge against inflation.
If you’ve entertained the idea of selling your home or condo, the time is now!
As for mortgage interest rates, Fed Chair Janet Yellen recently told the Economic Club of New York that global growth concerns make it important to employ a cautious approach to raising rates. This essentially moves the goalposts. Now, the Fed won’t do a rate hike without seeing global economic stability, along with 2% inflation and low unemployment. Or so they report, for now.
Finally, a major mortgage software company reports that nearly six months after TRID went into effect, the time to close all mortgage loans has finally decreased. It fell from 50 days in January to 46 days in February, the shortest time to close since May 2015.
Current housing report – February 2016
All housing reports
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley 43209 Columbus 43201 43206 43214 43215 Delaware 43015 Dublin 43016 43017 Gahanna 43219 43230 Grandview Heights 43212 Hilliard 43026 Lewis Center 43035 New Albany 43054 Pickerington Powell 43065 Upper Arlington 43220 43221 Westerville 43081 43082 Worthington 43235
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