Housing inventory drops further in February
There were 2,528 central Ohio homes and condos added to the market in February, which is a 16.5% increase over January, although a 3.6% dip from February last year. This leaves inventory at 4,286, which is a whopping 21.1% decrease from the same month last year according to the Columbus REALTORS® Multiple Listing Service.
If you thought inventory couldn’t possibly get any lower, it definitely did. However, spring is just around the corner and this is traditionally the time of year we start to see listing activity increase and more homes begin to hit the market.
There were 1,678 central Ohio homes and condos sold during the month of February, a 5.3% increase from January and a .5% rise over the same month a year ago.
Central Ohio saw 2,754 homes enter into contract during the month of February, up 11.4% from the previous month although down 9% from February 2016. A pending sale or a sale “in contract” is when the buyer and seller agree on terms of the sale of a home and have a signed purchase and sale agreement, but have yet to close.
The average sales price of a home in February was $190,659, up 3.4% from last year. The median sales price was $161,900 represents a 5.1% increase over February 2016.
With lean for-sale inventories and low rental vacancy rates, many markets have seen housing prices outpace inflation. “Over the 12 months through January of this year, the CoreLogic Home Price Index recorded a 6.9% rise in home prices nationally and the CoreLogic Single-Family Rental Index was up 2.7 percent—both rising faster than inflation.”
Accounting for limited available inventory, CoreLogic’s HPI Forecast expects home prices to rise 0.1 percent month-over-month from January to February, and 4.8 percent year-over-year from January 2017 to January 2018.
“Home prices continue to climb across the nation, and the spring home-buying season is shaping up to be one of the strongest in recent memory,” says Frank Martell, president and CEO of CoreLogic. “A potent mix of progressive economic recovery, demographics, tight housing stocks and continued low mortgage rates are expected to support this robust market outlook for the foreseeable future. We expect the CoreLogic [HPI] to rise 4.8% nationally over the next 12 months, buoyed by lack of supply and continued high demand.”
The upside down or under water properties and remnants of the Great Housing Recession are fewer and fewer with each passing month as values continue to climb and mortgage balances continue to be paid down further. If you wanted to sell in years past and were previously upside down in your home and want to know if this market has changed your circumstance, give us a call or send us an inquiry to determine your home’s current market value.
During the month of February, central Ohio homes and condos spent an average of 52 days on the market, this is eight days fewer than a year ago and just two days longer than January.
Seventy-five percent of central Ohio REALTORS® said they’re noticing a slight to substantial increase in the number of millennials expressing interest in purchasing a home, according to the latest Housing Market Confidence Index by the Ohio Association of REALTORS
When asked specifically about the low number of entry level homes available for sale, 33% said it’s a slight hindrance and over half (54%) said the low inventory is substantially hindering the millennials’ ability to purchase a home.
Millennials are a large segment of the population and, if they don’t have an adequate selection of affordable housing to choose from, that’s definitely a problem we need to focus on solving.
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!
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