Central Ohio Home Sales Continue to Dramatically Outpace Prior Years
There were 3,091 central Ohio homes and condos sold during the month of May, a 15.7% jump over April and a 2.4% increase over May 2015. Year-to-date sales (January through May) were 11,464 which is the highest on record for the first five months of the year according to the Columbus REALTORS® Multiple Listing Service.
Most of the residential sales growth in May can be attributed to single family homes, while condo sales remained flat. That number may change drastically by this time next year as new condo projects have been proposed or are under construction in Grandview Heights, the Short North, Italian Village, Upper Arlington, the Arena District and beyond.
Sales prices continued their upward trend reaching record highs once again. The average sales price of a home in May was $211,974, a 6.3% increase from the previous year and a 4.7% increase over April. The median price in May was $177,900, a 5.3% increase from a year ago.
During the month of May, homes spent an average of just 44 days on the market, which is 8 days shorter than April and 10 days shorter than May 2015. Columbus remains one of the top 20 real estate markets in the country ranking number 10 in May.
Homes are selling quickly this spring and the challenge continues to be the lack of inventory and homes for sale. In spite of prices being up significantly, current inventory levels are less than 40% of our average over the last decade.
Although the number of homes and condos for sale in central Ohio rose 4.2% last month (to 5,588), this is still down 25.3% from May 2015.
There were 3,844 central Ohio homes and condos added to the market during the month of May, down 3.8% from the same month a year ago and down 1.7% from April.
The months supply of inventory last month remained low at 2.1 meaning, if no more homes were added to the market, it would take just a little more than 2 months to sell all of the homes and condos currently for sale in central Ohio. A balanced market is usually around 6.5 months supply.
“The residential real estate market is showing no signs of slowing down as the summer begins,” Jonathan Smoke, chief economist of Realtor.com. “Pent-up demand and the lowest mortgage rates we’ve seen in three years are continuing to move inventory at the fastest pace we’ve seen so far this recovery. Prices continue to rise at an above average rate, but the lower mortgage rates are offsetting much of the effect of higher prices. While we are seeing a substantial amount of new listings come onto the market, it’s not enough to satisfy demand as we continue to repeat the pattern of the last 22 months of having fewer homes for sale than we had the prior year.”
Demand for housing, coupled with a lack of choices for buyers, continues to drive home values. This is a narrative we have heard for quite some time. Many owners aren’t moving on from their current homes (many out of concern for finding a home to purchase and timing their transactions – If you are one of these owners call us today to learn how we can assist you in locating a home to buyer before you sell, and possibly a buyer in place to purchase your home once we’ve identified your new home!), which is holding back available inventory for both first-time and move-up buyers. With values on the rise, this could prove to be an ideal time to sell – especially in some of Central Ohio’s hottest markets where owners could get more than they expected.
With inventory low and prices high, it’s an exceptional time to list and sell your Ohio home. While mortgage interest rates remain low, the Fed is expected to raise rates in June, and again in December and buyers have a brief window of time to locate a home and lock in these historically low mortgage rates. Despite rising home prices, the cost of a home remains near historic lows due to these once in a lifetime interest rates.
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