Homes are still selling quickly in central Ohio
Homes spent an average of 27 days on the market during the month of August, which is one day less than July and eight days fewer than August 2016. This is yet another record low for central Ohio, according to the Columbus REALTORS® Multiple Listing Service (MLS).
Homes that are properly prepared for market, effectively priced, and well marketed have been selling in less than a month this summer. This is the fastest they’ve ever sold as buyers are wasting no time seizing an opportunity to purchase a home.
There were 3,248 central Ohio homes and condos sold during the month of August, which is a 5.6% increase over July, but less than one percent higher than a year ago. However, the homes sold year to date (21, 623) is sitting at a record high for the first eight months of the year, this despite a severe lack of inventory across many price points.
There were 3,740 central Ohio homes and condos listed during the month of August, a 10% increase from a year ago and the highest number of new listings for the month of August since 2008.
Even with the added listings, this left inventory at 5,444, which is just slightly less than the previous month and 13.2% below August 2016.
The average sales price of home during the month of August in central Ohio was $217,800, which is 6.7% more than August of 2016. The median sales price was $185,000, up 6.9% from a year ago.
Year to date (January through August), both the average sales price ($215,650) and median sales price ($182,000) are the highest on record.
While many homeowners are realize now is a great time to sell a home as there’s still a shortage of inventory as demand remains high while mortgage interest rates remain low. We’re hoping the supply increases this fall to meet the pent-up demand.
There is concern over what we refer to as a lack of velocity in the marketplace. People are effectively buying back their houses, by choosing to remodel instead of move. We used to say that people would trade up every seven years, but now that stat would have to be adjusted to nine or maybe 11 years. The population continues to grow all the time, but we’re low in inventory—we’re going the wrong way and it’s putting a great deal of pressure on the builders. Inventory is going to be a problem for the next several years and I’m not sure how we’re going to deal with that.
We aren’t sure whether the current shifts we’re seeing in the housing market are fall-out from the Great Recession, similar to the way our parents were shaped by the Great Depression. We don’t yet fully understand yet how the recession has shaped housing. There is delayed housing formation—millennials have delayed home purchases, delayed having children, and all of this is impacting the first-time homebuyer trend. Are millennials reshaping the way people think about houses? This is yet to be determine but student debt is a key factor reported by over 83% of millennials.
On the flip side, baby boomers are influencing the market in different ways. They’re staying in their homes and aging in place. People are retiring where they live and work.
Ultimately, the onus falls on brokers and agents.
In this fast paced market, it’s critically important that buyers and sellers work with an experienced professional. Not all real estate professionals are created equal. Far to many agents have been licensed in recent years and these newly/recently licensed agents and their insufficient training and experience is impacting this market. We are seeing many buyers overpaying for homes, often due to a lack of experience on the part of their buyer’s agent. I believe that what we do as individuals is a very high calling. We help navigate a very complicated business. As an industry we need to raise the standards. The market will eventually thine the herd but in the mean time consumers need to be cautious and ensure they agent they hire possesses the knowledge and experience to effectively represent them in what for most represents the single largest transaction of their life.
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 Marysville 43040 43041 New Albany 43054 Pickerington 43147 Powell 43065 Upper Arlington 43220 43221 Westerville 43081 43082 Worthington 43235