2021 CENTRAL OHIO HOUSING ACTIVITY BREAKS RECORDS
Fervent buyer demand in central Ohio, driven by pandemic-induced changes to housing needs and preferences, reached extraordinary levels in 2021. This increased competition for homes resulting in multiple offer situations which drove prices significantly higher for the year.
As a result, home prices and sales reached record highs while inventory and market time set record lows.
The number of homes listed for sale last year was almost 11% higher than in 2020. Yet seller activity simply couldn’t rise enough to meet the historic increase in demand.
We actually had more homes listed in 2021 than in any year since 2010, when the country was recovering from the recession and housing crash of 2008, and far too many homeowners were forced to sell their homes, often through a short sale to avoid foreclosure.
Home sales were up 9.1% to end the year at 36,489.
Average Sales Price Continues to Rise
The overall median sales price increased 12.1% to $260,000 for the year. Single Family home prices were up 12.6% compared to last year, and condo prices were up 14.3%.
Sellers received, on average, 102.2% of their list price at sale, up 2.4% from 2020.
Forbearance efforts by the government and lenders continued for much of the year, limiting distressed sales activity once again. In 2021, the percentage of closed sales that were either foreclosure or short sale decreased by 29.2% to finish the year at 1.2% of the market. Strong gains in equity seen by most homeowners in the last few years will have helped to limit the number of distressed sales.
New construction activity, while strong, remains limited by a combination of labor and supply shortages, rising material costs, and a regulatory and operational environment that makes it difficult to scale quickly and increase production.
Buyers Continue to Pay Above Ask
Once again the average sales price exceeded the last list price. On average homes sold .5% above their asking price in December however, there this premium varies significantly across price points and locations. For example homes priced from $350,000 to $500,000 sold on average at full ask but up to 28% above ask. In this market, it is critically important for buyers to work with an experienced buyer’s agent.
Many buyers continue to pay $10,000 or more above list price, with appraisal gap coverage to secure a property. If the bank appraisal falls short of the contract price appraisal gap coverage protects the seller. With appraisal gap coverage, buyers agree to bring cash to closing to cover some portion of the difference between the appraised value and the contract price.
Homes Continue to Sell Quickly
It took an average of 18 days to sell a Central Ohio home in December.
Homes in the $150,000 to $350,000 sold in an average of 13 days. Homes in the $350,000 to $500,000 price range sold in an average of 19 days, homes in the $500,000 to $700,000 range sold in an average of 19 days, homes priced above $7000,000 were on the market for an average of 46 days.
Where Is the Columbus Market Headed in 2022
Looking ahead, Columbus is forecasted to be the 5th hottest housing market in 2022. Central Ohio asking prices and transaction volumes are predicted to be double the national average, with demand for homes remaining elevated due to relative affordability, immigration to the area, as well as the high concentration of millennials and strong job growth.
Realtor.com predicts home sales will surge by 13.7% and prices will grow by 6.3% in 2022 and has ranked Columbus has ranked one of the top 10 housing markets best positioned for growth this year.
Columbus population growth has been robust, it has surged in recent years with the metro area gaining nearly 60 new people per day. Strong population growth is a key market metric used by real estate investors looking to identifying target markets poised to provide above average rates of return (as larger population translates to greater housing demand),. It is equally relevant for home buyers looking to identify opportunities including communities where home price appreciation is likely to local and national averages.
Central Ohio cities that grew the most include:
Dublin 18.1%
Delaware 18.8%
Grove City 16%
Hilliard 30.5%
Westerville 15.7%
Pickerington 26.3%
Powell 23.2%
New Albany 40.1%
Canal Winchester 28.2%
Sunbury 50.7%
Commercial Point 94.6%
December 2021 Housing Stats
Here are the numbers (compared to the same month a year ago):
- Closed Transactions – 2,897 – UP 6.7%
- Pending Contracts – 2,431 – UP 2.0%
- Inventory for Sale – 2,121 – UP 3.5%
- New Listings – 1,890 – UP 3.5%
- Days on Market – 18 – DOWN 18.2%
- Average Sales Price – $291,259 – UP 2.0%
Bottom Line
If you’re interested in selling your Central Ohio home we’d encourage you to give us a call so we can show you the market conditions in your neighborhood and help you to get the most exposure and the most money for your home!
2021 Annual Report
December 2021 Housing Report
All housing report
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please give us a call and we’d be happy to assist you!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley 43209 Columbus 43201 43206 43214 43215 Delaware 43015 Downtown Dublin 43016 43017 Gahanna 43219 43230 Grandview Heights 43212 Galena 43021 Hilliard 43026 Lewis Center 43035 New Albany 43054 Pickerington 43147 Polaris Powell 43065 Upper Arlington 43220 43221 Westerville 43081 43082 Worthington 43235
For more information about the Central Ohio housing market, visit https://blog.jasonopland.com/category/market-reports/.
