Buyer demand outpacing supply
During the month of June, there were 322 more homes and condominiums listed for sale compared to May. The jump from 3,232 to 3,554 new listings generated increased interest and foot traffic from buyers actively seeking to purchase a home in central Ohio.
Both buyers and sellers took a step back during the COVID-19 shutdown, but buyers have been more eager to re-enter the market. Record low-interest rates, the threat of another wave of the virus this fall, more time spent at home, and the forthcoming inflation in response to government relief programs have added even greater incentive for buyers to make a move.
Home prices rose during the lockdown and are likely to rise even further due to heavy buyer competition and a significant shortage of supply.
June saw 4,158 homes put in contract, which was a significant increase of 17 percent from May and 7.4 percent from June of 2019.
Nationally, existing home sales increased at a record pace in June, as completed transactions for all property types increased 20.7 percent to a seasonally adjusted rate of 4.72 million.
Locally the 3,151 central Ohio homes and condos sold during the month of June were almost 24 percent higher than the previous month, but down 2.3 percent from 2019 according to the Columbus REALTORS® Multiple Listing Service.
Even with the increase in new listings, the increase in home sales and those put in contract left inventory at 2,948 which was 8.1 percent lower than the previous month and 38.4 percent lower than the same time last year.
Unsold inventory is at a 1.1 months supply which means that, if no more inventory were added to the market, it would take just over one month to sell all listed homes based on the current sales pace. This is the lowest in the history of central Ohio housing activity.
Central Ohio homes sold for an average of $272,020 during the month of June which was 4.1 percent ahead of 2019. The median sales price was $241,000, up 5.7 percent from last year.
The median sale price of a home in central Ohio sold during the first half of 2020 was $222,000, up 5.8 percent from one year ago. The average sale price was $252,715, up 4.89 percent from the first six months of 2019.
During the month of June, homes under $350,000 sold in an average of 23 days. Homes sold between $350,000 and $500,000 took about 33 days to sell. Homes sold between $500,000 and $700,000 sold in an average of 56 days and homes over $700,000 took an average of 76 days to sell.
Nationally, the median sales price was $295,300 in June, up 3.5 percent YoY, and prices increased across every region. Unsold inventory is currently at 4.0-months supply, down from 4.8 in May and 4.3 in June 2019. Days on market was at 24 for June, down from 26 days in May and 27 days in June 2019.
First-time buyers were responsible for 35% of sales in June, which is up from 34% in May 2020 and equal to June 2019’s 35%.
NAR’s 2019 Profile of Home Buyers and Sellers revealed that the annual share of first-time buyers was 33%.
Finally, with more people working from home this year, we’re seeing a slight shift in the types of homes buyers are seeking. Many are looking for larger homes, reversing the trend to smaller homes seen in recent years, more home office workspace, and floor plans that aren’t quite as open. Others are not as concerned about the commute as they continue to work from home.”
If you, or someone you know is considering Buying or Selling an Investment Property 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