The Central Ohio Housing Market Remains Strong
While some housing markets are experiencing price declines, home prices in Central Ohio continue to rise.
Columbus, Ohio, was ranked 14th by Realtor.com® in its Top-100 Housing Forecast for 2023, based on several critical factors such as affordability at the median income level, combined sales, and price change year-over-year.
Overheated metro areas such as Boise, Idaho and Austin, Texas have seen a 4% and 3% decrease, respectively, in home values over the last six months. In Columbus, growth in home values has slowed, but the market still saw a 6.2% increase in that timeframe, according to the Zillow data.
What’s different about the Columbus market? In part a shortage of homes and an incredibly strong local economy that continues to grow and support a healthy housing market.
That said, rising mortgage rates and the lingering issue of tight inventories of homes being marketed for sale are contributing to a slower level of activity across the Ohio housing marketplace in November.
Average Sales Price Continues to Rise, But at a Slower, More Sustainable Pace
Home prices in Central Ohio have of course been on the rise for the last several years (due in great part to low mortgage interest rates, combined with increased demand and reduced supply) and in November they continued their ascent, in spite of rising mortgage interest rates.
The average sales price rose 7.9% year-over-year. In November the average home sold for $319,231. That’s an increase of nearly $23,508 year over year.
The average sales price in November was down from October by 2.6% however, this is typical as fewer luxury homes are sold in November which drags down the average sales price.
Appraisals can fall short of the higher contract price and 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.
Inventory Levels on the Rise
The month of November saw 2,202 closed sales and a nearly equal number of new listings on the market.
In comparison to last November’s record-breaking number of 3,018 homes sold in the month, there was a 27% drop, but the context behind the numbers is what is essential.
In November of 2021, the market was sizzling thanks to low interest rate, limited inventory and record-breaking demand.
Today home buyers have more inventory to choose from as inventory is up 24.5% compared to November 2021 this as mortgage interest rates continue to rise pricing some buyers out of the market (the average rate on a 30-year fixed mortgage on November 30, 2022, in Columbus, Ohio, was 6.4 percent).
Our local inventory currently sits at 3,469 homes for sale. Last month, the region had slightly more homes for sale at 3,772, and there were 2,011 new listings in November of 2022.
We are noticing an uptick in inventory in the area, which is a good thing for home buyers. We currently have 1.3 months of unsold inventory supply in Columbus, which historically is very low. Nationally, that number sits at 3.1 months per the latest numbers from the National Association of Realtors.
Buyers Continue to Pay Above Ask
That said, home buyers are still facing a competitive market for the house of their choice and while more inventory is great, buyers are more eager than ever to get a home into contract and lock a mortgage interest rate before they rise further. Homes that are well prepared for market are still receiving multiple offers and thus buyers still need to submit strong offers to beat out what can be half a dozen others.
While buyers continue to pay above ask in many of our local markets, in total the average sales price to the last list price came in at 97.0% this November, down from 101.3% in November of 2021. On average homes sold .3% below their asking price in November however, this is an average and in most Central Ohio markets desirable homes continue to sell above ask. In the current market, buyers are still paying appraisal gap coverage to secure a property but not to the degree that they were earlier in the year.
What Buyer’s Want
Today’s buyers don’t want to do a lot of work. They want turnkey, move-in ready, Instagram worthy homes offering features and finishes that are on trend. These are the homes that sell fastest and for the most money.
Unfortunately sellers often haven’t redone the home in a decade or more. Maybe it has outdated brown carpeting, wallpaper on the walls, or an enclosed kitchen with drop ceiling with fluorescent lighting, the sorts of finishes that are likely to turn off home shoppers as they click through online listings.
Sellers may understand this but be at a loss on what changes will pay off, maximizing the home’s chance of selling quickly and for the most money, as well as how to pay for the updates.
Thanks to a new service, sellers have a unique opportunity to maximize profit on the sale of their home through pre-sale renovations. Improvio to help renovate first, sell for more and pay at closing.
Improvio provides turnkey repairs and renovations for homeowners who want to sell their homes for the highest price possible, and defers payment until your home is sold.
Whether it’s replacing carpet, a fresh coat of paint, and other minor cosmetic repairs, or replacing a roof, and a complete kitchen and master bath remodel, they can help.
Improvio makes pre-sale home improvements possible for every seller, and transforms houses into the listings buyers love. Improvio helps homeowners maximize the return on their most valuable investment… their home!
Homes Continue to Sell Quickly
Homes sold in an average of 24 days which is up from 17 days one year ago.
The time it takes a home to sell is based on several factors including location, condition, and price. While homes may be on the market a bit longer on average this November, homes that are in hot zip codes and turnkey are going faster and typically within 2-4 days of hitting the market.
Home buyers are not hesitating in New Albany, Blacklick and Gahanna. Homes were barely on the market for a week in those three communities which are close to where the new Intel fabrication campus is being built. It will employ around 3,000 people once it opens in 2025.
Three communities saw tough competition for houses in November. Homes in Grandview Heights sold within 11 days on average, this versus 58 days last November. Alternatively, homes in German Village are now taking 36 days to sell on average, versus just 14 days last year.
November 2022 Home Stats
- Closed Transactions – 2,202 – DOWN 13.9%
- Pending Contracts – 2,141 – DOWN 21.9%
- Inventory for Sale – 3,772 – DOWN 8.7%
- New Listings – 2,011 – DOWN 39.4%
- Days on Market – 24 – UP 14.3%
- Average Sales Price – $319,231 – DOWN 2.6%
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!
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
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