Is the Columbus Real Estate Market a buyers market or a sellers market?
During the housing bubble of the early-to-mid 2000s, the real estate market was considered to be a seller’s market. Property was in high demand and was likely to sell even if it was overpriced or not in the best condition. In many cases, homes would receive multiple offers and the price would be bid up above the seller’s initial asking price. The subsequent housing market crash created a buyer’s market in which sellers had to work much harder to generate interest in their properties. Buyers expected homes to be in excellent condition or priced at a discount and could often secure a purchase agreement for less than the seller’s asking price for the property.
A buyer’s market is one in which there are more sellers and homes for sale than buyers. Since supply is greater than demand, homes will be lower priced, making them more attractive to buyers. In a buyer’s market, sellers may have to accept a lower price than they want to sell their home and may have to resort to staging and incentives. This is the ideal situation for buyers, because they can get a great deal.
In contrast, a seller’s market is one in which there are lots of buyers and relatively few homes for sale, which often leads to multiple offer situations that drive up prices. This means that buyers will have to spend more to get what they want. This is the ideal situation for sellers of well maintained desirable properties, because they get a great price on their homes.
It’s important to remember that even within the same country or the same state, there can be several different markets. So you might run into a situation where you’re both selling your home at an advantage and buying a new home at an advantage, or any combination of the two, depending on where you decide to move to. This is often a factor in people’s relocation decisions.
Buyer’s markets and seller’s markets don’t last forever. It’s hard to predict what the market will do with any accuracy, though, and things change slowly. You might end up waiting months or years for things to change. And when circumstances do change, they may not change in your favor. This is an important factor to consider when you’re deciding when to buy or sell real estate.
A balanced housing market for Columbus and Central Ohio is 6.5 to 7 months supply of inventory.
Nationally there is talk that home sales are up, inventory is scarce and in some markets sellers are receiving multiple offers on their homes. Is this true of homes in the Columbus and Central Ohio Market? Central Ohio currently has an average of 2.2 months of inventory and as such is considered to be a seller’s market. There are a number of markets well below this including: Bexley (1.8), Dublin (2.4), Gahanna (.9), German Village (1.5), Grandview Heights (2.2), New Albany (2.8), Powell (2.5), Upper Arlington (1.1), Westerville (1.0). In markets such as these we are frequently seeing multiple offers on well maintained homes that are appropriately priced.
Depending on where you are searching for a home as a buyer you may find your options are few. Other areas might offer plenty of homes to choose from. Choosing a community and neighborhood is equally important as the home itself.
Homes for sale in the Columbus – Search the Columbus MLS. This link is to the home search on my BHG Real Estate website. You can search all homes currently for sale in central Ohio here.
As a real estate agent with Better Homes and Gardens we specialize in assisting buyers and sellers in Franklin County, Delaware County and Union County
Columbus Board of REALTORS Market Report for February 2016
- Months of homes for sale is 2.2 vs. 2.9 in January 2015
- Homes for sale 5,433 vs. 6,786 in January 2015
The months supply of inventory based on sales is down 24.13% from this time a year ago. Fewer homes for buyers to choose from means less competition and is good news for sellers. The average sales price of a home in Central Ohio was up 3.8% from a year ago while days on market for homes sold was down by 14.3% from a year ago. All good news for sellers!
The good news for buyers, while prices are up in most of our local markets, interest rates are currently near their all time lows making it more affordable than ever to purchase and own a home! Most buyers simply consider the price of a home, however, more important than the price is the cost of the home. What’s the difference you ask? The interest rate one pays determines the cost of owning a home and a small half of a point increase in interest rates can translate to thousands of dollars in additional interest over the course of a 30 year mortgage. So while it’s a good time for sellers to sell a home, there has never been a better time to buy a home!
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