Housing Market Update
It’s a new year, so why not start fresh with a brand new home? Last year, the strength of the overall economy fueled the real estate market. With lower unemployment rates, higher wages, and a reduction in mortgage rates, more and more buyers flooded the market.
“With a strong economy and low mortgage rates, buyer activity has been strong,” said Andy Mills, Columbus REALTORS® 2020 President.” However, central Ohio has been constrained by inventory levels that are still below historical norms. With supply and demand continuing to favor sellers, prices have been rising steadily.”
The number of homes available for sale in 2019 was 6.2% lower than in 2018. This decline in supply led Central Ohio home sales prices to increase in order to meet the demand. The overall median sales price in 2019 was $209,900, a 7.6% increase from 2018.
In 2019, homes continued to sell in record time with homes under $350,000 selling, on average, in 27 days. Since the housing market remained so strong, foreclosure sales decreased by 28.6%.
Although the housing market remains healthy nationwide, election years can slow things down temporarily, so there could be a slight lull in activity toward the second half of the year.
The last ten years provided the longest period of continued growth for the Central Ohio housing market, but hot economies eventually cool, and lead to a more balanced market.
So, buyers should take advantage of the current low mortgage rates while sellers should take advantage of the reduced competition and record sales prices!