Housing Market Update
With continued low inventory and interest rates, home sellers are benefiting from record sales prices and minimum days on market!
In January, 1,026 homes sold, up 10.4% from last year; and, sales are expected to increase as we move into the spring months.
The number of new listings was up 19.8% from December 2020; and, although it was down 9.1% from January of last year, it is keeping with trends of new listings in January for the past few years.
“It’s common knowledge that we don’t have enough homes for sale to meet the demand. But it’s not because we have fewer homeowners listing their homes,” said Michael Jones, 2021 President of Columbus REALTORS®. “The number of new listings has remained relatively unchanged for the last decade. However, the demand has increased by more than half.”
Record low interest rates have led to a very large buyer pool, and this combined with the declining inventory has led the average sales price to exceed list prices in five out of the last six months.
“Ten years ago, we were selling just under half of the new inventory. In 2020, we were selling 93 percent! More and more people want to live in central Ohio!”
As a result, homes continue to sell quickly, an average of 25 days in January 2021.
Higher end home sales, which normally slow after a recession showed great resilience in 2020.
- Homes sold between $350,000 and $500,000 accounted for 14 percent of the sales in 2020, up just over 23% from last year.
- 5% of all homes sold in 2020 sold for $500,000 to $700,000, an increase of 28.2%.
- And homes over $700,000, roughly two percent of the total homes sold this year, are showing an increase in market share of 25 percent.
- Listings under $350,000, which made up almost 80% of the sales in 2020, were down 5 percent from last year.
“I think it’s safe to say that we had far more homes available in those higher price segments, which accounts for the rise in sales,” added Jones. “However, the availability of homes affordable to most, is simply in very short supply.”
The consistent appreciation of residential real estate in Central Ohio makes investing in a primary residence and in investment properties a valuable asset to any financial portfolio.
Real estate agents, lenders, inspectors, and title companies are still taking every precaution to maintain safe and sanitary conditions for listing, showing, and closing homes in Central Ohio.So, if you are thinking of listing your home, or want to take advantage of low interest rates and buy or build your dream home, we will help you through these transitions and transactions in the safest ways possible.