Housing Market Update
Continued low inventory combined with rising interest rates is taking its toll on the local housing market!
In 2021 buyers purchased 83.2% of available homes. So far in 2022, inventory is 11.6% higher than last spring because buyers are now only purchasing 80% of the homes available.
Interest rates on a 30-year fixed rate have already increased around 2% from last year, rising from just over 3% to just over 5% which is the highest it’s been since 2009.
“Even though we have more homes for sale today than a year ago, rising interest rates are preventing some buyers from making a move right now,” said Sue Van Woerkom, 2022 president of Columbus REALTORS®.
“For every one percent increase in interest rates, your buying power decreases by about 10-11 percent. And this is especially challenging for first-time home buyers.”
Despite a slowing down in the market, sales prices continue to increase.
Over the last four months, the median sales price in central Ohio was $270,419, a 12.7% increase from 2021.
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.
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.For a detailed report on your neighborhood, contact The Alfriend Group today at (614) 395-1776 or email us at email@example.com.