Housing Market Update
We are nearing summer and as temperatures continue to rise, so are the local home sale prices!
We continue to face an increase in demand and a reduced supply leading to higher and higher home sale prices. In April, the average sale price for Central Ohio homes increased to $291,900, a gain of 16.6% from this time last year which is the highest on record for any single month.
Homes also continue to sell in record time. Despite the increases in price, on average, homes sold in 16 days last month.
There is not only less inventory in the existing home market; but, many local builders are having problems obtaining the necessary lumber and other materials to continue new construction communities in the area. Some builders are even on a building freeze, whereby they are not committing to any new contracts until they can finish the homes they have already started.
According to the Building Industry Association of Central Ohio, the average cost of a new home in April was $378,850. Applying the same formula suggests that our local builders are dealing with roughly $90,000 in regulatory expenses per home.
The primary cause for our housing shortage is local opposition to new development.
“As we’re experiencing unprecedented demand for housing in central Ohio, we need to be diligent in working together to reduce the regulatory burdens on our builders,” added Jones.
“Given that each new home built adds 2.9 jobs and $130k in tax revenue, it is in our best interest to do so.”
We did see a slight increase in inventory last month with 1,939 homes on the market; and, due to higher demand, home sales increased by 23.1% from last year and by 12.5% from March of this year.
New listings are now up 3.1%, year to date, from the first four months of 2020, and overall sales up by 8%.
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, and widespread vaccinations are helping both buyers and sellers safely relocate.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 info@alfriendgroup.com.
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