Housing Market Update
With record low interest rates, many segments of the market experienced a multiple-offer frenzy not seen in the last 15 years or more!
Although the first wave of the pandemic caused the housing market to experience a significant slowdown, it bounced back substantially by the end of 2020. However, seller activity lagged drastically behind buyer demand which intensified the ongoing seller’s market.
Home prices continued to increase throughout 2020 and home sales were 33,431, a 4.1% increase from 2019. Single-family home sales increased 4.2% last year while condominium sales were up 3.4%. The overall median sales price increased 10.5% to $232,000 for the year. Single-family home prices were up 10.5% compared to last year, and condo home prices were up 8.3%.
“Although we had very strong demand for entry-level homes, sales were down as we simply didn’t have sufficient inventory in the under $180,000 price point,” said Michael Jones, 2021 Columbus REALTORS® President. “Fewer home sales in this sector and more home sales in the higher price ranges also served to push the overall market sales price. In many cases, the $180,000 home has now become the over $200,000 home.”There were 2,049 active listings at the end of 2020, which was 47.3% less than the previous year. The declining inventory combined with a large buyer pool, led the average sales price to exceed list prices in five of the last six months.
Looking further into 2021, buyer demand is expected to remain strong with inventory remaining tight which will continue to invite multiple offers and a continued increase in prices.
“As more people are working from home, the need for more space or a different type of space has noticeably increased,” added Jones.
“If you’re uncertain about listing your home, consider this: record low-interest rates will enable you to afford more home. And if limited options are discouraging, new construction is an excellent option as there are so many new developments which can offer space that meets your needs.”
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.
With the recent increases in COVID-19 cases, 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.