Housing Market Update
Spring is here, and although more homes are on the market, demand still far exceeds supply, continuing to drive prices up and days on market down!
We are starting to see more homes hit the market now that warmer temperatures are upon us, but last month there were 17% fewer listings than February 2020; and, despite the limited supply of inventory, the buyer pool continues to increase.
Furthermore, both sales and in-contract listings were down from this time last year. Closed transactions were down 3% while in-contract listings were down by 12%.
February 2020 ended with only 1,689 active listings, down 48.1% from last year. There were 5,400 homes for sale five years ago, and 15,500 homes on the market this time 10 years ago.
According to the BIA of Central Ohio, local builders obtained 11,864 housing permits last year, up 46% from 2019, and we are already seeing a continued increase in new construction permits this year.
However, even with an increase in new builds, inventory still remains far too low to meet the continued increases in demand.
“We’ve never seen inventory this low before,” said Michael Jones, 2021 Columbus REALTORS® President. “As a result, housing is moving at a frenzied pace and we’re seeing multiple offers and offers over asking price.”
“Buyers interested in winning the bid need to be prepared and move quickly.”
In February, the average home sale price was $266,893, a 13.4% increase from last year; and, the average days on market was only 26 days. Also, many homes are selling for over asking price. The homes that did sell for asking price sold for an average of 5% more.
“Many homeowners have been reluctant to open their homes for showing due to concerns about the pandemic,” added Jones. “We expect to see an increase in sellers entering the market this spring as more and more people get vaccinated.”
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.