Housing Market Update
Continued low inventory and fervent buyer demand led to record sales prices again in 2021!
Pandemic-induced changes to housing needs and preferences is still highly impacting the Central Ohio real estate market. Such a disproportionate amount of homes on the market compared to the number of buyers led to another year of record high sales prices and record low days on market.
Buyer competition for the limited number of homes available resulted in bidding wars which drove prices even significantly higher than in 2020.
“The number of homes listed for sale last year was almost 11 percent higher than in 2020,” said Sue Van Woerkom, 2022 President of Columbus Realtors. “Yet seller activity simply couldn’t rise enough to meet the significant increase in demand.”
“We actually had more listings in 2021 than in any year since 2010, when the country was recovering from the stock market and housing crash of 2008, and far too many homeowners were forced to sell their homes.”
In Central Ohio, 36,489 homes sold in 2021, up 9.1% from the year prior.
The price of single family homes increased by 12.6% from 2020 while the price of condos increased by 14.3%. Furthermore, on average, Sellers received 102% of their list price (an increase of 2.4% from the previous year).
Distressed sales continued to decline due to forbearance efforts by lenders and the government, causing short sales and foreclosures to drop by 29.2% from 2020.
Home builders still struggle with labor and supply shortages as well as rising material costs leading to construction freezes, delayed closings, and regular base price increases.
“The ongoing pandemic makes it difficult to predict what housing activity will look like in 2022,” added Van Woerkom. “Many economists are forecasting that mortgage rates will rise slightly this year, so housing affordability will remain an important factor to watch.”
“But we’re optimistic. Our strong job and economic climate continues to attract folks to central Ohio. And our builders are working feverishly to help provide more housing.”
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.