Housing Market Update
Central Ohio continues to be in the midst of one of the most competitive housing markets in history!
The escalating intensity of bidding wars has led to more and more cash buyers entering the market. Already in these first couple of months of 2022, the share of cash buyers jumped from 21% to 24.3% while the share of buyers obtaining a conventional loan dropped from 62% to 59%.
“As competition remains fierce and home prices continue to escalate, offering cash to purchase a home is a strategic move for some buyers,” said Sue Van Woerkom, 2022 President of Columbus REALTORS®.
In Central Ohio, 36,489 homes sold in 2021, up 9.1% from the year prior.
“Another option for those needing to finance their purchase would be to use cash reserves to cover the appraisal gap if there is one. That means the buyer would pay the difference between the fair market value determined by the appraiser and the amount they agreed to pay for the home.”
“Homeowners today have, on average, more equity in their homes than ever before which can translate to supplemental cash. And the stock market boom over the last couple of years has enhanced many investors portfolios, providing another option for additional cash.”
The price of single family homes increased by 11% from last month and homes continue to sell well over their list prices.
By the end of February, there were 1,745 homes on the market, a 3.3% increase from this time last year and home sales were up 1.8%. However, in-contract listings dipped a bit from the previous month.
“It’s not too surprising that we had fewer homes go into contract in February as we had some pretty frigid temperatures last month,” add Van Woerkom. “Housing activity has already started to ramp up again with the spring weather and we’re expecting increased activity into the spring and summer.
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.