An increase in pending home sales drops inventory further

Central Ohio saw 2,473 homes go into contract during the month of January, up 24.5 percent from the previous month, and 4.4 percent higher than a year ago. There were 2,170 central Ohio homes and condos added to the market in January. Although this was 47.8 percent more than the previous month, it was 2.2 percent lower than January 2016, leaving the inventory at 4,329 according to the Columbus REALTORS Multiple Listing Service.

“Just when we thought inventory couldn’t get any lower, it did,” said 2017 Columbus REALTORS® President Mic Gordon. “The increase in new listings wasn’t enough to offset the high number of homes that went into contract, bringing the number of homes left for sale to a new record low.”

There were 1,594 central Ohio homes and condos sold during the month of January, a 1.3 percent increase from January 2016, although down 29.2 percent from December.

The averages sale price of a home in January was $195,773, up 6.6 percent from one year ago. The median sales price was $160,800, a 5.1 percent increase over January 2016.

“Month after month, we’re seeing new records set for the central Ohio housing market,” Gordon said. “As long as inventory remains at record lows and demand remains strong, prices will continue to rise.”

During the month of January, central Ohio homes and condos spent an average of 50 days on the market, which is the lowest on record for the month. This is 10 days less than a year ago, but five days more than the previous month.

According to the latest Housing Market Confidence Index by the Ohio Association of REALTORS®, 98 percent of central Ohio REALTORS® would describe the current housing market as moderate to strong and 96 percent expect home prices to increase over the next year.

When asked what change they are seeing in the level of interest renters are expressing toward buying a home compared to last year, 65 percent said a substantial to slight increase in interest, 31 percent said no change and 4 percent said a substantial to slight decrease in interest.

Central Ohio housing market saw record highs and lows in 2016

Central Ohio ended 2016 with the highest number of home sales and the highest home prices on record. The year also saw the lowest month's supply and days on market, due to the lowest inventory levels on record for the Columbus REALTORS® Multiple Listing Service.

The 31,532 home sales recorded in 2016 rose 6.8 percent above 2015 and marked a 58.9 percent increase from our lowest point (2011) since the last housing boom in the mid 2000’s. Of those sales, 26, 832 were single family homes and 4,700 were condominiums. The average sales price of a central Ohio home in 2016 has now cleared the $200,000 mark at $202,224, up 5.8 percent from 2015 and up almost 30 percent from 2011. The median sales price of a home in 2016 was $170,000, which is 6.3 percent higher than the previous year.

Of the homes sold in 2016, 4,405 (14 percent) sold for $80,000 or below in an average of 61 days; 4,273 (14 percent) sold for $80,001 - $120,000, selling on average in 44 days; 5,902 (19 percent) sold between $120,001 and $160,000 and in about 32 days; 9,029 (29 percent) sold for $160,001 - $250,000 and sold in an average of 33 days; and 7,923 (25 percent) sold for over $250,000 and took about 54 days to sell.

“Soaring home prices are another reflection of how hot the central Ohio housing market is, which continues to be beneficial for anyone who might be looking to list their home for sale,” said Mic Gordon, 2017 President of Columbus REALTORS®. “With inventory at a record low, there couldn’t be a better time than the present to put your home on the market.”

Throughout 2016, the number of homes on the market stayed an average of 21.8 percent lower than in 2015. Central Ohio experienced the lowest inventory on record in the month of December 2016 with only 4,653 homes and condos available for sale. This is a 13.8 percent decline from November and 26.1 percent drop from the previous year.

The months supply of inventory at the end of 2016 hit a record low at 1.7 meaning that, if no more homes were added to the market, it would take less than two months to sell all of the homes and condos currently for sale in central Ohio. (A balanced market is usually around 6.5 months supply.) During 2016, central Ohio homes and condos spent an average of 43 days on the market – 12 days fewer than 2015 and another record low.

“With the highest sales and prices, yet the lowest inventory, 2016 was indeed a year of record highs and record lows for the Columbus region,” said Gordon. “Many houses are selling almost as quickly as they come on the market, which further affirms how attractive and desirable homes are in central Ohio.”

There were 1,468 central Ohio homes and condos added to the market in December, which is a 2.5 percent decrease in inventory from one year ago and 33.3 percent lower than the previous month (November). The average sales price of a home in December was $196,225, up 7.2 percent from last year. The median sales price was $163,000, a 5.2 percent increase over December 2015.There were 2,252 central Ohio homes and condos sold in December, which is a 1.1 percent increase over the previous month and remains unchanged from December 2015.

According to the latest Housing Market Confidence Index by the Ohio Association of REALTORS®, 94 percent of central Ohio REALTORS® would describe the current housing market as moderate to strong and 92 percent expect home prices to rise over the next year.

When asked how the residential real estate market will perform in 2017, 45 percent said it will improve at a fast to moderate rate, 43 percent said it will continue at its current rate, and 12 percent said it will slow at a fast to moderate rate.