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.
In major urban U.S. cities such as Seattle, New York City, Boston, San Francisco, and Washington, D.C., apartment unit sizes have been decreasing as developers seek higher density and revenue per square foot to compensate for increased land value and construction expenses. These "micro-units" are typically studios or one bedroom apartments with full kitchens and bathrooms and lease for 20 to 30 percent lower per month than conventional units yet have high value ratios (rent-per-square-foot). The size of such units varies according to city-specific size requirements for new dwelling units, but typically ranges from 280 square feet to 450 square feet, often falling between the sizes of a one and two car garage.
The first prefabricated micro housing project in the U.S., SmartSpace SoMA (shown below), was built in San Francisco in 2013. Its 23 units are just smaller than 300 square feet each and feature dining tables that convert into beds.
Micro units have preformed well when compared to conventional units, achieving higher occupancy rates and rent-per-square-foot. According to 2014 consumer research conducted by the Urban Land Institute, nearly a quarter of renters in traditional apartments would be interested or very interested in renting a micro unit. However, real estate analysts have yet to determine if micro units characterize a large, relatively untapped market or is simply a niche market. The popularity of these units could be attributed to their relative scarcity as opposed to unmet demand - only time will tell.
