Columbus-Area Home Sales Remain Strong Heading Into Fall

It was a busy summer for home sales! There were 3,116 central Ohio homes and condos sold during the month of August, a 4.8% increase over the previous year. This was the highest number of closed sales for the month of August ever recorded and the second highest month for 2016, according to the Columbus REALTORS® Multiple Listing Service.

“Central Ohio home buyers are still being very aggressive in their decisions to purchase homes" said 2016 Columbus REALTORS® President John Royer. “Since demand for homes continues to be so high, potential sellers are encouraged to get their home on the market – they don’t have anything to lose!"

The average sales price of a home in central Ohio during the month of August was $204,629, a 3.3% increase over August 2015. During the month of August, central Ohio homes and condos spent an average of 34 days on the market, which is 29.2% (14 days) shorter than last year and just one day longer than July.

“Inventory and new listings are beginning to taper, but this is to be expected as we head into the fall selling season" Royer said. “However, it’s still a terrific time to list your home as buyers remain eager for inventory and home values remain high.”

According to the latest Housing Market Confidence Index by the Ohio Association of REALTORS®, 98% of central Ohio REALTORS® would describe the current housing market as moderate to strong. When asked what the single most important factor that they believed limited their buyers from purchasing a property so far this year, 92% said difficulty finding the right property because of low inventory.

“Homes are continuing to fly off the market, even as inventory begins to dwindle,” Royer said.”

To Buy or Sell First?

If you already own a home and are looking for a new one, you’re faced with a challenging question: should you sell your current home before you buy your new one, or vice-versa? To help make this decision, consider the following three factors:

1) Market conditions. You may have heard terms such as "seller's" or "buyer's" market. However, when you sell and buy homes, you must consider the housing market for your given neighborhood, house style, and price. Work with a professional Realtor to get an idea of how long your home should sit on the market, and about how long it should take you to find what exactly you are looking for. Use online resources such as Realtor.com to see how common homes are that meet your criteria. 

2) Finances. Many people need the equity from selling their current home to put towards the down payment on their new home. So what do you do while transitioning? You could stay with friends or family, or temporarily move into a rental unit (this may require you to rent a storage unit, as well). Alternatively, you can rent your home from your buyers in order to give you more time. The rent-back term is only valid for a maximum of 60 days, as a longer lease would categorize the home as income property. Lenders may be able to help you by granting you a bridge loan. The drawback to selling your home before you buy another is that you may feel rushed if you are unable to find a home you like in a reasonable amount of time.

3) Risk Aversion. Would you rather be stuck with nowhere to live, or with two mortgages? Regardless, Realtor.com advises homeowners to have a backup plan—for example, an alternative source of income or a place to stay should you sell your home sooner than expected.