Greater Columbus Area Market Trends

(January 24, 2007) Residential home sales slowed down in 2006 but still managed to end as the third highest year on record. Sales dropped only 4.5 percent below last year and just 1.5 percent from the total sales in 2004 according to the Columbus Board of REALTORS®.

Mortgage interest rates peaked at 6.5 percent last summer and then dropped to under six percent for the remainder of the year. Buyer interest, oddly enough, followed the same trend, peaking mid summer and then dropping steadily throughout the second half of the year.

Most notable in 2006 was the significant number of homes listed for sale. Throughout the course of the year, inventory levels were anywhere from 12 to 31 percent higher than the previous year. In July of 2006, there were 18,859 residential homes on the market, the highest number on record for central Ohio.

"Buyers controlled the market in 2006," said Brad Bennett, 2007 President of the Columbus Board of REALTORS®. "Although lower than the year before, home sales were still very healthy. Not, however, healthy enough to satisfy the sizeable number of owners wanting to sell their homes. With such a high level of supply and not enough demand, buyers held the stronger hand when negotiating for a home last year."

Under the circumstances, it comes as no surprise that homes took 11 days longer to sell last year and the average price of a home in 2006 was 1.8 percent lower than the year before.

Fortunately, inventory levels began receding during the second half of 2006. At the beginning of 2007, there were over 15,600 homes on the market. Although this is still 11.6 percent more than were listed the previous year, it is considerably lower than the levels during most of 2006.

"The good news is activity is up," comments Bennett. "We're hearing from many agents that calls and showings are picking up. There are already more homes under contract this month than were sold during the entire month of January last year."

Year End Home Sales

(February 27, 2007) After six consecutive months of sales coming in lower than the year before, central Ohio home sales shot up in January. There were 1,510 home sales last month which is up 12.2 percent over the previous year?s 1,346 sales. During eight of the 12 months last year, sales were less than in 2005 which is still the highest sales year on record according to the Columbus Board of REALTORS®.

"After the gloom we've experienced lately, a 12 percent increase is in sales sure brightens up our expectations for 2007," says Brad Bennett, President of the Columbus Board of REALTORS®. "As sales are the equivalent of closings which generally occur 30 days after a contract is signed, this means that many Ohioans decided to buy a new home for the holidays."

Homes that went into contract in January are just 2.7 percent less than contracted sales last year, which would suggest that February sales will also be neck and neck with 2006.

"But the unseasonably frigid weather we experienced earlier this month prevented many people from looking at homes. We're hoping the recent break in the weather will entice potential buyers back in to the market," adds Bennett.

New listings almost doubled in January. Although the 4,154 new listings are about the same as were added new January of 2006, the additional inventory brings the total to 16,025 listings on the market, fully 10.3 percent more homes than were on the market one year ago.

"From the seller's perspective, the increase in inventory fairly negates the increase in sales," comments Bennett. "The significant addition of homes for sale brings our month?s supply to 10.6, meaning that, even if no more homes are listed, it would still take 10.6 months to sell what we have at our current sales rate."

"As long as the inventory remains so elevated, homes will continue to stay on the market longer and sell for less. There's not a seller out there that wants to hear that news."

 The BIA will host its annual Parade of Homes in Grove City at Pinnacle in Grove City, June 9-24, 2007. Builders are preparing to break ground on the 600-acre master planned community with a large diversity of housing product all within 10 minutes of downtown Columbus.

Pinnacle is located in the heart of the Grove City's growth corridor and just 10 minutes from downtown Grove City's charming historic town center with old town neighborhoods, tree-lined streets, retail shops and cafes. With price points reaching $700,000+, parade attendees will see the latest in design trends and home technology, and even some green buildings.

American Heritage Homes, Ashley Homes, CV Perry Builders, Dani Homes, Duffy Homes, Heitmeyer Homes, Lakeside Construction, Rockford Homes, Showcase Homes, Trinity Builders and Wayne Homes are the builders featured in this year's parade.

For more information, visit: http://www.biahomebuilders.com/ParadeHomes/2007Parade.htm