Greater Columbus Area Market Trends

(February 28, 2008) Fewer homes were put into contract at the end of 2007 which resulted in fewer closings in the first month of year. The 1,225 homes sold in January 2008 slipped 18.9 percent from the 1,510 sales in January 2007 - which was 12.2 percent higher than the previous year according to the Columbus Board of REALTORS®.

"As closings in January are a direct result of activity and contracts written 30-60 days prior, it comes as no surprise that there was a drop in closings last month," says Greg Hrabcak, President of the Columbus Board of REALTORS®. "The housing market traditionally experiences less activity beginning around Thanksgiving and into the new year. And REALTORS® had been reporting a higher than normal drop in activity."

"Homes in the $80,000 - $100,000 range, $400,000 - $500,000 and $1 million and over were hardest hit. Each of these price ranges saw decreases in sales in excess of 37 percent," added Hrabcak.

The average sale prices of a home closed during the month of January 2008 was $152,790 compared to $166,096 the previous year. The average sale price in 2007, January through December, was $165,057.

"This lower average price goes hand in hand with the sales declines in the higher price ranges," adds Hrabcak. "When fewer homes are sold in the upper price ranges, the average sale price for the month will decline accordingly. Real estate professionals understand that activity in any single month can fluctuate quite a bit. It's the direction over a period of time which we focus on."

According to Hrabcak showing activity picked up noticeably in January when interest rates dropped. "Just eight years ago, the average rate for a 30-year fixed rate mortgage was 8.21 percent. Now it's hovering around six percent. But it won't last and we encourage anyone interested in buying a home to take advantage of what a lower interest rate means in terms of buying power and building equity."

(March 20, 2008)  The number of homes contracted for sale in February 2008 took a very positive turn, topping contracts written during the previous three months as well as the same month last year according to the Columbus Board of REALTORS®.

“The drop in mortgage interest rates in late January generated immediate housing activity,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “Many buyers were waiting for the drop. Some used it to be able to afford their first home as the lower interest rates helped them to finally qualify for a home. Others jumped at the chance to move up to a larger home.”

Although home contracts increased, actual sales lagged last year by 5.8 percent – a carry over from the lack of housing activity during the holidays and first of the year.

The average sale price of a home last month was 156,497, a decrease of 4.8 percent from the average sale price of $164,397 in February 2007.

Fewer homes were listed for sale in February 2008 (3,538) compared to January (3,812) and February 2007 (3,417). The total number of homes listed for sale is now lower than the inventory level one year ago.

“As inventory levels have been roughly thirty percent higher than normal for the last year or so, any leveling off in new listings is a welcome sign for the market as a whole,” comments Hrabcak. “The fact that the supply has been significantly greater than the demand has resulted in lower sale prices, lengthier sales listing periods and a general concern about housing.”

“But housing, like most economic sectors, is cyclical. This buyer’s market won’t last forever.”

Year End Residential Home Sales - Central Ohio
Provided by the Columbus Board of REALTORS®

Annual Residential Home Sales
	Sold Listings	Dif from Previous Year	Average List Price	Average Sale Price	Dif from Previous Year	Total Dollar Volume	Dif from Previous Year
2007	24,445	- 6.9%	$178,766	$172,531	-1.2%	$4,217,520,295	- 8.0%
2006	26,251	- 4.5%	$180,162	$174,688	-1.8%	$4,585,734,688	- 6.3%
2005	27,493	3.1%	$182,504	$177,978	4.4%	$4,893,149, 154	7.6%
2004	26,660	9.7%	$174,876	$170,522	2.2%	$4,546,116,520	12.0%
2003	24,306	9.2%	$171,205	$166,928	5.0%	$4,057,351,968	14.7%
2002	22,267	7.2%	$163,216	$158,927	3.8%	$3,538,827,509	11.2%
2001	20,779	8.6%	$157,281	$153,096	3.1%	$3,181,181,784	12.0%
2000	19,126	1.0%	$152,720	$148,556	4.2%	$2,841,282,056	5.2%
1999	18,939	-3.3%	$146,632	$142,576	4.2%	$2,700,246,864	0.8%
1998	19,577	17.4%	$141,112	$136,843	4.1%	$2,678,975,411	22.2%
1997	16,682	0.4%	$135,858	$131,439	4.5%	$2,192,665,398	5.0%
1996	16,614	11.0%	$129,811	$125,724	6.5%	$2,088,778,536	18.3%
1995	14,962		$121,970	$118,000		$1,765,516,000
The tables above reflect the monthly statistics for listings from the Columbus and Central Ohio Multiple Listing Service which serves all of Franklin, Delaware, Fayette, Morrow, Madison and Union Counties and parts of Clark, Champaign, Fairfield, Hocking, Knox, Licking, Logan, Marion, Pickaway and Ross Counties.