Greater Columbus Area Market Trends

(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.”

(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."

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.

(January 24, 2008) Interest rates, prices and inventory combined to make 2007 a memorable year for central Ohio home buyers according to the Columbus Board of REALTORS®.

"Despite what you might have heard, the housing market in central Ohio was going strong in 2007," says Greg Hrabcak, President of the Columbus Board of REALTORS®. "In fact, it was probably the best year on record for buyers as interest rates were really low, home prices were very competitive, and the selection was the best we've ever seen in this market."

Although home sales last year trailed the housing upsurge of recent years, central Ohio still ended as the fourth best year on record with 24,445 residential existing and condominium sales.

Throughout the year, there were almost 50,000 residential homes and condos listed for sale in the 16 counties included in the Columbus and Central Ohio Multiple Listing Service (MLS). Of those, roughly half sold in an average of 108 days.

The average price of a home in central Ohio last year - $172,531 - is well below the national median price which was $210,200 in November 2007. The average sale price is also 1.2 percent lower than the average sale price of $174,688 in 2006.

"The lower average sale price can be attributed to a couple facts," explains Hrabcak.  "First, because for much of the year we had roughly ten homes on the market for every buyer, many homeowners were forced to drop the selling price of their home in order to compete." 

"Second, we had 22 percent fewer homes sell in the $1 million dollar range. Homeowners resistance to drop the price as well as lenders? temporary aversion toward jumbo loans likely had impact here."
 
"And third, we saw 124 percent more homes sell for less than $30,000.  Many of these lower priced homes were purchased by investors who recognized just how favorable the 2007 housing market was and took full advantage of these conditions."

"We're expecting that, with the additional drop in mortgage interest rates, more buyers will also realize that now really is a great time to buy a home."

(December 20, 2007) The average price of a home sold in central Ohio last month was $170,808 - up 2.1 percent from a year ago. Year to date, the average price of a home sold is just over one percent lower than the previous year according to the Columbus Board of REALTORS®.

"As record levels of inventory have forced prices down over the last year, any sign of a home price increase is welcome," says Brad Bennett, President of the Columbus Board of REALTORS®. "Bear in mind that, although the average sale price of a home has dropped slightly this year, the value of the home has not been diminished. Central Ohio home value are holding strong."

The number of homes added to the market in November dropped almost 18 percent from the month prior. However, homes that went into contract or sold were only 13 percent lower than in October."

"Right now we have around ten homes on the market for every one buyer -- a buyer's market," comments Bennett. "A balanced market is about 6.5 or 7 homes for every buyer. So, a slowing in the number of listings added to the market is good news."

The Columbus Board of REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Madison, Morrow and Union Counties and parts of Champagne, Clark, Licking, Fairfield, Hocking, Knox, Logan, Marion, Pickaway and Ross Counties.

In October, Forbes.com and Moody's Economy.com studied America's 40 biggest cities focusing on the state of local economies, new construction contracts, foreclosure rates, local credit markets, sales rates, affordability and inventory. Of those 40 cities, Columbus, Ohio: Ranks as 3rd most stable housing market; should boast the eight-fastest sales rate next year; and home prices are projected to increase 3.49% in 2008.

(November 27, 2007)  The number of listings added to the market in October was down for the third month in a row, a strong indicator that the market is beginning to correct itself. The 3,578 homes listed last month is down 6.9 percent from one year ago. In addition, new listings in August and September were down 8.3 percent and 5.7 percent respectively according to the Columbus Board of REALTORS®.

"The record number of listings added to the market each month has tilted the scales strongly in favor of the buyer this year," said Brad Bennett, President of the Columbus Board of REALTORS®. "As the inventory of homes has been roughly sixty percent higher than our norm, sellers have had to lower prices to compete for the buyer. This has caused home values to appear lower than they actually are. As the listing pace slows, inventory levels will drop and home prices will rise again as the market begins to correct itself."

The average price of a home sold in central Ohio in October was $164,844 which is 0.9 percent lower than the average sale price one year ago. The average sale price of a home sold in the first ten months of the year is $173,122, which is 1.5 percent lower than the year to date average last year.

"A Forbes.com study released in early October reported that Columbus Ohio is the third most stable housing market in America and further projects that we?ll see strong price appreciation in 2008," comments Bennett. "As REALTORS®, we know that 2007 has been a corrective year after several years of extraordinary housing activity. We also know, based on our experience, that central Ohio is and always has been reliable and solid when it comes to home values."

(October 18, 2007)  Although home sales are down nationally, central Ohio home sales are not showing such dramatic decreases and are still above figures before the housing boom.  Home sales in August were down 12.8 percent nationwide, but only off by 7.4 percent locally. Pending sales at the end of August were down 21.5 percent nationally, but only down 5.7 percent in central Ohio according to the Columbus Board of REALTORS®.

“We keep saying that sales are pretty good and they are,” says Brad Bennett, President of the Columbus Board of REALTORS®. “Thus far, this year’s home sales are trailing last year by about 5.5 percent but still well above where we were before the housing boom. We expected the market to take a breather while correcting itself, and we’re seeing that happen this year.”

The average price of a home sold, January through September, in central Ohio is $173,940. This is down 1.2 percent from the average home sale price last year. And, although homes sold in September only took about 4 extra days to sell, year to date days on market is averaging about 107 days versus the 95 it took to sell a home last year.
 
“We’re seeing record numbers of homes put on the market for sale in the area which lends itself to a reduced sale price and longer selling period,” continues Bennett. “The flip side is, of course, that buyers should be really excited about the selection they have to choose from. And with interest rates and prices so competitive, this really is a great time to buy a home!"

(September 21, 2007)  Local REALTORS® are energized about the number of homes available for sale in the central Ohio area right now.  With the 4,505 new listings added to the market last month, that brings the total inventory of residential listings to 19,789 - a full 5.5 percent more than last year but almost twice (83 percent) the selection buyers had just 5 years ago according to the Columbus Board of REALTORS®.

"Buyers today have access to a greater variety of homes for sale compared to any other year in our history and interest rates are still hovering around 40-year lows," said Brad Bennett, President of the Columbus Board of REALTORS®. "And if that news isn't enough to get people excited about buying real estate, the Federal Reserve slashed their key rate this week by a half point which made borrowing at the lending level more affordable and should further strengthen our competitive mortgage interest rates."

Year to date sales are still short by about 4.7 percent when compared to last year which, at that time was still the second highest year on record for home sales. Home sales figures for the month of August show that, on average, homes are selling at a slower pace than the same month last year.

"REALTORS® are encouraging buyers to take advantage of this market," adds Bennett. "Although appreciation has been flat while the market corrects itself, homes have appreciated 33.7 percent over the last decade. Investing in real estate - especially in central Ohio - is one of the smartest long term decisions a buyer could make."

(August 23, 2007)  Those central Ohioans interested in purchasing a home kept many sellers busy this summer as is evidenced by the rise in home sales last month. The 2,398 homes sold in July represent a five percent increase over the 2,283 sales last year according to the Columbus Board of REALTORS®.

“The increase in home sales last month is good news for both buyers and sellers, says Brad Bennett, President of the Columbus Board of REALTORS®.  “Obviously those sellers whose homes are on the market sigh with relief when sales are increasing.  But how does this benefit the buyer?”

“When you continue to have more homes for sale than buyers, as we’ve had for over a year now, home sales prices will flatten. Although this works in the buyer’s favor in the short term – i.e. the purchase of a home at a very competitive price, the buyer turned homeowner then wants to see the value of their home increase. In order for that to happen, the demand and supply need to move more towards a balanced market which requires either a decrease in housing inventory or an increase in sales.  Thus the increase in sales is good news for buyers.”

In addition to the increase in home sales, the number of homes which went into contract last month increased almost two percent over the previous year which suggests that sales will be on the increase again in August.

The average sale price of a home sold in July was $184,521 which is 0.8 percent behind the average sale price for the same time last year. Year to date, the average sale price is $176,495 which is a mere 1.1 percent behind last year.

“There is still money available at good rates,” adds Bennett. “And we have many reputable lenders here in central Ohio. Ask your REALTOR® for a recommendation.”