State of the Market Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Central Ohio Home Inventory and Prices Increase

RealSupport — Tue, 09 Apr 2024 02:38:19 +0000

Columbus home buyers found a bit more to choose from during February, with the inventory of homes for sale up 21.7% compared to a year ago. According to the latest data by Columbus REALTORS©, overall home inventory increased to just over one month of supply, a 33.3% increase from February 2023.

Data from Columbus REALTORS© identified a notable uptick of listings in three markets during February, located in the following areas:

Westerville City School District, 80 new listings
Worthington City School District, 55 new listings
Delaware City School District, 62 new listings

While any increase in home inventory is welcome, it remains well below normal. This keeps pressure on home prices, which increased 6.6% during February, reaching an average of $336,802. Homes are also selling quickly, averaging 37 days on market.

Central Ohio remains a seller’s market, a condition that will remain for the foreseeable future. On average, sellers received 97.4% of their original asking price. However, a number of listings have seen price adjustments, and sellers have been willing to negotiate somewhat.

Buyers may have opportunities to find wiggle room on price, especially if they have the guidance of an Exclusive Buyer’s Broker. Learn how we negotiate the best possible price and terms for our Buyer-Clients by reading our free e-book, “How to Buy a Home like a Pro!”

The market information from Columbus REALTORS© represents transactions occurring through the MLS. It does not include sales conducted without a listing agent, such as homes For Sale by Owner, and new homes marketed directly by builders. As Exclusive Buyer’s Brokers, we can show you any home for sale, from any seller.

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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How the NAR Court Settlement Could Affect Home Buyers

RealSupport — Tue, 09 Apr 2024 02:26:02 +0000

The National Association of REALTORS© (NAR) has proposed a settlement to resolve the Burnett v. NAR case and similar lawsuits that have made headlines for the past year. If the settlement is approved by the courts, there are several areas that may affect home buyers as early as July. Here is a simplified guide to what may happen, along with our thoughts!

Buyer agency service agreements would be required for any agent who represents the buyer side of the sale – IF they are members of the MLS.

This does not mean buyers will receive any improvement in the level of service that they get from a traditional brokerage.

Only Exclusive Buyer Brokers and Exclusive Buyer Agents represent buyers only, 100% of the time, with no conflict of interests. We work for the best interests and protections of the home buyer in everything we do. For details about how important this difference is, read our free e-book, “How to Buy a Home like a Pro.” It’s available for immediate download on our website.

Home sellers will not be required to offer a commission to buyer agents. They may offer compensation if they wish.

Typically, a home seller would pay a certain percentage of total commission to be shared between the seller’s agent and the buyer’s agent.

Under the settlement, the amount of commission allowed to the seller agent and to the buyer agent, would need to be stipulated in the listing agreement. (Sales commissions have always been negotiable, but consumers were not always aware of it.)

Despite the many opinions floating around in the media, it is unlikely that sellers will refuse to offer commission to a buyer’s agent. For those that do, there will be alternatives for buyer agent compensation. We detail how this works in our own Buyer-Client agreements.

The settlement does not automatically mean that buyers will have to pay their buyer agents directly out of pocket.

Buyer agents will not be required to belong to a Multiple Listing Service. In other words, if the buyer’s agent is not an MLS member, he or she can skip having a service agreement with the buyer. This wouldn’t be in the best interests of the buyer!

Buyer agent commissions would no longer be allowed to show on home listings. However, seller incentives towards closing costs, or other credits allowed to the buyer, could be published with the listing.

Seller agents would not be required to be members of a Multiple Listing Service.

This is an interesting wrinkle. If neither buyer agents nor seller agents are required to belong to an MLS organization, how does it improve service and transparency to buyers and sellers? It doesn’t. What it will do, is open a wide door to “pocket listings” that are not shown on the MLS. This could reduce home choice for buyers, and reduce market exposure for home sellers.

Please note that until the settlement is approved by the courts, everything has the potential to be revised. For now, what was true in the past remains true today, and true in the future: home buyers are best served by Exclusive Buyer Brokers and Exclusive Buyer Agents!

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Columbus Housing Market Forecast: Hot!

RealSupport — Thu, 25 Jan 2024 08:31:17 +0000

It didn’t take long for Columbus to be named one of the “hottest” housing markets once again! The latest projection comes from Zillow, which expects Columbus to be the third-hottest real estate market in the U.S. during 2024, second only to Buffalo and Cincinnati.

Zillow ranked U.S. housing markets according to expected gains in home values, along with the projected speed of home sales, and new construction activity. Job growth and the ratio of owner-occupied vs. renter-occupied homes were also factored in.

Columbus has been dubbed a “hot” housing market on many occasions. The latest title comes as no surprise to Columbus home buyers who have seen home prices steadily increase year-over-year. According to Rocket Homes, the median sold price of a Columbus home was $274,842 during December 2023, which is a 7.8% increase over the median sold price of December 2022.

A hot housing market is beneficial to current homeowners, who are seeing their equity rise by leaps and bounds. But a too-hot market can potentially stifle economic growth. This is a point raised in a recent article by Columbus Business First, which said that a lack of affordable housing – or a lack of housing, period – can prevent new residents from moving in, and filling job openings. As older residents retire, we need an influx of working-age residents to keep businesses operating and our economy humming. However, that new workforce needs somewhere to live.

So far, most real estate economists expect housing inventory to improve during 2024. What must be acknowledged is that inventory levels have been below normal for years. It will take year-over-year improvements in home inventory levels to ease the pressure on home prices. In the meantime, Columbus home buyers need to be ready for another competitive market in 2024.

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

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Columbus Home Sales Wrapped 2023 on Strong Note

RealSupport — Thu, 25 Jan 2024 08:20:47 +0000

Columbus area home buyers persevered against higher interest rates, inflation and rising home prices during 2023. According to the year-end figures by Columbus REALTORS©, the median sales price of a Columbus area home was $295,000 during December 2023, marking a 7.3% price increase compared to the December 2022.

When measured over a 12-month period of sales activity, the 2023 median home price in the Columbus Metro was $302,000, representing a 4.1% increase in prices compared to the 12-month period of 2022.

Sales price gains were particularly strong in communities like Pickerington, which saw a December median sales price of $449,900. This is an eye-popping increase of 45% over December 2022. The nearby village of Obetz saw a 33.8% increase in year-over-year home sale prices, with a median price of $356,425 recorded in December.

There is a bit of good news for Columbus home buyers. While the median sales price increased in our area, the speed of home price increases slowed down during 2023. By December, homes were spending an average of 30 days on the market. This isn’t exactly a “slow” market, but it held more breathing room than the summer months, when homes spent about 17 days on market.

Inventory remains a challenge for home buyers, but there was some improvement. The current supply of homes for sale stands at 1.4 months, which is a 27% increase from where things stood a year ago. However, new listings in December 2023 were down about 1% from December last year. Overall home inventory remains well below normal.

Looking ahead, inflation pressures and mortgage interest rates are expected to soften during 2024. There is some hope that pent-up sellers will bring more properties to market this year. Meanwhile, a measurable decline in mortgage interest rates is likely to bring more buyers to the market, meaning that home prices will continue to push higher.

As a home buyer, you need to do all you can to level the playing field! Start with our free e-book, our free e-book, “How to Buy a Home like a Pro!” Download your copy from our website today, there is no cost and no obligation.

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Columbus Home Buyers, Get Ready for 2024!

RealSupport — Tue, 16 Jan 2024 09:39:55 +0000

Columbus home buyers had a challenging year in 2023. Fast-rising home prices, combined with the highest mortgage interest rates in over 20 years, made home buying an expensive prospect. Limited home inventory kept buyers under pressure.

The New Year may bring better opportunities for home buyers, based on the latest projections from the National Association of REALTORS.^© Mortgage interest rates, which have already softened in recent days, are expected to stabilize below 7%. A rate environment between 6% and 6.75% is a possibility by summer.

That’s good news! But lower rates may draw more buyers to the market while the inventory of homes for sale remains low. We have seen modest improvement in year-over-year inventory levels during 2023, though it remains below normal. Low inventory is a recipe for higher home prices in 2024.

On the bright side, there is a chance that pent-up sellers could make a move this year. Columbus area homeowners are sitting on records levels of equity. Life events and changing household formation can motivate owners to become sellers, financial gains aside.

On the other hand, about 90% of homeowners with active mortgages have rates of 5% or less. They may not be in a hurry to sell, when replacing their current home would mean facing a more expensive mortgage. Roaring inflation further entrenched these homeowners, who found the cost of living rising on every other front.

If you are looking to buy a Columbus area home during 2024, don’t wait to react to market conditions. Instead, be well-prepared and ready to take action when the right opportunity comes along! Get ready for your home purchase by reading our free e-book, How to Buy a Home like a Pro!” Get your copy from our website today, there is no obligation.

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First-Time Home Buyers Gain Market Share

RealSupport — Wed, 06 Dec 2023 09:26:23 +0000

First-time home buyers made a comeback in 2023, gaining market share even as higher mortgage rates and rising home prices made purchases less affordable. According to the 2023 Profile of Home Buyers and Sellers conducted by the National Association of REALTORS©, first-time buyers accounted for 32% of all home purchases. This is a substantial improvement over the 26% of market share held in 2022.

However, successful first-time buyers are still fewer in number than in years past, when they typically claimed 38% of the market. The high point for first-time buyers was back in 2010, when they accounted for 50% of all home purchases.

The 2023 gain in market share came at a price. The survey shows a median annual household income of $107,000 for first-time buyers, a nearly 20k increase over income thresholds shown in the 2022 survey.

First-time buyers made an average down payment of 9%. About 24% of survey respondents tapped their retirement savings or investment accounts to generate their down payment. 11% of first-time buyers sold stocks or bonds. 11% used funds from a 401k, IRA or pension. 2% reported selling cryptocurrency.

When looking at demographics, most first-time buyers were Millennials with a typical age of 35. This is similar to 2022’s findings, where the typical first-time buyer was 36. 59% were married couples. 70% of them did not have children under 18 years old.

What is unspoken, but evident in the survey, is a widening wealth gap among first-time buyers. Unrelenting home price increases, paired with interest rate levels that are double from two years ago, have pushed home ownership out of reach for a growing number of people.

This is easy to overlook while home inventory is low, and homes are selling quickly. However, there are not enough affordable homes for buyers with the national median income of $74,580, or for those earning less. This is one possible reason why the number of successful first-time buyers are below historical norms.

Now the good news: you don’t have to be rich to buy a Columbus area home, but you do need to be well-informed! Not all homes are priced correctly for their condition or for the prevailing market trends. We show you how to identify value and create a compelling purchase offer in our free e-book, “How to Buy a Home like a Pro!” Get your copy now at the link, there is no charge and no obligation.

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Ohio Sees Drop in Home Building Permits

RealSupport — Sat, 04 Nov 2023 05:51:04 +0000

Columbus home buyers have been dealing with below-normal home inventory for several years. Homeowners have been affected by low inventory as well, having little to choose from if they were to sell their current home. More recently, rising interest rates have made homeowners reluctant to sell and give up the low-rate mortgages they currently enjoy.

This leaves new construction as the best hope for improving Central Ohio’s home inventory. Unfortunately, home builder confidence took a hit as quick-rising rates impacted buyers and raised financing costs for builders themselves.

This is evidenced in the decline of single-family home building permit activity in Ohio. Data released by the National Association of Home Builders shows a 14% drop in Columbus home building permits year-to-date as of August 2023, compared to the same period a year ago.

Most of Ohio saw a reduction in single-family home building permits. Dayton Ohio permits fell 21%. Cincinnati permits fell 18%. Canton permits fell 17%, Cleveland fell 16%, and so on. The only area to see an increase in building permits was Toledo, which lined up 143 more permits this year compared to last year. Overall, Ohio has seen a double-digit decline in building permit activity statewide for 2023.

The National Association of Home Builders has been vocal about the impact of interest rate hikes on the industry. In a joint letter issued with the Mortgage Bankers Association and the National Association of REALTORS© to Chairman Powell on October 9, there is an excellent point: increases in housing costs are a leading source of inflation. Higher interest rates make housing costs more expensive and worsen the problem. This is a very simplified summary: you can read the exact wording at this link.

While the trade associations have found some sympathy among the Federal Reserve Board of Governors, many economists expect that interest rates may rise a bit further before leveling off. There is an expectation that rates may stay elevated well through 2024, unless an economic disruption forces the Fed to pivot.

In the meantime, waiting for lower rates, more home inventory, or an “easier” real estate market may not be realistic for Columbus home buyers. You cannot predict the future. But you can find opportunities today with the help of an Exclusive Buyer’s Broker!

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Central Ohio Home Prices Show Autumn Gains

RealSupport — Sat, 04 Nov 2023 05:41:13 +0000

The median sales price of a Central Ohio home reached $310,000 in September, a gain of 7% from September 2022. However, the latest data from Columbus REALTORS® also points to a decline in home sale transactions, which fell by 14.5% compared to the same month a year ago.

Homes also took longer to sell, averaging 20 days on the market, compared to 18 days during September 2022.

Home inventory was slightly lower in September 2023 compared to September 2022, but this by itself does not account for the drop in home sale transactions. It is possible that home buyers are feeling the effects of unrelenting mortgage rate hikes, which have put mortgage interest rates at the highest threshold in twenty years.

We are still in a “seller’s market” however, and there is competition for quality homes in popular areas. New Albany posted a median home sale price of $895,000 during September, a whopping increase of 28% compared to median prices a year ago.

Homes in downtown Columbus had a median sales price of $560,500, a jump of 14% compared to last year. Home buyers are not equally affected by higher interest rates, as evidenced in these rising home prices.

One explanation comes from a Redfin survey, which found that 38% of young homebuyers, aged 30 years or younger, had financial help in the form of a cash gift from family, or in the form of an inheritance. The survey also found that this buyer group came from generational home ownership – meaning that their parents, grandparents, or both were homeowners themselves.

For home buyers who do not have his kind of support, it’s a tough market to break into. Fortunately, there are some ways to level the playing field, and chief among them is educating yourself about the home buying process. Our free e-book, “How to Buy a Home like a Pro,” contains home buying advice and strategies you won’t find anywhere else! Obtain your copy today through our website. We make it immediately available to you, and there is no obligation.

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Gahanna Ohio Named Hottest Zip Code in USA by Realtor.com

RealSupport — Wed, 30 Aug 2023 04:55:16 +0000

Gahanna is known as the Herb Capital Ohio. With a population of around 35,000 residents, this picturesque community offers all the conveniences of a larger city, while maintaining a beautiful park system spanning 750 acres. If this sounds good to you, you’re not alone – Gahanna zip code 43230 was named as the “Hottest Zip Code of 2023” by Realtor.com.

In awarding the title, Realtor.com examined the most popular home searches around the country, based on the number of views for each listing in a community, and the overall pace of home sales. Gahanna homes for sale received 4.5 views per property, the most for any community in the USA. Interestingly, about 13% of the viewing activity hailed from the New York City, Newark and Jersey City area.

The relatively high proportion of out-of-town home searches suggests that Gahanna’s quality of life and affordable real estate are drawing buyers from larger, more expensive metros. Throw in a booming job market, and it’s easy to see why Central Ohio appeals to buyers from around the country.

In fact, Gahanna wasn’t the only Ohio city on the “Hottest” list. The top 50 list of “Hottest Zip Codes” included 10 Ohio communities: Gahanna, Dayton, Maumee, Howard, Ashland, Mansfield, Wooster, Chillicothe, Medina and Middleton. The median home price in these communities ranged from $166,000 to $418,000.

As we mentioned in prior blog posts, the competition facing local Central Ohio home buyers is not limited to fellow residents. The imbalance between home demand, supply and affordability is an issue in many parts of the country, and there isn’t an easy answer. It’s a challenge that the Columbus region may face for years to come.

However, even a “hot” market shouldn’t be taken at face value! Every market has nuances depending on location, price point and so on. Every home is unique, with its own pros and cons. Without expert guidance, you could find yourself paying too much for a home – or buying a home that doesn’t suit your needs, or both! You can see examples about this in our free e-book, “How to Buy a Home like a Pro!”

Photo credit: image of Creekside Gahanna, a mixed-use development in downtown Gahanna, sourced through Wikipedia Creative Commons licensing, attributed to Fahlgrenwikitest. For more information, visit https://en.wikipedia.org/wiki/Creekside_Gahanna

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Central Ohio Home Buyers Manage a Tough Market

RealSupport — Wed, 30 Aug 2023 04:18:58 +0000

The pace of Central Ohio home sales decreased slightly during July 2023, but home buyers are still facing a tough market. Here’s the latest real estate data from Columbus REALTORS®, along with our own insights!

During July, Central Ohio homes spent an average of 17 days on market before going under contract. This is about 30% slower than July 2022’s pace of 13 days on market. In Franklin County, homes spent an average of 14 days on market.

Home inventory, while improving in some areas, remains a challenge in most of Central Ohio. There were 3,137 homes on the market during July, a decrease of about 12% from July 2022. Franklin County saw home inventory fall by 19% on a year-over-year basis.

Home prices have continued to climb higher. The median price of a Central Ohio home reached $314,900 during July, an increase of 8.6% on a year-over-year basis. The silver lining for buyers: July’s home prices cooled slightly compared to June 2023, when the median sales price was a record-breaking $322,205. Meanwhile, Franklin County median sales prices increased 5.3% from a year ago.

Home buyers are also facing the highest mortgage interest rates in over 20 years, according to industry data from Freddie Mac. As of August 24, the average rate for a 30-year, fixed-rate Conventional mortgage reached 7.23%, a level not seen since 2001.

Despite the challenges of low home inventory, fast-paced sales, rising home prices and higher mortgage costs, many Central Ohio buyers are finding ways to adapt and succeed in this market. Larger down payments, adjustable-rate mortgages, and well-qualified co-signers are just a few of the tactics home buyers have employed. But the best advantage a Central Ohio home buyer can get for themselves is the professional representation of an Exclusive Buyer’s Broker!

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