First-time home buyers are returning to the real estate market in greater numbers, according to data from the National Association of Realtors. First-time buyers accounted for 32% of national home sales in May 2015, an increase of 5% from a year ago.
Overall home sales are on the upswing as well. Nationally, existing home sales in May increased 5.1% from the prior month. Home prices have steadily increased as well, with national prices averaging 7.9% more from a year ago. National median home prices are hovering around $229,700.
Central Ohio home sales volumes are up 9% from May 2014 to May 2015, according to the Columbus Association of Realtors. The median price for a Metro Columbus home is currently $169,000. This represents a nearly 10% gain in price from May 2014.
There are several factors behind the current momentum. FHA mortgages now have lower Mortgage Insurance Premium costs (MIP), which makes these entry-level mortgages more affordable. Also, credit and down payment requirements have eased somewhat, giving better opportunity to first-time home buyers. Other motivators include a stronger economy, greater employment confidence, and the possibility of higher mortgage rates in the upcoming months.
At the same time, improving home values are allowing more homeowners to recover equity, empowering them to sell. However, we still have a number of homeowners with negative equity in Central Ohio, which has tempered our home supply. While we are seeing improvements in home inventory, the market is quick to absorb it.
A reminder about statistics: please always keep in mind, that Realtor associations only report home sales that were expedited through a listing agent. This means that sale-by-owner transactions, and new homes sold directly by builders are not included. Our actual market activity is much broader than these statistics! They are interesting as a benchmark, but they do not tell the complete story.
At Buyer’s Resource Realty Services, we can show you any home for sale on the market, even those not shown on the Multiple Listing Service!
As your Exclusive Buyer’s Broker, 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!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
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
