The sale of distressed properties in the Metro Columbus area has fallen to the lowest percentage of overall home sales since 2010, according to a report published in Columbus Business First. Distressed property sales, also called lender-mediated sales, include foreclosures and short sales.
During the second quarter of 2016, distressed home sales dropped to 8.6% of total home sales, which is one-third lower than the ratio we saw during 2015.
Looking at the numbers another way, distressed homes accounted for just 7.6% of total home inventory during the second quarter of 2016. During 2010, distressed home inventory accounted for a whopping 35.6% of all homes for sale.
The amount of distressed home inventory has steadily declined during the past several years. In the second quarter of 2012, Metro Columbus had 2,732 distressed listings.
By the second quarter of 2015, the number of distressed listings had fallen to 1,275. This year, we saw only 895 distressed listings during the second quarter.
The drop in distressed inventory is ultimately good news for our past Buyer-Clients and the Columbus real estate market in general. Since foreclosures are typically sold at a discount, primarily due to cosmetic challenges, the presence of foreclosed property can pull down surrounding home values.
Fewer foreclosures mean stronger market values, which is good news for homeowners and home sellers. However, fewer foreclosures and short sales also means less home inventory for Columbus home buyers, especially lower-priced home inventory.
While about 8% of Franklin County homeowners are behind on their mortgage payments, these owners cannot sell unless the lien holder is willing to accept a “short sale” – or force the owner into foreclosure. This often results in a bankruptcy being filed by the homeowner.
Another pool of potential sellers involves those who would like to sell, but are hesitant because they cannot find another suitable home due to low inventory. As a result, these would-be sellers are “sitting on the sidelines” which further limits the available inventory. It’s like a “Catch 22” scenario!
All considered, the reduction in distressed home inventory is just one reason why Metro Columbus home prices are unlikely to see any significant declines in the near future, as long as our local economy remains strong.
At Buyer’s Resource Realty Services, we can show you any home on the market, including homes for sale by owner, for sale by home builder, and homes on the Columbus Regional Multiple Listing Service! We help our Buyer-Clients succeed in all market conditions.
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
