We’ll start with the silver lining. Out of the 7,519 homes sold in the fourth quarter of 2017, only 361 of them were foreclosure sales. Distressed home sales at the end of 2017 represented only 5.3% of inventory, down from 8.9% in 2016.

Distressed inventories were abnormally high for years following the Great Recession, but are steadily closing in on historical norms. This benefits home values, but it means home buying bargains will be harder to find!

Looking at the market as a whole, January 2018 home inventory is down 21.2% from a year ago. Homes spent an average of 44 days on market, compared to 50 days in January 2017. Average home prices pressed higher, increasing by 5.8% to $205,779.

Fear not, the sky isn’t falling for Columbus home buyers! Remember that statistics never tell the whole story, since they are driven by Multiple Listing Service data. In short, if a listing agent isn’t involved, the property is “off the books” of the MLS. This means that homes For Sale by Owner, and new construction for sale by builders, isn’t included in the inventory figures.

And while some homeowners may not be in a hurry to sell today, there are many reasons a home can end up on the market. Here’s just some of them:

• Income loss or other personal hardship
• Death of homeowner – estate sale
• Job transfer
• Military transfer
• Divorce
• Changes in household formation
• Retirement/downsizing
• Moving closer to family

Listing agents would have you believe that profit is the sole motivation behind a home sale! It isn’t. Certainly, home sellers want to make profit whenever possible, but life changes are often the real impetus behind a sale.

Some homeowners may be feeling held back, despite the market conditions. Some may remain upside-down in equity, if they purchased at the peak of the market and were over-leveraged. Others may have purchased at an advantageous price and have an enviable interest rate, making for a low housing payment they couldn’t duplicate today.

All that aside, the Columbus real estate market is always changing, and every community has market conditions that vary by neighborhood, and even street by street. If you’ve been conducting online home searches on your own, you may never be able to “catch up!”

Plus, you are unlikely to find the FSBO and builder homes for sale that we can locate for you, and show to you! Because we only represent Buyer-Clients, and don’t harass these sellers to market their listing, they welcome us with open arms.

And because we have broker-level access to the Columbus Regional Multiple Listing Service, we can conduct a more through, effective home search than the public. This can save you time and an enormous amount of frustration, because we can find information that isn’t available to the public – such as adverse conditions, contract status, and price change history.

If you are serious about buying a Columbus home, begin by becoming our Buyer-Client! We will help you with your home search, and provide you with fiduciary representation throughout the home buying process. This protects you from over-paying for a home, and from contractual missteps and pitfalls.

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-M, CNE, 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

The post As Columbus Home Inventory Tightens Up, Buyers Should Buckle Down appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.

Mortgage Rates, Rules and Columbus Home Buyers

Mortgage interest rates are moving off their lows – and are expected to trend higher throughout the rest of 2013. Freddie Mac’s weekly mortgage survey shows 30-year fixed rates averaging 3.53%, and 15-year rates averaging 2.81%. Please remember that the rate you qualify for, depending on your credit score and other criteria, could be different. The financial markets also have a bearing on rates, and this is why today’s rate environment shouldn’t be taken for granted.

There are other changes that affect the cost of getting a mortgage. FHA-backed mortgages are seeing an increase in mortgage insurance premiums this year. The premium is tacked on to your monthly mortgage payment. Also new this year – is the permanent nature of the mortgage insurance which can no longer be waived after you reach a certain amount of equity – it’s with you for the life of the loan.

The Consumer Protection Act presents another new wrinkle in mortgage lending. The intent of this law is to eliminate the kind of risky mortgages that lead to the housing downturn. What it means is that complex mortgage underwriting is here to stay. Bankers must prove that borrowers have an ability to repay the debt, not only at the time of loan origination, but also through the life of the loan. This will probably hit self-employed home buyers the hardest, along with anyone with variable year-to-year income. Showing a consistent income is key.

Columbus Home Inventory Low; Buyer Expectations High

The inventory of Columbus homes for sale is at a 10-year low. There are a few reasons why: home demand is up with the slowly improving Central Ohio economy, but many homeowners are unable to sell because of little or no equity or being “upside down” – owing more than it’s currently worth. At the same time, we have fewer foreclosures coming on the market now than the all-time high during 2010.  Many distressed homes that come to market are under-priced or at today’s fair market value which is leading to multiple offers which are close to or above initial listing prices by cash buyers, fully pre-approved owner occupants and even investors.

What all of this means is – we could see a very competitive spring for first-time home buyers in Columbus! There are and will be affordable homes on the market – but to find them and successfully bid on them – you will need the expert guidance of an Exclusive Buyer’s Broker!

At Buyer’s Resource Realty Services, we exclusively represent Columbus home buyers! We give you the market advantage you need to obtain the best home at the best possible price. You can get started right away; download our free e-book for immediate access to home buying strategies!

Contact us for home buying help today!

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

The post Why the 2013 Columbus Home Market is a Whole New Ballgame for Home Buyers appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.