Central Ohio and Columbus Housing Market September 2019

Homes for sale decreasing again

Last year, August marked the 92nd consecutive month of year over year declines in inventory. After seven months of increased supply, central Ohio now has five months of year over year inventory decreases under its belt again this year.

There were only 3,690 central Ohio homes and condos added to the market during the month of August which was 4.6 percent fewer than July and 3.4 percent behind the same month a year ago.

The added inventory brought the total number of homes and condos for sale in central Ohio up to 5,187 which was up 3.6 percent over the previous month, but down 4.5 percent from August 2018.

Given the low unemployment, wage growth and low interest rates, most economists today don’t foresee a recession in the near future. However, the housing market along with the economy is cyclical and a market correction is inevitable at some point.

“The shortage of homes for sale actually works in favor of the housing market,” said John Myers, 2019 President of Columbus REALTORS®. “Lower housing supply up against strong buyer demand as well as record home equity would cushion the effects of any recessionary activity we might see.”

There were 3,230 central Ohio homes and condos sold during the month of August which was down 0.6 percent compared to the same month last year and 3.1 percent lower than July 2019.

The average price of a home sold in central Ohio year to date (January through August) climbed to $243,558, an increase of 6.3 percent over August 2018. The median price of a home sold during the first eight months of the year was $211,000, up 8.2 percent from the previous year.

There were 3,334 central Ohio homes and condos sold during the month of July which was a 3.3 percent bump from June and almost four percent higher than a year ago.

Of those sales, about 2,800 were single-family homes and just over 500 were condominiums according to the Columbus REALTORS® Multiple Listing Service.

“The new condo guidelines released by HUD last week could help would-be buyers become eligible for an FHA-backed mortgage,” said John Myers, 2019 President of Columbus REALTORS®. “Condos are often the most affordable, attractive option for first time home buyers.”

“These new rules have the potential to transform our housing market and regional economy, easing affordability constraints, maximizing first-time homebuyer assistance programs and putting homeownership in reach for countless families that would have continued to be denied this critical wealth-building opportunity.”

There were 3,868 central Ohio homes and condos put on the market during the month of July which is down slightly from last month and last year.

Even with the lackluster number of new listings, the total inventory of homes for sale last month climbed to 5,009, the highest this year, but still 3.4 percent behind 2018.

During the month of July, the median sales price of a home was $220,000, an increase of 7.3 percent over July 2018. The average sales price in July was $251,936, up 5.6 percent from a year ago.

Year to date (January through July), the median sale price ($210,900) is up 8.2 percent and the average sales price ($242,899) is up 6.2 percent and the from the same period one year ago.

“Even though homes are selling for higher prices due to the lack of inventory and strong demand, sellers need to be realistic when pricing their home,” added Myers. “Homes priced too high over their competition will usually sit on the market longer which can be a deterrent to would-be buyers.”

“That’s why it’s critical that sellers consult with a REALTOR® when marketing their home.”

 

Franklin County Board of Commissioners issued the following update, "On Tuesday, the Franklin County Board of Commissioners unanimously approved a plan to invest approximately $65 million over the next ten years in affordable housing in central Ohio to create more than 2,000 new affordable housing units. The initial plan was created earlier this year at the commissioners’ request by the County Economic Development and Planning department as part of that agency’s new five-year strategic plan, and the vote comes after three public hearings on the matter. Funding for the initiative will be through the real estate conveyance fee, which the commissioners voted to increase by one dollar for every $1,000 in sale amounts.

The real estate conveyance fee is paid by people who are selling a property and includes a state-mandated amount of one dollar per $1,000 in the sales price. Franklin County charges an additional dollar, and that money already goes to affordable housing efforts.

Columbus REALTORS® remained neutral on the increase. President John Myers testified at a public hearing on Aug 13 saying, “Columbus REALTORS® is grateful to have been included in the conversations from the beginning. Although we don’t have a formal position on the conveyance fee increase, our membership fully recognizes we must be part of the housing affordability solution. Columbus REALTORS® Foundation recently made a $300,000 commitment to the South Side Renaissance which supported the rehabilitation of 45 single-family affordable homes along with another $40,000 donated this year alone to local non-profit housing organizations as a small part of our commitment to housing affordability.

Continuing to burden property owners with additional fees and costs, at all levels of governments, is something our organization and members takes seriously. We recognize raising fees is never easy and rarely popular, however nearly 14 years ago Columbus REALTORS® supported the additional dollar increase, as it went to support housing affordability, specifically the Affordable Housing Trust and Community Shelter Board. Any increase in the conveyance fee, on property owners, should again only be allocated to supporting housing affordability.

I want to reiterate our commitment to housing affordability, not only thru our continued community financial commitment but also by being a good community partner.”

The fee will affect all property transfers starting October 7, 2019.