A Short and Sweet Market Update

Here is a brief market update for the Central Ohio real estate market.

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Today I’m bringing you a short, easy-to-understand market update.

Overall in 2017, we saw a 9% increase in prices in Central Ohio. This is an average figure, so some areas are a little bit higher or lower, but you can expect to have an increased equity of 9%. On a $200,000 home, that’s about $18,000, which is huge.

The current days on market is 35 days.

Additionally, if you put your home on the market today, you can expect it to sell in about 35 days.

Hopefully this will help you plan your real estate goals a little better and give you a good reflection of what the market is doing.

If you have any questions or would like to hear specific figures on your own home, feel free to reach out to us. We would be happy to help you.

Is This Another Real Estate Bubble?

Are we headed for another real estate bubble? We believe we have the answer.

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I’ve been getting the question, “Are we in another real estate bubble?” a lot lately. The short answer is no, but here’s why.

The demand for housing in the current market, as opposed to the one 12 years ago, is much different. 12 years ago, the demand was created by the secondary mortgage market, which gave anyone and everyone a mortgage, even if they didn’t have a job or any way to pay it back.

The housing market is much different than it was 12 years ago.

These days, lending guidelines are a lot more strict. The demand for housing this time around is due to real demand from qualified buyers in the market. The biggest issue in this market is that there simply isn’t enough new inventory. This is making things challenging, especially for buyers.

If we see an increased supply of homes and more sellers decide they want to move, we might see an adjustment in the market. However, I don’t predict that happening in central Ohio for at least a few years, if at all. We’re adding a ton of new jobs and there are plenty of people here that are hungry for housing. It will be interesting to see what happens.

If you have any questions for me about the market or you’re interested in buying or selling a home, give me a call or send me an email. I would love to hear from you soon.

Trends and Patterns From the October Market

Today we'll discuss the market stats and trends that we just received for the month of October. You might be interested to see what's happening if you're a buyer or seller.

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I wanted to drop by with an update on the Central Ohio real estate market.

In October, there were 2,574 homes and condos sold in our market, which is a 5.4% increase over the same time last year. However, this marked a 10.3% decline from this September. This decrease is due to fewer homes for sale on the market, not because of softening demand or higher interest rates.

In October, the median home sale price was $169,000, which was a 9.4% increase over the previous year. Remember, the median is the midpoint, meaning half the homes sell for less, while half the homes sell for more. That means that more higher-priced homes are selling this year. The median is a better storyteller than the average.

However, if you're concerned about the average, it went up to $199,000. That's a 9% increase over last October. The number of homes for sale in our market was 5,963, which was a slight decrease from September and a 22.4% drop from the same month last year. We desperately need inventory!

Decrease in sales is due to low inventory, not softening demand or higher interest rates.

There were 2,831 homes and condos added to the market this October, which marks a 2.2% dip, and there are still plenty of buyers out there who want and need good inventory to choose from. It's just another good reason to sell this winter. During October, homes and condos spend an average of just 37 days on the market, which is only three days longer than in September and 13 days fewer than last October.

If you have any questions about our market or you'd like more information about your specific neighborhood, give me a call or send me an email. I'd be happy to help you out.

Where Are Mortgage Rates Headed in Central Ohio?

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Interest rates have been sitting at historic lows for some time now. They're so low that they really can't drop any further, and that has people worried that they will be rising soon.

Your interest rate has a direct correlation with your monthly mortgage, and just a slight increase could cost you thousands of extra dollars over the life of a loan. On a $300,000 home loan, an increase from 4% to 5% will cost you an extra $263.57 per month!

Rates are currently sitting at about 3.75%, but they could shoot up to 4.6% by the end of 2016. This is according to a prediction made by Freddie Mac. Core Logic's latest home price index shows that homes have appreciated by 6.4% on average from this time last year. Homes are expected to appreciate by 4.7% in 2016.

The bottom line is that even a minuscule increase in rates will damage your purchasing power and limit your home buying options. To plan for this market shift you should set up a consultation with me so that we can find you the best home for the best price.

I look forward to hearing from you!

What’s Happening in Central Ohio Real Estate?

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Being a real estate agent, I am constantly asked questions about the real estate market here in Central Ohio. I want you to be as informed as possible, so today I am going to share some of the most common questions I get from buyers.  Here are the top 5 questions that people have been asking me lately:

1. Is it a buyer’s or a seller's market?

Right now, due to low inventory, we are firmly in a seller’s market.

2. What does the current housing inventory look like?

We currently have only about 3.1 months of inventory right now. However, depending on the price range you are looking in, things could be a little different. In the lower price ranges ($150k-$400k), we have even less inventory, and homes are selling almost as soon as they come on the market. In the higher price ranges, we might have over a year’s supply. For a more specific answer that pertains to your house or your neighborhood, let us know and we’d be happy to give you an evaluation.

3. How does the current inventory affect sales prices in the area?

Because there is a shortage of inventory, buyers are competing, and that’s driving up home prices.

4. What are interest rates like?

They are still at historic lows, but have the potential to rise quickly. The Fed is meeting this month to discuss interest rates, so it’s possible that we could see an increase very soon. However, we are going into an election year, and usually during election years rates remain more steady.

5. What does all this information mean for me?

If you’re a seller, you need to make sure you are pricing your property correctly. We are no longer in the spring season, and things have slowed down a bit. However, homes that are priced well and look good online will always sell. For buyers, you have time to take a breath and think about what you’re buying, but there will still be good competition on the best homes. Being pre-approved is essential.

If you have any additional questions regarding the market, feel free to give us a call or send us an email. We look forward to hearing from you!