Central Ohio Housing Report | August 2020
The real estate market in Central Ohio is still booming! Prices again reached and an all-time high in July 2020 with an average sale price of $278,044, a 10.4% increase over last year. In addition, for the first time ever, most homes sold for more than they were listed for with an average sale to list price ratio of 100.5%. These year-over-year increases are unprecedented, and the direct result of COVID-19.
As I have mentioned in previous updates, home inventory dropped significantly with the onset of COVID-19. For most of March all the way through June, the number of new listings was down significantly - nearly -25% compared to last year. This created a supply-squeeze which was partially offset by similar demand-squeeze on the buyer side. In other words, home prices remained relatively stable in the Spring months because the number of buyers on the market also decreased. But as life slowly but surely goes back to "normal", the number of buyers has increased drastically while home inventory is still extremely low - hence most homes being sold above list price.
“For most buyers paying more than the list price goes against the grain as negotiation is traditionally a part of the home buying process,” said Andy Mills, 2020 Columbus REALTORS® President. “However, due to high demand and low supply, competition is stiff so buyers must decide how much the home is worth to them when deciding how much to offer.”
Couple this with record-low interest rates and you have the most epic seller's market in Central Ohio history.
The question now is, what's next? As things start to normalize, the home inventory shortage we've been experiencing since March will come to an end. Over the last 2 weeks, the number of new listings is actually up 3.4% compared to last year. While it will take a lot more than that to shift this market, I do anticipate a mass influx of new listings in the near future. COVID-19 and the election will likely play a roll in when this influx occurs - either this fall or mid-2021.
In the meantime, if you're a homeowner, it's best to just sit back and enjoy the ride. And if you're looking to sell, now is the best time to do so in modern history. As always, our flat-fee listing service is just $2,500 and you choose the buyer agent's commission! Our clients have saved an average of $12,085 in realtor commissions this year.
Columbus Area Housing Market Statistics, July 2020
Data by Columbusrealtors.com