Central Ohio Real Estate Update, January 2020
It's the twenties (again) and the real estate market is off to an epic start with vast gains across all 5 major housing metrics versus January 2019! The biggest contributor by far is the increase in inventory. A common complaint of home buyers over the past few years has been the lack of homes for sale, but this is starting to change.
Andy Mills, President of Columbus REALTORS, recently said, “The infusion of new inventory helped feed the strong appetite for homes in central Ohio. Over two-thirds of the homes, we had for sale last month was either put in contract or sold.”
But as inventory increases, one must wonder, how sustainable the market actually is. Is this increase in homes for sale a sign that the seller's market is coming to an end or is it simply an anomaly? While some economists view market conditions in 2020 to be ominously comparable to 2008, there are many differences. Most notably, mortgage debt doesn't appear to be a major issue any longer.
With that said, there is a lot of capital tied up in the stock market, which has been on a record-long rally since 2011. If this bull market comes to a sudden close, it could have ripple effects on the housing market. In addition, the Fed's go-to recession antidote of lowering interest rates likely won't be an option, as rates are already near all-time lows.
But enough postulating...for the time being, the real estate market in Columbus is thriving, and empirically speaking, now more than ever is a great time to sell your home.