- Brandon Alfriend
Ohio Real Estate Update | May 2023
Hello Central Ohio! Brandon Alfriend here, bringing you the latest scoop on the Central Ohio real estate market in the exciting Spring/Summer season of 2023. Buckle up, because things are heating up!
According to the Columbus Realtors’ Central Ohio Housing Report, the average sales price for homes in Columbus saw notable increases this Spring, jumping from $315,808 in February to a solid $340,712 in April. While some of this is seasonally driven, home prices are still up 3.6% over the record-setting year of 2022.
Now, you might be wondering if this surge in prices poses a challenge for potential buyers. Well, it does, but fear not! Columbus remains one of the most affordable metros in the US, so there's still hope for those eager to jump into the market.
In fact, Columbus was recently recognized as the 12th emerging housing market by the Wall Street Journal and Realtor.com's Spring 2023 index. This makes it the only city in the top 20 with a population exceeding 1 million. Quite an accomplishment, we must say!
But here's the thing: the competition is fierce out there. With mortgage rates hovering around 7%, fewer new listings are hitting the market compared to last year. Buyers need to act fast to secure their dream home in this vibrant market.
And speaking of listings, there were 2,780 new ones in April, a 23% drop from the previous year when rates were below 4%. This decline in new listings has led to a total inventory of fewer than 2,400 homes in Central Ohio.
Now keep in mind that high-interest rates aren’t just a deterrent for sellers who can’t justify trading in their current low-mortgage home for something new. They’re also keeping many buyers on the sidelines–or at least limiting how much they can afford. Despite home prices continuing to rise (which may also be a product of inflation), they are taking longer to sell and often aren’t receiving multiple offers.
In fact, the average days on market last month was 24–low, but not nearly as low as the 13-day average we hit last April. Similarly, the average home in 2023 is selling 0.1% below asking price compared to 2.9% over asking price in 2022. It’s still a good market, but not great one.
Perhaps the scales are finally being tipped in the favor of buyers for the first time in nearly a decade. The market is more balanced now than it has been in a long time, but since inventory is still so low, Central Ohio is still considered a seller's market for the time being.
If you have any questions about real estate in Central Ohio or if there are any other topics you’d like me to feature in the monthly newsletter, please don’t hesitate to reach out. I love hearing from you all! So until next time, stay classy Columbus.