Columbus home buyers start year with jumping prices, few choices
For Columbus-area home shoppers, 2022 started exactly where 2021 left off, with leaping prices, few choices and more competition from investors.
The median sales price of a Columbus-area home in January was $250,000, up from $225,000 a year earlier and $197,000 two Januaries ago, according to the Columbus Realtors trade association.
Despite some signs in the fall that the housing market may be calming, sellers remain firmly in the driver’s seat in Columbus, as demand continues to outpace supply.
As of Thursday, 1,460 homes were actively listed in the Columbus area, about half the number available two years earlier, before the pandemic took hold.
“Extremely tight inventory conditions aren’t holding back the booming housing market at the beginning of the year,” said Senior Zillow Economist Matthew Speakman.
“After a modest slowdown to end 2021, home price appreciation has re-accelerated to begin the year. Combined, these figures clearly demonstrate that competition for housing remains essentially as hot as ever.”
Buyers also increasingly must compete against investors. According to the National Association of Realtors, investors or second-home buyers bought 22% of homes in January, up from 17% in December and 15% in January 2021. Cash sales accounted for 27% of January sales, up from 23% in December and 19% in January 2021.
January’s housing figures continue the momentum of a record-setting 2021 for Columbus-area real estate. The year saw an unprecedented number of homes sold, for record prices and at a record pace.
The Columbus housing market was hot before the pandemic propelled it into overdrive, as stay-at-home workers looked for more space and low interest rates gave them more purchasing power.
Mortgage rates have escalated sharply over the past three months, rising almost 1 point to an average of 3.92% for a 30-year loan. While rising rates ultimately may dampen demand, they may now be accelerating it as buyers seek homes before rates rise more.
“Buyers were likely anticipating further rate increases and locking-in at the low rates,” said Lawrence Yun, chief economist with the National Association of Realtors.
The number of homes available nationally fell to a record low in January, prompting some buyers to give up the quest, at least for now.
“We’re seeing some buyers get discouraged due to lack of inventory,” noted Columbus Realtors President Sue Van Woerkom.
Experts say they expect more homes to come on the market this year, holding out some hope for buyers.
“It’s crystal clear at this point that the market is starving for more inventory,” said Speakman, with Zillow.
“The good news is there are multiple directions from which additional inventory might come, however slowly: From new construction, from an aging (Baby) Boomer population choosing to downsize and list their homes, from people feeling more confident listing as pandemic fears subside and/or from those sellers looking to capitalize on huge gains in equity over the past few years.”
@JimWeiker
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