Report finds Americans are optimistic about buying a home in 2024
After years of feeling priced out of the market, potential homebuyers are feeling optimistic again, according to a new report.
Scripps News
Central Ohio home shoppers are getting a summer surprise: A lot more homes to choose from.
As of Thursday, 6,356 homes were actively on the market in the Columbus area, compared with 3,678 a year ago — a 73% jump and the highest level in at least seven years, according to the Columbus Realtors trade association.
The number of homes for sale — called inventory — has been rising throughout the year but took a huge jump this month as homeowners, weary of sitting on the fence, posted for-sale signs.
“There have been a lot of people sitting on the sidelines wondering what to do and when,” Columbus Realtors President Scott Hrabcak said. “Now they’re ready to make changes.”
Hrabcak called the jump in home-listing numbers “eye-popping but good. … Consumers need choices and this is a positive sign for the marketplace. Inventory has definitely needed a boost for a long time, and I think this will lead to a very busy summer for the market.”
Home prices hit record: Columbus-area home prices top record high for 2023
It’s not just luxury home listings that are rising. Last year at this time, 322 single-family homes and condos were listed between $200,000 to $250,000 throughout all of central Ohio. Now, 681 are listed in the same range — more than double.
One next step up, from $250,000 to $300,000, the number of listings leapt from 367 a year ago to 767 today.
And on top end of the market, $500,000 and up, listings rose from 966 a year ago to 1,717 now.
The numbers cover listings in Franklin and contiguous counties, in addition to Marion, Morrow and Union counties and parts of outlying counties such as Hocking, Knox and Ross.
The climb in inventory is a welcome shift for buyers who have been on the short end of the bargaining stick for several years.
“We’re moving from a sellers’ market slowly to a more neutral market,” said Howard Hanna agent Terry Penrod. “It creates a bit of comfort. We don’t have to write offers on the back of our cars all the time. Multiple offers just aren’t as common.”
Columbus-area home prices are still rising, but nothing like the double-digit climbs that were common before mortgage rates jumped in 2022. The median sales price in May was $330,000, up from $320,000 a year earlier, a 3% climb more in keeping with historic rates of growth.
The rise in inventory will help dampen price hikes, but buyers shouldn’t look for prices to actually decline in the Columbus area, say experts.
“None of the trends would tell us that housing prices will be dropping soon,” said Hrabcak. “Prices are not going to go down. Prices are not going to go down.”
Columbus-area homes are still selling quickly, at 22 days on average in May, but not quite as quickly as as year ago, when they sold in 20 days, or two years ago, when they were gone in 12 days.
Central Ohio home sales remain strong but mortgage rates continue to take a toll on entry-level buyers. Rates have dropped slightly from their peak last fall, but remain elevated: The average rate for a 30-year mortgage this week was 6.87%, according to the federal mortgage agency Freddie Mac.
Rising rates are widening the gap between those who can afford a home and those who can’t, said Lawrence Yun, chief economist with the National Association of Realtors.
“The mortgage payment for a typical home today is more than double that of homes purchased before 2020,” Yun said.
But, he noted, a rise in listings will help.
“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” he said.
jweiker@dispatch.com
@JimWeiker