The 2019 real estate market finished strong in Central Ohio. Our strong housing market reflects the strength of the nationwide economy and low unemployment, which fell to 50-year lows.
Strong employment, increasing wages, and low mortgage rates created new home buyers or brought buyers back into the market. This was the case for most of the U.S. including the Columbus area.
“With a strong economy and low mortgage rates, buyer activity has been strong,” said Andy Mills, Columbus REALTORS® 2020 President.” However, central Ohio has been constrained by inventory levels that are still below historical norms. With supply and demand continuing to favor sellers, prices have been rising steadily.”
Compared to the prior year, inventory in 2019 fell by 6.2%. Supply continues to decline, pushing prices even higher. In 2019, the median sale price increased 7.6% to $209,900. Home prices increased by 7.5% compared to 2018.
Homes In Contract increased 2.8%, and Closed sales increased by 1.8%. That makes 2019 the second strongest year for home sales.
We can see that the lower-priced homes are driving this strong seller’s market in Columbus.
Homes priced below $350,000 sold in an average of 27 days in 2019.
Homes priced from $350,000 and $500,000 sold in an average of 46 days. Homes priced from $500,000 to $700,000 sold in about 65 days.
The highest-priced home, those over $700,000, took an average of 89 days to sell.
Months of inventory also highlight how competitive the market is in the lower price points. Months of Inventory for homes under $350k was 1.2 in December 2019, while Months Of Inventory for home over $700k was 5.4 for December 2019.
A look at foreclosures shows the stark difference between this housing market and the market before the crash. Foreclosures have continued to decline and show no resemblance to the conditions during the housing bubble. The percentage of foreclosures or short sales in 2019 was only 2.5% of the market. That’s very low.
While new home construction is up, it is still far below what is needed to fully supply the market. Builders face a number of headwinds and have underbuilt for years. This means low inventory will likely continue Seller’s Market.
“Tight inventory continues to constrain buyer activity in some parts of the Columbus Region, while other areas, we are seeing increased seller inventory starting to improve buyers’ choices,” said Mills.
“As we look at 2020, we see continued low mortgage rates and a healthy economy giving a great start to housing in the new year.”
Look At Columbus Real Estate Go!
Home prices are on the rise and home values are expected to continue to move up! Check out these charts from Columbus REALTORS® that show the market from 1995 until 2019.
More Columbus Realtors® Reports:
Your Columbus Ohio REALTORS®
If you’re thinking about buying or selling a home in 2020, call or text Realtor Karen Smith at 614-517-4916 to get started. Karen and the Smart Move Group have years of experience in Columbus Real Estate. But, don’t take our word for it. Give our reviews a read and see what our clients are saying about buying and selling with help from the Smart Move Group.
