Columbus Real Estate Update- Winter 2007

In 2006 the Central Ohio housing boom that had moved steadily upward slid to a halt, and a Buyer’s Market began.  Home inventory increased, and homes ranged from 11 to 31 percent higher (depending on the month) from the same time the year before.  At the end of December 2006, housing inventory was 11.6% higher than December 2005. This amounted to 15,613 homes, which represented at 9.4 month supply (compared to a December 2005 7.65 month supply).

Home sales in 2006 were ahead of 2005 sales numbers (which was the ALL-TIME record breaking year) until June.  From that point, sales totals gradually decreased each month through the end of the year.

Sounds pretty gloomy, doesn’t it?

It’s the old ‘glass half-empty or half-full’ situation.  We sold 26,251 homes in 2006. That makes 2006 our third highest sales year in the Columbus/central Ohio area (with 2004 being our second highest year). 

The average sales price of a home in the Columbus and surrounding areas for 2006 was $174,688.00 (compared to $177,978.00 in 2005).  Average days on market (DOM) for 2006 was 97.2 days (11 days longer than 2005).

Looking Ahead…

Industry predictions for the Columbus area are for a modest year in 2007, with slight gains in appreciation and home sales.  People are still saying “Buyer’s Market” for the next year, but the market should balance out a bit better between buyers and sellers. Interest rates may slowly rise throughout the year to a projected high of 6.7% by the fourth quarter of 2007.

(On a personal note, I have to stress that good homes are selling. I’ve faced several multiple offer situations and clients have ‘lost’ several homes when the homes quickly went in contract. Stage your home properly, do the right updates, price it right– and you are going to sell.)