Overview of Central Ohio Market Performance
After experiencing two months of growth, the real estate market in Central Ohio has seen a slowdown. March witnessed a 3.7% decrease in the number of closed home sales, following significant increases earlier in the year. Specifically, there was a 10.8% jump in sales from February 2023 to February 2024, and a 10.3% rise in January 2024 compared to January of the previous year. This decline mirrors national trends, which also showed a roughly 4% drop in sales of existing homes during the same period.
Economic Factors Influencing the Market
The recent dip in home sales in Central Ohio can be attributed to several economic variables:
- Inflation Concerns: Recent reports indicate a rise in inflation to 3.5%, reversing what had been a decreasing trend. This increase in inflation is noteworthy and is closely watched by market analysts.
- Mortgage Rate Predictions: With inflation rising, mortgage rates, which have been fluctuating between 6% and 7% during the early months of 2024, are expected to climb. Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, commented that the inflation news could lead to higher mortgage rates, potentially discouraging some prospective buyers.
Inventory and Pricing Trends in Central Ohio
Despite the slowdown in sales, the total housing inventory has increased, providing more options for potential buyers:
- Local Inventory Growth: In March, there were 2,754 listings, marking an 18% increase from March of the previous year. Franklin County specifically saw a 13% rise in inventory compared to last year.
- National Inventory Trends: According to National Association of Realtors (NAR) data, the inventory across the U.S. is up by approximately 14% from last March.
Sales Prices in Central Ohio
- Median Sales Price: In Franklin County, the median sales price of homes reached $305,000. Across the broader Central Ohio region, the median was slightly higher at $310,000, reflecting an 8.4% increase year-over-year.
Market Velocity
Homes in Central Ohio stayed on the market for an average of 33 days. Notably, 62% of all homes sold in March were on the market for 30 days or less, indicating that while overall sales have slowed, many homes continue to sell relatively quickly.
Implications for Central Ohio s Sellers and Buyers
For sellers, the increased median sales prices and quick turnovers for many listings indicate a still-competitive market, especially for well-priced and well-positioned properties. Buyers, however, may face challenges due to rising prices and potential increases in mortgage rates, but they benefit from a larger selection of available properties due to higher inventory levels.
How Sell for 1 Percent Can Help
At Sell for 1 Percent, we provide full-service brokerage at just 1% commission, significantly lower than the typical 3% rate, saving our clients thousands of dollars in the process. Whether you are buying or selling in these fluctuating market conditions, our expertise and cost-effective services can provide substantial financial benefits and support through every step of the real estate transaction.
By understanding the latest market trends and economic factors, both buyers and sellers can make informed decisions to maximize their outcomes in the Central Ohio real estate market.
