What’s Happening in the Columbus Housing Market?

Interest Rates Remain a Key Factor

As of mid-November, mortgage rates are hovering in the high 6% to low 7% range. While rates have increased slightly, this shift has brought notable changes to the market dynamics. Gone are the days of paying $50,000 over asking price or waiving every contingency. Today’s buyers have more negotiating power, and sellers can still achieve top dollar with the right strategy.

Inventory in Columbus Is on the Rise

We’re seeing more homes on the market compared to the frenzied pace of the past few years. This increased inventory gives buyers more options and allows sellers to position their homes competitively to attract serious offers. For both buyers and sellers, the key is adapting to these new conditions with informed, strategic decisions.

Opportunities for Buyers in Columbus

More Negotiation, Fewer Bidding Wars

For buyers, the current market offers a chance to purchase a home without the pressure of competing against multiple offers. Inspection contingencies and remedies have made a comeback, and buyers are often able to secure properties at or below asking price. This shift provides a window of opportunity to find your dream home without overpaying.

Why Now is a Great Time to Buy

Even with slightly higher interest rates, today’s buyers can avoid the inflated prices seen in recent years. And remember, refinancing options may become available in the future if rates drop. In the meantime, locking in a home at a fair price sets you up for long-term equity gains.

Opportunities for Sellers

Homes Are Still Selling for Top Dollar

Despite market shifts, Columbus remains a strong market for sellers. Well-priced homes in good condition are attracting serious buyers. While you may not see a sale within hours of listing, most homes are selling within a few weeks at competitive prices.

Setting the Right Expectations

The market is stabilizing, which means sellers need to adapt their strategies. At Sell For 1 Percent, we help you create a tailored game plan to showcase your home’s value and attract the right buyers. Whether it’s professional marketing, pricing strategies, or expert negotiations, we ensure your home sells for top dollar with less hassle.

Why Choose Sell For 1 Percent?

At Sell For 1 Percent, we’re more than just a real estate brokerage—we’re your trusted partner in navigating the Columbus housing market. Our full-service approach ensures you receive all the benefits of traditional real estate services while saving thousands with our 1% commission model.

How We Deliver Value:

• Technology-Driven Marketing: Your home gets maximum exposure through cutting-edge digital tools and platforms.
• Expert Guidance: With years of experience in the Columbus market, our team provides tailored advice to achieve your goals.
• Transparent Savings: Our 1% commission model means more money stays in your pocket.

Ready to Buy or Sell?

Whether you’re looking to buy your dream home or sell your property for top dollar, the team at Sell For 1 Percent is here to help. Our innovative approach ensures a smooth and successful transaction, no matter the market conditions.

Contact Us Today

Call or email us to learn how we can help you make the most of today’s real estate opportunities. Let’s get started on your journey to success!

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What Happens to the Housing Market During Election Years?

A History of Calm Amid Election Cycles

Historically, the real estate market often slows in the months leading up to a presidential election. Buyers and sellers adopt a “wait and see” approach, creating a brief pause as people await election outcomes and possible policy changes. However, once the election is over, the market tends to pick up as the uncertainty is resolved.

Looking back, we see this pattern repeat. In 2016, after the election dust settled, Columbus real estate experienced renewed activity, driven largely by a steady economy and low-interest rates. Similarly, in 2020, while the pandemic created challenges, the market quickly rebounded post-election, with low mortgage rates fueling a strong seller’s market.

Why Do Election Years Influence the Market?

Political transitions bring the potential for economic policy changes, impacting everything from tax laws to mortgage rates. People naturally pause big decisions, especially those with financial risk, to see how new policies could affect their personal finances. For example, if tax breaks for homeowners or first-time buyers are anticipated, it may delay buyer activity until after the election. Conversely, if housing policies or mortgage rates are expected to shift, sellers may accelerate their listings before the changes take effect.

How the 2024 Election is Shaping the Columbus Real Estate Market

Interest Rates and Economic Indicators

This year, the economy has shown mixed signals. Nationally, recent reports show low job creation numbers, a shift many attribute to factors like recent strikes and weather events. However, mortgage interest rates remain near 7%, affecting affordability for some buyers. The Federal Reserve’s decisions on rate cuts, potentially on the horizon, may offer relief and stimulate buyer interest.

Columbus Market Resilience

Here in Columbus, despite the larger economic backdrop, homes are still selling. While inventory has reached a six-year high, the demand remains strong, with competitively priced homes still attracting multiple offers. We’re seeing two months of housing supply, marking a healthy, albeit slightly slower, market compared to previous years. What this tells us is that the fundamentals remain sound, making it an excellent time for those who are ready to buy or sell.

Buyer and Seller Tips for Navigating an Election Year Market

For Sellers: Embrace the Opportunity

If you’re considering selling, now is a great time. Despite fluctuations, Columbus remains a seller’s market in many areas. With Sell For 1 Percent, you benefit from our 1% commission model, allowing you to keep more of your hard-earned equity. Leveraging the latest technology, we market your property effectively to reach serious buyers quickly and efficiently.

For Buyers: Get Pre-Approved and Start Watching Rates

With inventory up, buyers have more choices and time to make informed decisions. If you’re shopping for a home, we recommend staying in close contact with your lender and realtor to watch for potential rate changes after the election. At Sell For 1 Percent, we can connect you with trusted lenders and provide the latest updates on rates and housing inventory.

What Can We Expect After the Election?

As we’ve seen in past cycles, we can expect some pent-up demand to be released once the election concludes. Typically, buyers and sellers who were in a holding pattern will re-enter the market, often leading to a slight uptick in activity. Whether Democrat or Republican, historical patterns show that housing market fundamentals often hold steady post-election, with any adjustments occurring gradually rather than overnight.

The Sell For 1 Percent Advantage: Full-Service Real Estate at Just 1% Commission

Navigating an election year market can feel daunting, but with the right partner, it’s an opportunity. At Sell For 1 Percent, we’re a full-service brokerage that utilizes technology to streamline the selling process, saving our clients thousands with our 1% commission model. We handle everything from professional marketing to negotiations, ensuring your home sells quickly and at the best price.

Ready to Sell Your Home?

If you’re thinking about selling, don’t wait. The current market conditions present a fantastic opportunity to list your home and benefit from high demand and limited competition. Reach out to our team at Sell For 1 Percent today and experience the benefits of our full-service approach with only 1% commission.

Let’s make your real estate goals a reality — election year or not. Contact us today to learn more about our innovative approach and how we can help you save.

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In today’s market, understanding why this shortage persists can make all the difference when you’re ready to sell.

What’s Driving the Housing Shortage?

Underproduction of Homes

For years, home construction hasn’t kept up with the growth in households. According to industry insights, while 1.4 million homes were built in 2022, the U.S. added 1.8 million households. The gap between demand and supply has only grown, especially here in Ohio, where demand for homes continues to rise as more people move in, forming new households faster than new homes can be built. This imbalance makes today’s market a seller’s advantage.

Rising Costs and Supply Chain Challenges

Rising building costs and supply chain issues that intensified during the pandemic have slowed new home construction. High material prices, labor shortages, and logistical delays have made it more difficult for builders to keep up, meaning fewer homes are being added to the market. Ohio homebuyers are feeling this impact as new construction remains limited, making existing homes even more desirable.

Regional Imbalances in Demand

Some areas are seeing more demand than others, especially Ohio cities with job growth and desirable amenities. However, the number of new building permits often lags behind the pace of this growth. This regional disparity means that the most popular areas remain tightly competitive, with many buyers vying for the same properties.

How Big Is the Housing Shortage?

The U.S. is estimated to be short by about 3.3 million homes. Experts predict that over the next decade, the country will need nearly 18 million new homes to meet future demand. In Ohio, this shortage offers a unique selling point for homeowners who are ready to list. With not enough homes to meet current or projected demand, today’s market creates an opportunity for sellers to shine.

Why This Market Is a Win for Sellers

For those thinking about selling, this shortage can work in your favor. Fewer homes mean that buyers have limited choices, and they’re willing to act quickly on the right property. If your home has been on the market for a while, know that the extended inventory gap will continue to bring motivated buyers to your door, often competing with each other and putting upward pressure on prices.

What Buyers Are Facing in Today’s Market

In today’s market, buyers face unique challenges due to the lack of inventory. With limited options, buyers are often competing for the same properties, which can lead to quicker offers, higher prices, and an urgency to act fast. For homeowners looking to sell, this competitive environment can result in higher offers and more favorable terms.

How Sell for 1 Percent Realtors Can Help You Sell in Today’s Market

As a seller, you want an experienced real estate agent who understands local trends, pricing, and how to best showcase your home. At Sell for 1 Percent Realtors, we’re a full-service brokerage that leverages today’s technology to save you thousands of dollars by selling your home for just 1% commission. With our expert knowledge of the Ohio market, we help you take advantage of today’s market, giving your home the competitive edge it deserves.

Bottom Line

Even though there are more homes for sale than there were last year, the market is still in your favor. With a shortage of homes, demand is high, and buyers are ready. If you’re considering a move, call Sell for 1 Percent Realtors today. We’ll help you make the most of today’s market, saving you money and ensuring a successful sale.

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Homeownership and Mortgage Trends

According to an analysis by Realtor.com, 60.2% of U.S. homeowners have a mortgage, while 39.8% own their homes outright. The share of mortgaged homeowners versus those who own their homes outright can vary significantly from state to state. Unsurprisingly, areas with a higher percentage of mortgaged homeowners are more likely to be affected by interest rate movements compared to regions where outright ownership is more common.

For example, Washington, D.C., has the highest percentage of owner-occupied homes with a mortgage at 77.3%, followed by Maryland at 70.7%, Colorado at 69.1%, and Utah at 68.1%. Conversely, West Virginia, Mississippi, and Louisiana have some of the lowest percentages of homes with mortgages, at 44.4%, 48%, and 51.7%, respectively.

Correlation Between Homeownership and Age

Interestingly, the Realtor.com report also found that markets with higher homeownership rates tend to have a greater share of outright ownership. There is a strong correlation between the prevalence of outright homeownership and the proportion of older homeowners, particularly those aged 65 and above. As homeowners age, many pay off their mortgages, resulting in an increasing share of homes owned free and clear.

Additionally, the share of homeowners carrying mortgage debt has been declining in recent years. In 2010, 67.2% of homeowners had mortgage debt, while 32.8% owned their homes outright. Today, the gap is closing, with outright homeownership on the rise.

Mortgage Rates: The Volatility Factor

Despite the recent interest rate cuts and fluctuations in the 30-year fixed-rate mortgage, the path forward for mortgage rates is uncertain. The average 30-year fixed-rate mortgage fell from 6.8% in 2023 to 6.1% as of early October, but rates have since increased to about 6.6%, according to data from Zillow.

This volatility can have a significant impact on homebuyers’ monthly payments, making it difficult to predict long-term affordability. As Zillow researchers noted, “Recent fluctuations in mortgage rates are causing potential monthly payments to shift quickly for homebuyers.” This can also affect current homeowners deciding whether to refinance, as changing rates could alter the math on whether refinancing would provide any meaningful savings.

Moreover, there is no guarantee that mortgage rates will continue to fall, even if the Federal Reserve cuts its key interest rate further. The uncertainty in rate movement means potential buyers must stay informed and consider multiple factors when making a decision to buy or refinance.

Mortgage Application Trends

Data released by the Mortgage Bankers Association (MBA) shows that mortgage applications decreased by 5.1% in the week ending Oct. 4, 2024, compared to the previous week. Additionally, the MBA’s Refinance Index dropped by 9%, although it was 159% higher than the same time last year. Meanwhile, the Purchase Index increased by just 0.1% from the previous week but was 8% higher than the same week in 2023.

Mike Fratantoni, MBA’s senior vice president and chief economist, emphasized that while mortgage rates are a significant factor in homebuying decisions, they are not the only consideration. The largest constraint for many prospective homebuyers has been a lack of inventory. However, with more homes available in many markets and mortgage rates still relatively low compared to recent history, some buyers are moving ahead with their plans.

Conclusion: What It Means for Buyers and Sellers

While interest rate cuts have provided some relief, the housing market remains complex and highly localized. Areas with a high percentage of mortgaged homeowners are more likely to feel the effects of rate changes, while outright homeowners may be less impacted. Additionally, fluctuations in mortgage rates can lead to uncertainty for both homebuyers and those considering refinancing.

At Sell For 1 Percent, we understand the challenges of navigating a fluctuating housing market. We specialize in helping our clients buy and sell homes with ease, offering full-service brokerage support at just 1% commission—saving you thousands. Whether you’re looking to take advantage of current market conditions or explore your options for buying or selling, we’re here to guide you.Contact us today at Sell For 1 Percent or call 614-451-6616 to learn how we can help you achieve your real estate goals in these uncertain times.

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Amplify Your Down Payment Potential

For first-time buyers, making the most of your down payment is crucial. Luckily, there are a variety of programs and loan options designed to help you get into a home with a lower upfront cost. Some loans require as little as 3% down, while certain qualified borrowers—like Veterans—might even qualify for 0% down.

In addition to loan programs, down payment assistance in the form of grants and other financial aid is available. These options can drastically reduce the amount of money you need to save before buying a home.

If you’re curious about what programs might be available to you, the first step is to connect with a trusted lender. Many people are unaware of the help they qualify for, and by not exploring these opportunities, they could be leaving money on the table. Leveraging these resources can boost your down payment, potentially lowering your monthly mortgage payments and even helping you avoid fees like private mortgage insurance (PMI).

Don’t Let Headlines About Rising Down Payments Discourage You

It’s true that news reports have been highlighting rising down payments. According to Redfin, the typical down payment for U.S. homebuyers reached a record high of $67,500 in June 2023, a significant increase from $58,788 the previous year.

However, it’s important to remember that while the average down payment is rising, the minimum down payment requirements haven’t changed. Many buyers are simply opting to put down more money to offset higher mortgage rates and reduce their long-term costs. For current homeowners, leveraging the equity they’ve built up allows them to increase their down payments on their next home. As HousingWire explains:

“. . . buyers are putting down a higher percentage of the purchase price to lower their monthly mortgage payment. And buyers also had more equity from their home sales, which gives them more cushion.”

Why Buyers Are Putting Down More

1. Lowering Monthly Payments: Making a larger down payment can significantly lower your monthly mortgage payment. With housing affordability becoming a bigger concern, those with the means to do so are increasing their down payments to make their future payments more manageable.
2. Using Equity to Your Advantage: Homeowners who are selling their current homes have likely built up significant equity thanks to recent home price appreciation. These sellers are able to put more down on their next home, giving them a financial advantage over first-time buyers.

The Bottom Line

Your best move? Speak with a trusted lender to explore your options. They can help you navigate available down payment assistance programs, understand loan requirements, and determine the right approach for your situation. There are plenty of resources out there—don’t miss out on an opportunity to get into your dream home.

Work With Sell For 1 Percent Realtors

Looking to save even more money when selling or buying your next home? At Sell For 1 Percent, we are a full-service brokerage offering exceptional service while charging just a 1% commission. By leveraging today’s technology, we pass the savings directly to you, ensuring you get the best deal possible. Whether you’re selling or buying, contact us today to learn how we can help you maximize your savings in the real estate market.

Visit us at www.SellFor1Percent.com or call 614-451-6616 to get started! or check out our YouTube Channel to stay up to date on real estate updates!

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With mortgage rates dropping and potential savings on the horizon, now is a prime opportunity to maximize your buying power or reconsider selling your home. As seen in the chart above, even a small reduction in interest rates can make a big difference. These reductions not only make homeownership more affordable but also give you the flexibility to explore more options in your price range or enjoy lower monthly payments for greater financial freedom. Whether you’re taking advantage of these conditions to buy your dream home or looking to sell while buyers are motivated by lower payments, making a move now could be one of the smartest financial decisions you make.

At Sell For 1 Percent Realtors, we offer full-service real estate solutions for just 1% commission, passing the savings we gain from using today’s technology directly to you. Why pay more when you can receive expert service at a fraction of the cost? Save on your mortgage payment with lower mortgage rates and save on commission to your real estate agent by using us. Contact us today and let’s get started on your journey to homeownership or selling for top dollar—without the hefty fees!

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The current mortgage market is in an interesting place. We’ve seen a slight dip in interest rates recently, going down to around 6%. While this might not seem like much, it translates to significant savings—around $290 a month for a homeowner with a $300,000 mortgage compared to higher rates seen last year.

There are three key factors impacting interest rates at the moment:

1. Employment Numbers: The recent employment numbers came in weaker than expected, which is usually good for interest rates. However, the weakness wasn’t alarming, so don’t expect drastic changes in the short term.
2. Consumer and Producer Price Indexes: These measures of inflation showed slightly higher numbers than anticipated, but not enough to cause a panic in the markets. Economists expect the Fed to make a cautious rate cut of 25 basis points next week instead of the previously debated 50 basis points.
3. Fed Rate Cuts: The Federal Reserve is expected to cut rates soon, but it’s important to remember that mortgage rates don’t always follow suit immediately. The market is forward-looking, so any change from the Fed is often baked into current mortgage rates.

What Buyers and Sellers Should Know

With the economy in a relatively stable position, we’re seeing more inventory hit the market. In Columbus, for example, there are around 4,200 active listings today compared to just 2,800 a year ago. This increase in inventory gives buyers more choices, and we’re seeing trends like warranties and remedies becoming more common in deals as sellers try to remain competitive.

Buyers

Buyers have a bit more leverage now than they did a year ago, with more selection and slightly better terms available. However, waiting for interest rates to drop even further might not be the best strategy. We’ve seen in the past that rates can fluctuate unexpectedly, and the opportunity for significant savings can be lost if you don’t act quickly. Locking in a rate now, especially if it’s in the low 6% range, could save you hundreds of dollars a month.

Sellers

For sellers, the biggest hesitation is often related to interest rates. Many homeowners are sitting on mortgages with rates around 3%, and the idea of selling and taking on a new mortgage at a higher rate can seem daunting. However, with more buyers entering the market and inventory increasing, there are opportunities to sell now, especially as rates remain relatively low compared to last year’s highs.

The Potential Impact of Future Cut to Rates

While the Fed is expected to lower rates, the impact on mortgage rates isn’t guaranteed. The comments made by Jerome Powell, the Fed Chairman, will be closely watched by the market. If Powell signals that the economy is doing well and that further rate cuts will be approached cautiously, it’s possible mortgage rates could rise in response. On the other hand, positive signals from Powell could cause rates to drop slightly, providing another window of opportunity for both buyers and sellers.

A Final Thought on Rates: Don’t Wait Too Long

It’s easy to fall into the trap of waiting for the “perfect” rate, but as we’ve seen time and time again, the market is unpredictable. If you’re on the fence about buying or refinancing, now is a great time to explore your options. Rates are still near the lowest they’ve been all year, and acting sooner rather than later could save you a significant amount of money in the long run.

Work with Sell for 1 Percent Realtors

At Sell for 1 Percent Realtors, we understand the complexities of the current market and work hard to ensure you get the best deal, whether you’re buying or selling. Our full-service brokerage offers everything you’d expect from a traditional real estate firm but at just 1% commission! We use today’s cutting-edge technology to pass the savings on to you, allowing you to keep more money in your pocket.

Don’t wait for the market to change—contact us today to see how we can help you save money on your next home transaction!

If you’re ready to take advantage of today’s market and save on commission fees, reach out to our team at Sell for 1 Percent Realtors. We’ll help you navigate the current landscape and secure the best deal possible.

Be sure to check out our YouTube channel for weekly market updates!

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A Significant Drop in Mortgage Rates

According to Sam Khater, Chief Economist at Freddie Mac:

“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”

This reduction in rates can translate into substantial savings for homebuyers. For instance, if you were considering purchasing a $400K home just a few months ago, when rates were at 7.5%, your monthly payment would have been significantly higher than it is now with rates dropping into the low 6% range.

How the Math Works Out

Let’s break down the impact of this drop in mortgage rates. The chart below illustrates what the monthly payment (principal and interest) would look like on a $400K loan if you purchased a home back in April when mortgage rates were at their peak versus what it would be if you bought a home now:

As you can see, going from 7.5% to the low 6% range reduces your monthly mortgage payment by over $370. That’s hundreds of dollars in savings each month—money that could go toward savings, home improvements, or other financial goals.

Rates Drop: What That Means for the Columbus Housing Market

The Columbus housing market has been evolving rapidly over the years. As one of the fastest-growing cities in the Midwest, Columbus has seen steady demand for housing, with prices increasing as more people move into the area. Companies like Intel, Amazon, and Facebook have established significant operations in the region, contributing to job growth and making the city an attractive place to live.

Historically, mortgage rate fluctuations have played a key role in shaping the real estate market in Columbus. The recent drop in mortgage rates presents a prime opportunity for buyers to enter the market or upgrade to a new home with more favorable financing options. The lower rates also come at a time when housing inventory in Columbus is improving, offering buyers more choices than they had in previous years.

The Long-Term Impact on Columbus

Over the years, the Columbus housing market has become more competitive, with prices steadily rising. The decline in mortgage rates could further drive demand, particularly for first-time homebuyers who may have been priced out earlier. With home prices in Columbus still relatively affordable compared to major metropolitan areas, the combination of lower rates and a growing job market creates an appealing environment for buyers.

For sellers, this drop in rates could mean more potential buyers entering the market, increasing the chances of securing a deal at or above asking price. Sellers may need to act fast to take advantage of the surge in buyer interest, as rates could fluctuate again.

Why Now is the Time to Buy in Columbus

Increased Purchasing Power

With mortgage rates at their lowest in over 18 months, your purchasing power has increased significantly. This means you can afford more home for your money. Whether you’re looking to buy a starter home, upgrade to a larger property, or invest in real estate, now is an excellent time to explore your options.

More Affordable Monthly Payments

The current rate drop could save you hundreds of dollars each month, as demonstrated earlier. This reduction in monthly payments means you can buy a home that fits your budget more comfortably or take advantage of the savings to invest in home improvements, build equity faster, or boost your savings account.

Columbus: A City on the Rise

Columbus is a city that has been experiencing robust growth, both in population and economic opportunity. As more companies build or expand their presence in the area, the demand for housing continues to rise. Lower mortgage rates will likely spur more activity in the local real estate market, making this the perfect time to buy before prices rise again due to increased competition.

Conclusion: Take Advantage of Rates drop in Columbus

The recent drop in mortgage rates offers a fantastic opportunity for homebuyers in Columbus. With the combination of increased purchasing power, more affordable monthly payments, and a growing housing market, there’s no better time to explore your options.

Ready to make the most of this moment? Call Sell For 1 Percent at 614-451-6616. We’re full-service realtors offering expert guidance with just a 1 percent commission, saving you thousands of dollars. Let’s help you find your dream home in Columbus!

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According to recent data from Realtor.com, homes in August 2024 spent an average of 53 days on the market—the longest period in five years. Additionally, 19.3% of listings saw price cuts, making this summer the slowest real estate season in half a decade. This might sound like a gloomy picture, but for buyers, it opens a window of opportunity.

Why Columbus is a Key Market

Columbus, Ohio, is no stranger to growth and transformation. Over the past several years, the city has seen a surge of interest from major corporations like Intel, Google, Amazon, and Facebook, which have chosen to either establish or expand operations in the region. The arrival of these companies has had a profound impact on the local economy, boosting job growth and increasing demand for housing.

Historically, Columbus has been an affordable and attractive housing market compared to coastal cities, but this dynamic is rapidly changing. Home prices have been rising as the city’s population continues to grow, driven by its economic development and cultural offerings, such as The Ohio State University and a booming tech sector. However, with mortgage rates currently high, many potential sellers and buyers have paused, leading to longer times on the market and an uptick in price reductions.

A Fall Opportunity for Buyers

As Realtor.com’s Chief Economist, Danielle Hale, points out:

“This fall could be busier for the housing market than this season typically is, but it’s still likely to be a less competitive time, which makes it ideal for flexible buyers.”

For buyers in Columbus, this means fall 2024 could be a prime time to secure a property. High mortgage rates, combined with more homes lingering on the market, provide buyers with more options and less pressure compared to the competitive spring and summer seasons.

What Happened in August?

The summer slowdown in the Columbus housing market can largely be attributed to high mortgage rates. This caused both buyers and sellers to wait for a more favorable environment, leading to a market stalemate. But all of that could be changing soon.

The Federal Reserve’s upcoming mid-September policy meeting is expected to result in lower interest rates. While the Fed doesn’t directly control mortgage rates, their decisions often influence them. Realtor.com’s economists predict mortgage rates could fall to around 6.3% by the end of 2024. Once rates dip, the market is likely to heat up again, so buyers might want to act before competition ramps back up.

Housing Stock in Columbus This Fall

One of the key trends to watch this fall is housing stock. In August, new listings actually fell by 0.9% compared to the previous year, marking the first decline in nearly a year. Many homeowners have been reluctant to sell because they’re locked into low mortgage rates from previous years, much lower than today’s rates.

Jeff Lichtenstein, broker and owner of Echo Fine Properties, humorously notes:

“That 4% spread has homeowners holding on to the current rate like Gollum held onto his precious ring.”

As rates fall, more homeowners may be willing to part with their low-rate mortgages and list their homes, which could increase inventory. But as Hale points out, the homes that do go on the market may take longer to sell, meaning more choices for buyers without the urgency to act immediately.

Columbus Housing Market Changes Over the Years

Columbus has historically been an affordable market, but this has been changing rapidly in recent years. The influx of major companies has driven demand for housing, which in turn has pushed prices higher. Home prices in Columbus have increased steadily, and with the arrival of companies like Intel building large facilities, the city’s tech and manufacturing sectors are booming. This growth has brought a wave of new residents and homebuyers, particularly those relocating from higher-cost states like California and New York.

With 86% of homeowners holding mortgages below 6%, many are hesitant to sell their homes and face a higher interest rate on a new mortgage. However, as rates drop, this dynamic is expected to shift, bringing more listings to the market and creating opportunities for both buyers and sellers.

What to Expect for Buyers This Fall

1. More Time to Decide

In August, homes lingered on the market for nearly a week longer than last year. This fall, buyers can expect even more time to make decisions, as the typical time on the market increases in the cooler months. While rates are expected to drop, competition for homes is likely to stay lower than during peak spring and summer seasons. This gives buyers the opportunity to thoroughly evaluate homes and negotiate more favorable terms.

2. Home Prices Could See a Bump

If mortgage rates drop as predicted, Columbus could see a slight bump in home prices as more buyers enter the market and bidding wars resume. But don’t expect prices to skyrocket overnight—buyers offering above the asking price won’t become the norm again immediately.

Jason Gelios, a real estate agent with Community Choice Realty, explains:

“You will have a slight increase in confidence from both homebuyers and sellers, and that, in turn, might bump prices up slightly.”

3. Sellers Will Need to Stand Out

Columbus has been a seller’s market for years, with high demand and low inventory supporting higher prices. However, this dynamic is shifting. Buyers have become pickier, and sellers need to step up their game to stand out. This might involve reducing prices, improving curb appeal, or being more patient when waiting for offers. As Christine Dupont-Patz from Re/Max of Cherry Creek puts it:

“Gone are the days when sellers just had to put a sign in their yard and have multiple offers.”

A Fall Buying Strategy for Columbus

If you’re a buyer in Columbus this fall, you have a unique opportunity. With mortgage rates likely to dip and more homes on the market, you’ll have more time and less competition. This is the perfect moment to reassess your priorities, create a list of must-haves, and set up specific real estate searches to get notified when a listing that meets your criteria becomes available.

As the housing stock increases and the market activity picks up, you may find yourself with more negotiating power and less pressure to make a snap decision.

Make Your Move in Columbus This Fall

The summer real estate slowdown in Columbus has created a runway for buyers this fall. While mortgage rates are expected to decline, the market isn’t likely to become as frenzied as previous years, offering an excellent opportunity for buyers who are ready to act. As the number of homes for sale rises and mortgage rates trend downward, you’ll have more time and options to find the right home for you.

Ready to jump into the Columbus real estate market this fall? Call Sell For 1 Percent at 614-451-6616. We’re full-service realtors offering exceptional service for only 1 percent commission, saving you thousands of dollars. Let’s help you find your dream home in this dynamic city!

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“They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.”

But what does this mean for the housing market in Columbus, Ohio, and more importantly, for you as a potential homebuyer or seller in this dynamic city?

Why a Federal Funds Rate Cut Matters for Columbus

The Federal Funds Rate is a significant factor that influences mortgage rates, though it’s not the only one. Other factors like the overall economy, geopolitical uncertainties, and local market conditions also play a role.

When the Fed cuts the Federal Funds Rate, it sends a signal about the broader economy, and mortgage rates typically respond. While a single rate cut might not cause mortgage rates to drop dramatically, it could contribute to the gradual decline that’s already underway.

As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), explains:

“Once the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower.”

This upcoming rate cut is likely just the beginning. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), adds:

“Generally, the rate-cutting cycle is not one-and-done. Six to eight rounds of rate cuts all through 2025 look likely.”

How This Affects Columbus Housing Market

Columbus has been on a growth trajectory for years, with significant investments from major companies like Intel, Google, Amazon, and Facebook. These companies are building or moving operations into the area, contributing to job growth and making Columbus a vibrant, appealing place to live. The city’s population growth, coupled with these economic investments, has fueled demand for housing, pushing home prices upward over the past decade.

A cut in the Federal Funds Rate, leading to lower mortgage rates, could further stimulate the Columbus housing market. For many, this could be the opportunity they’ve been waiting for.

The Projected Impact on Mortgage Rates in Columbus

Industry experts project a gradual decline in mortgage rates through 2025, largely driven by anticipated rate cuts from the Fed. The latest forecasts from Fannie Mae, MBA, NAR, and Wells Fargo indicate that as inflation cools and the job market slows, mortgage rates could see a moderate decline.

Columbus Housing Market Over the Years

Historically, Columbus has seen steady growth in its housing market. Over the past decade, the city has transformed from a hidden gem in the Midwest to a booming metropolis with a thriving real estate market. Home prices have risen consistently, driven by both local demand and interest from out-of-state buyers.

As more companies establish their presence in Columbus, the demand for housing is expected to continue growing. A reduction in mortgage rates could make homeownership more accessible for a broader range of buyers, potentially boosting sales and maintaining the upward trend in home values.

Benefits of Lower Mortgage Rates for Columbus Buyers and Sellers

1. Easing the Lock-In Effect

For many current homeowners, the prospect of selling their home has been dampened by the “lock-in effect,” where people feel stuck because today’s mortgage rates are higher than those they locked in when they purchased their home. In Columbus, where the market has been competitive, this effect has been particularly pronounced.

A slight reduction in mortgage rates could ease this lock-in effect, making it more attractive for homeowners to sell. However, don’t expect a sudden influx of homes hitting the market—many homeowners may still be cautious about giving up their existing low-rate mortgages.

2. Boosting Buyer Activity

For potential homebuyers in Columbus, any drop in mortgage rates could open up new opportunities. Lower mortgage rates reduce the overall cost of homeownership, making it more feasible for buyers who have been on the fence.

In a city like Columbus, where the housing market has been heating up due to economic growth and an influx of new residents, even a small decrease in mortgage rates could lead to increased buyer activity. This, in turn, could drive home prices higher, especially in desirable neighborhoods.

What Should You Do?

While a Federal Funds Rate cut isn’t expected to lead to drastically lower mortgage rates, it will likely contribute to the gradual decrease that’s already happening. If you’re considering buying or selling in Columbus, now is a great time to evaluate your options.

Jacob Channel, Senior Economist at LendingTree, offers this advice:

“Timing the market is basically impossible. If you’re always waiting for perfect market conditions, you’re going to be waiting forever. Buy now only if it’s a good idea for you.”

Conclusion: The Time to Act is Now

The expected Federal Funds Rate cut, driven by improving inflation and slower job growth, is likely to have a positive, albeit gradual, impact on mortgage rates. This could create new opportunities for both buyers and sellers in the Columbus housing market.

Whether you’re looking to buy your first home or considering selling your current one, now is the time to take action. The Columbus market is thriving, and with the potential for lower mortgage rates, you could find the perfect opportunity to make your move.

Ready to take the next step? Call Sell For 1 Percent at 614-451-6616. We’re full-service realtors offering exceptional service for just 1 percent commission, saving you thousands of dollars. Let’s navigate the Columbus market together!

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