You may have heard that the Columbus real estate market is improving. You may also have heard that the inventory of homes for sale is much lower than it used to be anytime during the past 5 years.
The gap between homes sold and homes listed for sale (inventory) has been widening since the beginning of the year.
The chart at the top of this post shows the change (in %) in the number of homes sold in a particular month, as well as the change in inventory (the number of homes listed on the MLS).
You can clearly see that we sold at least 5% more homes every single month in 2012 than a year ago.
The drop in the inventory of available homes is even more significant. In July 2012 there were 32% fewer homes on the market than in July 2011.
And the gap is growing!
Even skeptics agree that the real estate market has turned. And the average sales price of Columbus homes has gone up for 6 months in a row.
A Lack of Foreclosed Real Estate
Another fact that’s fueling the market is a drop in foreclosures. The Columbus Board of Realtors has been tracking distress sales for the past 2 years. Overall, distressed properties account for only 20% of all listings. Even government and bank-owned homes are affected.
Who would have thought that HUD may be running out of homes to sell?
If you go to the HUDhomestore, you can see that only 57 HUD homes are for sale in Franklin County at this point in time.
Foreclosed properties sell faster than regular listings. They are less expensive and most buyers want to get a “deal”, even if it involves work.
What ever happened to the shadow inventory of REOs that was supposed to flood the market?
In a recent interview the Secretary of HUD, Shaun Donovan, stated that there is little to fear from a shadow inventory. We believe, it does not exist …
What does this mean for Home Buyers and Sellers?
As the gap continues to grow, the competition between home buyers increases.
There’s a smaller selection of homes for sale. Sellers will be gaining an upper hand, when it comes to negotiating the price. And, home values will definitely increase. We may see another sellers market soon.
If you are thinking about selling your home, now is a very good time to put it on the market!
With the inventory at a 6 year low and hardly any new construction happening, this may be your best chance to get a premium offer for your residence.
Give me a call at (614) 975-9650! I can help you sell your house quickly, and promise to have it in contract within 30 days.