Central Ohio home sales topping the charts

Posted on by Jim Reitano

Central Ohio Housing Report – June 2013colsrealtors

7/22/2013

Central Ohio home sales topping the charts

Central Ohio home sales continue to top the charts this year as sales for the first six months of the year (13,031) were 22.2 percent higher than last year – and the next highest on record behind 2006 when the market saw 13,192 sales January through June.

The 2,810 closings last month were 10.4 percent higher than June 2012 and mark the 18th month of year over year sales increases according to Columbus REALTORS®.

There were 3,721 homes that went into contract in June which is 17.7 percent higher than the previous year.

“We’ve seen a significant increase in activity this year which jumped further when interest rates started to rise,” said Chris Pedon, president of Columbus REALTORS®. “If mortgage rates continue to increase, we could see a softening of the market. But for now, many buyers have either jumped off the fence or stepped up their effort to buy now instead of taking that chance.”

In addition to sales, home prices have also risen. The average sale price during the month of June was $196,377 which is not only 6.6 percent higher than last year, but marks June 2013 as the highest sales price month on record.

The high average price indicates that more homes sold in the higher price ranges in June. During the first six months of the year, 334 homes sold for $500,000+ which is 31 percent higher than the 255 that sold from January to June of 2012 – and 36.2 percent (121) of them sold in June alone.

“Everyone benefits from rising home values, especially those who have been in a negative equity position,” adds Pedon.

Negative equity (often referred to as “underwater” or “upside down”) means that a borrower owes more on their mortgage than their home is worth. Negative equity can occur due to a decline in value, an increase in mortgage debt or a combination of both.

“A 3-6 percent increase in home prices could move some homeowners back to a state of positive equity. It also means that some homeowners who were upside down in their mortgage before, might be able to sell today.”

According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®), 100 percent of central Ohio REALTORS® describe the current housing market as moderate to strong and 92 percent expect home prices to increase in the next year.

Columbus REALTORS® is comprised of over 5,800 real estate professionals engaged in residential sales and leasing, commercial sales and leasing, property management, appraisal, consultation, real estate syndication, land development and more.

The Columbus REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Licking, Madison, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Marion, Muskingum, Perry and Ross Counties.

The monthly housing reports can be found at www.ColumbusRealtors.com/stats. The reports include breakouts for 18 central Ohio counties and 53 local municipalities and school districts. Buckeye Valley Schools was added to the reports in February 2013.