Central Ohio Housing Report – September 2023

SEPTEMBER SAW A 14.5% DECREASE YEAR OVER YEAR IN CLOSED SALES, BUT INVENTORY ROSE 5.5% OVER AUGUST.

COLUMBUS, Ohio (Oct. 19, 2023)—  There were 2,445 sales and nearly 2,900 new listings added to the market, according to the latest central Ohio housing report provided by Columbus REALTORS® for the month of September 2023.

Year – Over – Year Comparison

In September 2022, there were 2,858 closed sales with a median sales price of $290,000. One year later, the region witnessed a 14.5 percent decline in sales while experiencing a 6.9% increase in median sales price, up to $310,000.

There were 2,875 new listings added to the Columbus and Central Ohio Regional MLS in September, and the total inventory of homes for sale in the MLS sits at 3,624, slightly lower than the 3,806 homes available one year ago.

“Last year, when the market was at an all-time high, we expected some leveling off,” said Columbus REALTORS® President Patti Brown-Wright. “I think that the market has adjusted in a way that’s been gradual, and we’ve all had to adapt.”

Mortgage Rate Impact

One of the most significant factors in the market has been the rise in mortgage rates over the last 24 months. In two years, consumers have gone from record-low rates of under 3% to mortgage rates not seen since the millennium. This may be the perfect time for everyone involved in real estate to have some perspective.

“I think many of us remember the 1980s when mortgage rates were 16%, but we have to remember that most prospective buyers in today’s market do not remember those days. Over the last two decades, mortgage rates have been mostly under 5%. This is the world the majority of the public has come to know.”

According to data from Freddie Mac, the average 30-year fixed mortgage rate in 1975 was 9.05%. Rates peaked in 1981 at 16.63% and remained in double digits until 1991, when they dropped to 9.25%. The first time the average 30-year fixed mortgage dipped below six percent was in 2003 at 5.83%. That ushered in a 20-year era with an all-time low of 2.96 percent in 2021.

Local Spotlight

Hilliard has 105 active homes on market.  With an average days on market of  16 days, the market has the shortest sales cycle of west side suburbs.  The average price for Hilliard homes through $401,750.

Dublin has 153 active homes on the market.  With the highest average sales price of $519,203 on the west side, days on market holds at 21.

Grove City has 174 active homes on the market.  Grove City holds the dubious title of highest of number days on market at 29 in spite of having a low average sales price of $351,367.

“REALTORS® have to know their history,” continued Brown-Wright. “The average 30-year mortgage rate since Freddie started tracking this in 1971 is just under 7.74%. Today’s current rate is *7.80%. That may not be a nice warm blanket for today’s buyer, but it’s the facts. Where REALTORS® can make an additional impact is connecting their customers with lenders offering products that can provide relief at the negotiating table. Understanding your financing options should be the top priority for today’s buyer.”

Columbus REALTORS® is composed of almost 10,000 real estate professionals engaged in residential and 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, Marion, Morrow, Pickaway, and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry, and Ross counties.