You hear it on the news all the time: “It’s a buyer’s market,” “It’s a seller’s market,” or “The housing market is on the rebound.” And, while you probably get the gist of what these folks are talking about, having a deeper understanding of the housing market and how it works can help you immensely during the home buying or selling process in Central Ohio.
What Are The Central OH Housing Market Basics?
The housing market refers to the general market of houses being bought and sold between buyers and sellers. These houses are either bought or sold directly by owners or indirectly through brokers. Like any market, the housing market is governed by the law of supply and demand. When demand is high and supply is low, the market appreciates. When demand is low and supply is high, the market depreciates.
How Does Housing Inventory Affect Home Values?
In the real estate industry, we think of supply and demand in terms of available inventory. You can measure inventory by answering the following question: At the current pace of sales, how long would it take all of the houses available on the market to be sold? As inventories rise, home prices tend to decline. This is because as inventories rise, so does the competition among sellers, which drives prices down.
What’s The Difference Between A Buyer’s & Seller’s Market
A buyer’s market is associated with longer inventory periods. As homes sit on the market for longer and longer, sellers become more and more flexible with their prices. This is great for buyers, as they usually end up getting a good deal (hence the term “buyer’s market”). In contrast, a seller’s market is associated with shorter inventory periods. Homes sell rapidly, giving sellers a lot of pricing power (hence, it’s a “seller’s market”).
Keep in mind that as with other markets, the housing market is cyclical: There are periods of rapid appreciation followed by periods of stabilization or depreciation. By studying the market, you can learn to foresee such trends.
Get An In Depth Analysis Of Your Neighborhood Real Estate Market
If you’re thinking about buying or selling a home, it’s a good idea to learn all you can about the neighborhood you are buying or selling a home in. A local REALTOR is the best person to get this information from. As a Central OH real estate expert, I have a deep understanding of Columbus area neighborhood real estate markets. Contact me and request your free neighborhood market report.
Read Recent Central Ohio Real Estate Market Reports
It’s May and the house hunting season is in full swing! The number of listings went up in April, but so did the number of homes closed and in contract. Inventory remains low and is about the same as this time last year. Read More to see how the Central Ohio real estate market did … Continued
Birds are singing, flowers are blooming… and the market is heating up! Literally, Columbus was just named the Hottest Market in the US. If you’re thinking about buying a home, what better way to enjoy the lovely weather than to go see some homes for sale! Read More to see how the Central Ohio real … Continued
It’s officially Spring! When the temperature climbs and there’s more daylight in the evening, it’s perfect for house hunting! Read More to see how the Central Ohio real estate market did in February and to view trends.
January is usually the beginning of the end for the slower winter season in real estate. Home buyers in Columbus enjoyed more inventory, longer days on market, and lower prices on average. As the days grow longer, the weather warms, and folks begin to get their tax refunds, that’s when the real estate market swings … Continued
The weather and short days generally make January a slower time for real estate. It’s normal for prices to shift down and properties to spend more time on market. However, thanks to the new year and tax returns on the horizon, many home buyers and sellers are gearing up to enter the housing market soon. … Continued