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
The Columbus area continued to be in a strong seller’s market throughout March. Home prices came down slightly over the past months (normal for this time of year) – which is good news for buyers. BUT, inventory is still incredibly low which is definitely going to continue to benefit sellers. As we shift into the … Continued
The Columbus area continued to be in a strong seller’s market in February, despite the weather. Home prices are coming down slightly each month (normal for this time of year) – which is good for buyers. BUT, inventory is still incredibly low which is resulting in bidding wars, no contingencies, and favorable conditions for sellers. … Continued
The Columbus area continues to be a strong seller’s market despite being in the dead of winter. Home prices are coming down slightly each month – which is good for buyers. But, inventory is still incredibly low. Consistently low inventory and higher demand are driving up prices year after year. The market normally slows down … Continued
The Columbus area continues to be a strong seller’s market despite being in the dead of winter. Home prices are coming down slightly month by month – which is great news for buyers. But, inventory is still incredibly low. Consistently low inventory levels combined with high demand are continuing to drive prices up year after … Continued
The Columbus area continues to be a strong seller’s market even as temps drop. Home prices are coming down slightly month over month – which is great news for buyers. But, inventory is still lower than ever. Consistently low inventory levels combined with high demand are continuing to drive prices up year over year. We … Continued