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 still a seller’s market, but it does appear to be leveling out somewhat in Central Ohio. In August, the Months of Inventory decreased slightly. The absorption rate leveled out, and the price per square foot continued to fall from July’s peak. New listings were yet again outpaced by homes going in contract, and the … Continued
While we’re still in a strong seller’s market thanks to high demand and low inventory, the market does appear to be leveling out in Central Ohio. Months of Inventory went up in July, and the Absorption rate went down. Trends have changed to Steady and Neutral.* In July, the Months of Inventory continued to rise, … Continued
As usual, the market heats up along with the temps. Even though Days On Market are falling and prices are rising, the market is hampered by continued low inventory. In June, the Months of Inventory rose. New listings were yet again outpaced by pending and sold homes, but there was a 40% increase in homes … Continued
As expected, as the weather warms so does the housing market. Even though Days On Market are falling and prices are rising, the market is hampered by continued low inventory. Thankfully, we are seeing more listings enter the market. In May, inventory rose somewhat but new listings were once again outpaced by pending and sold … Continued
As expected, as the weather warms so does the housing market. Even though Days On Market are falling and prices are rising, the market is hampered by continued low inventory. The demand is still there, but the supply just isn’t. In April, it does appear that the number of homes for sale and homes listed … Continued