The Central Ohio real estate market had an exciting year in 2022! Despite the challenges brought on by higher interest, homebuyers persevered to pursue their dream of homeownership. As we close out 2022 and reflect back on the past 12 months, it’s clear that Central Ohio was resilient, even in the face of economic uncertainty. Let’s take a closer look at the trends that drove the Central Ohio real estate market over the last year.
2022 Began Where 2021 Left…
The housing market had been sizzling for two years, but that all shifted when mortgage rates started to spike. Suddenly, monthly mortgage payments weren’t as affordable, and home prices weren’t growing at the same breakneck pace. Home sales slowed as borrowing costs increased, eventually leading to a cooler housing market after two years of being on fire. Fortunately, there is still pent-up demand and a shortage of housing supply, so the market isn’t crashing (nor is it likely to anytime soon).
Pending sales decreased by 14.1 percent, finishing 2022 at 31,725. Closed sales were down 12.6 percent to end the year at 31,885.
Compared to 2021, the number of homes available for sale was up 35.7 percent. There were 2,878 active listings at the end of 2022. New listings decreased by 9.0 percent to finish the year at 36,348.
Foreclosures & Short Sales
In 2022, the percentage of closed sales that were either foreclosure or short sales increased
by 25 percent to end the year at 1.5 percent of the market. Foreclosure and short sale activity may increase in 2023, though the strong gains in equity seen by most homeowners in the last few years will help to limit the number of distressed sales.
Home prices were up compared to 2021. The overall median sales price increased by 11.5 percent to $290,000 for 2022. Single Family home prices were up 10.8 percent compared to 2021, and condo prices were up 11.7 percent.
Summing Up 2022
Home sales dropped significantly during the year, but homebuyers found creative ways to buy in an increasingly expensive market. Buyers shifted from pricier urban areas to more affordable Columbus suburbs. Meanwhile, homeowners hesitated to sell due to climbing mortgage rates and the changing market. As a result, homebuilders had to reduce production in the face of diminishing demand, further reducing the overall supply of housing. With homeowners staying put and builders pulling back, this put a low-inventory floor under the market. Despite these challenges, we still managed to help our clients navigate the situation to their best advantage!
Looking Forward To 2023
As we look toward 2023, a few factors including inflation, mortgage interest rates, and the state of the economy will be variables to consider. Although economists suggest that many housing trends from 2022 are here to stay- including softening home sales, moderating price hikes, low inventory levels, and varying market values across the US (with some areas even seeing price decreases) – there will still be a large appetite for more affordable regions in the country that will see positive prices growth.
The Columbus market is well-situated for current market conditions. Even with rising prices, Central Ohio homes for sale remain attractive for people moving to Columbus from higher-priced markets. Additionally, our steady job growth and innovation such as the new Intel fabs will keep people moving to Columbus.
Make Your Move in 2023!
Let’s look to the future! Now that we understand where the real estate market was last year, let’s talk about how we can use those insights to our advantage in 2023 and beyond. With this knowledge, start setting goals for yourself: Are you looking to buy your first home? Move-up to a better fit? Downsize? Invest in a piece of property? Expand your real estate portfolio? By reflecting on the trends from 2022, you can form a strategy on how to approach the market. Don’t let fear hold you back – instead, take action and make 2023 the start of your real estate journey!