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
Columbus OH Real Estate Market Report July 2023
In June, Months of Inventory stayed at 0.8. Since this is under 3, it remains a seller’s market. With continued low inventory, home prices continue to rise. Homes continue to sell quickly at only 18 days on average. While that’s longer than the housing frenzy of 2021, it’s relatively quick. Continue reading to see how … Continued
Columbus OH Real Estate Market Report June 2023
In May, Months of Inventory increased slightly to 0.8. Since this is under 3, it’s still a seller’s market. The number of new listings went up 17.3% compared to May. While the number of new listings finally outpaced the number of pending homes, only time will tell if this is a new trend that could … Continued
Columbus OH Real Estate Market Report May 2023
In April, the Months of Inventory moved up slightly to 0.9. Since this is under 3, it’s still a seller’s market. The number of new listings went up 4% compared to April. However, the number of homes going into contract outpaced the number of homes listed for sale in April. Low inventory and the seasonal … Continued
Columbus OH Real Estate Market Report April 2023
In March, the Months of Inventory moved back down to 0.8. Since this is under 3, it’s still a seller’s market. The number of new listings went up 30.2% compared to March. However, the number of homes going into contract and selling outpaced the number of homes listed for sale in March. The lower number … Continued
Columbus OH Real Estate Market Report March 2023
In February, the Months of Inventory moved back down to 1.1. Since this is under 3, it’s still a seller’s market. The number of new listings went up 6% compared to February. However, the number of homes going into contract and selling outpaced the number of homes listed for sale in February. The lower number … Continued