If you are planning to buy a Columbus area home in the upcoming year, you could be facing a market similar to what we experienced during approximately 6 months of 2015. Here are market forecasts published by HousingWire and Columbus Business First, along with thoughts of our own!
According to industry analysts at Capital Economics, rising home prices and improving equity will enable more homeowners to sell in 2016. However, this will only provide a modest increase in home inventory. A meaningful increase in home inventory isn’t expected until 2017, when more new construction will arrive on the market.
As long as home inventory remains tight, some homeowners will choose to stay put, rather than risk having nowhere to go. Metro Columbus has a number of homeowners who bought at the market peak, and still lack sufficient equity for a profitable sale.
Meanwhile, increasing rental costs, a stable economy, and the prospect of rising interest rates will continue to motivate home buyers. A concern among analysts is the price pressure that will result from the combination of limited home inventory and strong buyer demand. As home prices rise, home ownership becomes less affordable for first-time buyers. Since home ownership can be an important factor in the creation of household wealth, a balanced home market is ideal for our nation’s economy.
The rise in home prices is why Columbus ranks below other Ohio cities in Nationwide Mutual Insurance Co.’s “Health of Housing Markets Analysis.” Columbus still made the list of healthy markets, but Central Ohio home prices are rising faster than markets in Akron, Dayton and Toledo.
This puts Columbus a bit lower in the ranks when it comes to home affordability. Simply put, home demand in some areas of Columbus is high, which helps push up average home prices. Our overall market remains strong due to the positive conditions in our local, very diverse economy, employment sectors and demographic trends.
Please also remember that all real estate is local; market conditions in Upper Arlington will vary from Dublin. Home prices and days-on-market will vary from one neighborhood to another, even street by street.
No matter how you look at it, buyer competition will be with us throughout 2016. This is just one of the reasons you need an Exclusive Buyer’s Broker to protect your interests, and prevent you from over-paying for a home!
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
