The Columbus Business Journal recently published an article about the growing disparity between Central Ohio home prices and wages. Market data by RealtyTrac shows that Metro Columbus home prices rose 12.5% between 2012 and the summer of 2014. During the same period, local wages grew by a mere 1.3%.
You might recall that just about a month ago, RealtyTrac placed Columbus among the 10 Best Markets for First-Time Home Buyers. This remains true, despite the latest statistics by the same agency. Columbus home prices are outpacing wage growth, but not as sharply as other markets around the country. We also have a healthy job market that helps support home ownership.
Home price momentum is expected to continue. Steady home demand may push Columbus area home prices up by another 4.5% during 2015, according to projections by Clear Capital.
Meanwhile, any increase in mortgage interest rates could impact home affordability, especially for first-time home buyers. While a slight uptick in rates won’t derail most buyers, higher rates impact the affordability ratios that are screened by mortgage underwriters. Home buyers who are just inside the lines of approval today, may find themselves out of the running after a one-two punch of rising home prices and higher rates.
This doesn’t mean that Columbus home buyers should be rushing to buy the first home they find. Buyers who operate without the advice of dedicated, professional representation are likely to find themselves overpaying for a home, or surrendering essential contingencies that protect them.
Always remember that there are more homes on the market than the Multiple Listing Service indicates, since the MLS does not include for-sale-by-owner properties, or new construction for sale by home builders. As Exclusive Buyer Brokers, we can show our buyer-clients any home on the market, whether or not it is listed through the MLS.
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
