Central Ohio Housing Report - June 2023

Inventory is on the rise, but median sales prices continue to climb in the latest housing statistics.

Inventory is up 8.1% when compared to last month, and the median sales price for homes in central Ohio set a new all-time high for the second consecutive month, according to June 2023 housing statistics provided by Columbus REALTORS®.

The total inventory of homes for sale in central Ohio was 2,887, down 8.3 percent year over year, but the 8.1% uptick over last month’s number is a positive sign for the market.

“Our market is very competitive, there is no doubt about that,” said Columbus REALTORS® President Patti Brown-Wright. “I’m hopeful that the gains in inventory that we have seen over the last two months will continue.”

The median sales price has steadily increased since January when it entered the new year at $262,750. Since then, the median sales price has experienced a 22.6% increase from January 2023 to June 2023, topping out at $322,205 this month.

Homes averaged 20 days on the market for the second consecutive month, and the percentage of the last list price received sat at 102.1%, meaning, on average, buyers were paying 2.1% over the asking price in June.

The average rate for a 30-year fixed mortgage was around 5.7% on June 30, 2022, according to Freddie Mac. As of July 3, 2023, the average rate was 6.96%, the highest rate in eight months.  The good news is that inflation is down to 3% in June, the lowest increase since March 2021, according to the U.S. Department of Labor’s Bureau of Labor Statistics.

What does that mean for potential home buyers and sellers in central Ohio?

“Over the last six months, our buyers have grown more comfortable with 6-7% mortgage rates. It’s the sellers who are sitting on mortgages at 3-4% who have been a little more hesitant to enter the market,” noted Brown-Wright.

“The central Ohio market is one of the hottest in the country, and I know that can confuse potential buyers who may hear that housing markets are slowing down or prices are dropping. That’s not the case in Columbus, so it is important to work with a REALTOR® who is an expert in the neighborhood you want to call home. It’s a great time to buy or sell in central Ohio because we don’t see a cool down coming.”

Dr. Jessica Lautz, the Deputy Chief Economist & Vice President at the National Association of REALTORS®, puts the recent 30-year fixed rate hike into perspective.

“For home buyers, the rate jump means a monthly payment of $2,126 for the typical single-family home,” said Lautz. “The typical payment is up more than $280 since July 2022.”

Lautz sees some light at the end of the tunnel.

“For those saving for a down payment, yesterday’s inflation numbers show a positive story, which hopefully translates to lower mortgage interest rates this year. It may be easier today to save and pay down existing debt than it has been in the last year.”

In the local market spotlight, Newark saw a 91% increase in sales year over year, with 63 homes sold in June at a median sales price of $243,500, a 44.9% increase over the $168,000 median sales price in June 2022. Newark, which is located 40 miles east of downtown Columbus in Licking County, is less than 20 miles from the new Intel chip manufacturing plant just outside of Johnstown and New Albany.

For the second consecutive month, Columbus, Ohio, ranked No. 7 on the Realtor.com Top 20 Hottest Housing Markets list. Dayton was the only other Ohio metro to land on the list, checking in at No. 18.

Columbus REALTORS® is composed of almost 10,000 real estate professionals engaged in residential and commercial sales and leasing, property management, appraisal, consultation, real estate syndication, land development, and more.

The Columbus REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Licking, Madison, Marion, Morrow, Pickaway, and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry, and Ross counties.