Columbus, Ohio’s real estate market saw dynamic shifts this September. Columbus REALTORS® reported 2,445 property sales and introduced nearly 2,900 new listings.

September 2022 had 2,858 finalized sales with a median selling price of $290,000. Fast forward a year, and sales in Columbus dropped by 14.5%. On the brighter side, the median sales price rose by 6.9%, reaching $310,000.

In the Columbus and Central Ohio property market, September brought 2,875 new listings to the Regional MLS. The MLS currently lists 3,624 homes for sale, a slight drop from last year’s 3,806.

After the property boom last year, some experts anticipated a subtle market adjustment. They observed the market transitioning steadily, emphasizing the need for adaptability among real estate stakeholders.

Mortgage rates have played a significant role in shaping the market over the past two years. Rates that consumers once enjoyed, historically low at under 3%, have now climbed to levels reminiscent of the early 2000s. This shift demands a fresh perspective from everyone in the real estate sector.

While some might recall the soaring 16% mortgage rates of the 1980s, many of today’s potential buyers don’t have that historical context. Over the last twenty years, mortgage rates have largely remained below 5%, setting a new standard for market expectations.

Freddie Mac’s historical data provides further clarity. In 1975, the average rate for a 30-year fixed mortgage stood at 9.05%, peaking at 16.63% in 1981. By 1991, rates had decreased to 9.25%. Then, in 2003, these rates dipped below 6%, marking the beginning of a two-decade period with rates reaching a historic low of 2.96% in 2021.

Understanding this historical context is crucial. Since 1971, Freddie Mac’s records show an average 30-year mortgage rate of about 7.74%. The rate now sits slightly higher at 7.80%. These numbers might not comfort today’s buyers immediately, but they paint a realistic picture of the market. Real estate professionals must guide their clients to lenders offering favorable terms, emphasizing the importance of understanding financial options in the current market.