Double digit home price increases combined with rising interest rates did not bode well for first quarter 2022 home sales in central Ohio.
During the last couple years, home buyers were quickly purchasing nine out of every ten homes listed. However, fewer buyers took advantage of the increased inventory last month.
In 2021, 91.3 percent of the homes listed were sold. In 2020, 92.8 percent of listed homes sold. During the first quarter of 2022, that average dropped to 82.1 percent ending at 73.8 percent in March.
The decrease in sales occurred despite a 6.4 percent increase in new listings last month and a five percent bump in February.
We’ve seen significant price increases over the past few years, and we’re now seeing buyers that are more cautious and discerning when it comes to how much they’re willing to pay for a home.”
With job security and how long one planes to stay in a home are two key factors. Unless you’re planning on paying down your principle soon, it is often prudent “Job security and how long you plan to stay in a home are two key considerations. Unless you plan to pay down your principal sooner, keeping your eye on the horizon of seven to ten years is prudent in today’s market.”
The average price of a home sold in central Ohio this year ($303,306) marks a 11.2 percent gain compared to first quarter of 2021. At $260,000, the median sale price increased 11.3 percent year over year. The average sales price is the total volume divided by the number of homes sold. The median is the midpoint — half the homes sell for less, while half sell for more.
The share of homes selling in the more affordable price ranges has dropped while homes over $350,000 have seen healthy gains in market share.
Although it took an average of 21 days to sell a home during the first quarter of 2022, it may not feel that way to buyers due to multiple offers and homes that go in contract their first day on the market.
Homes between $215,000 and $350,00 were selling very quickly – an average of 14 days. Homes priced under $215,000 sold in an average of 22 days, homes between $35,000 and $500,000 took 23 days and homes between $500,000 and $700,000 took 26 days while homes over $700,000 spent about a month and a half on the market.
“With higher home prices in central Ohio as well as across the nation, mortgage rate increases will be a challenge for many buyers,” added Van Woerkom.
“Although the inventory shortage won’t remedy itself this year, price appreciation is expected to taper off towards the end of the year and we anticipate an active homebuying season this spring.”