Home prices hit a record high in May as the average sale price of a home reached $353,116 and the median price was $310,830, up 12.1 percent and 13.0 percent, respectively.
The number of price adjustments has been decreasing as the housing market transitions from winter to spring and summer. Moreover, there have been fewer central Ohio homes experiencing a change in list price thus far in 2022 compared to last year.
Usually, 80-90 percent of homes never require a price adjustment prior to sale. Most changes are reductions of the list price which happened to 19.7 percent of homes in January and dropped steadily through the first five months to 8.9 percent in May.
“Seasons impact real estate more than you might think,” said Sue Van Woerkom, 2022 President of Columbus REALTORS®. “The colder months tend to keep some buyers out of the market so more sellers may reduce the price of their home to compete.”
“When the temperatures heat up, so does the housing market as more buyers start shopping for a new home. And the result is fewer price reductions.”
“But it’s critical to price your home appropriately from the start. Real estate professionals know the market and how the right price will significantly affect the time it takes to sell a home.”
Even though new listings ticked down (0.5 percent), home sales were up 7.5 percent in May, which was the highest month over month increase yet this year.
Homes continue to sell at a record pace. It took an average of 12 days to sell a home in May. However, homes between $215,000 and $350,000 only took nine days to sell.
“Homes in all price ranges are still selling quickly,” added Van Woerkom. “However, homes in that $215,000 to $350,000 range are the sweet spot right now as it includes many first-time buyers. Competition is fierce for these homes as we just don’t have enough to meet the demand.”
Contracts written in May lagged the previous year by 6.7 percent suggesting fewer closings in June.
“The rise in interest rates has significantly impacted the housing market,” added Van Woerkom.
“And the Federal Reserve’s move to raise its benchmark rate by three-quarters of a percentage point last week will likely sideline more home buyers.”