As central Ohio is in the midst of the most competitive housing markets in history, the share of all-cash buyers has been increasing over the last year. In 2021, 21 percent of buyers paid all cash compared to 16.1 percent in 2020.

Conversely, the share of buyers choosing conventional financing dropped to 62 percent last year versus 65 percent during the previous year. And FHA and VA financing both dropped by just one percent according to the Columbus REALTORS® Multiple Listing Service (MLS).

Continuing this trend, the share of all cash buyers jumped to 24.3 percent and conventional financing dropped to 59 percent during the first two months of 2022.

With competition remaining fierce and home prices continuing to escalate, cash offers are a strategic move for some buyers. 

An alternative option for those needing to finance their purchase would be to consider using cash reserves to cover appraisal gaps if there is one. In this case, the buyer would cover the difference between the fair market value as assessed by the appraiser  and the amount for which the buyer agreed to buy the home.

On average, homeowners today have more equity in their homes than ever before; this can translate to supplemental cash. Further, the stock market boom over the last few years has enhanced many investors’ portfolios; this provides another option for additional cash,

February home sale prices were up 11 percent and most homes have been selling for more than the listed price taking, on average, 24 days to go into contract.

However, the time it takes a home to sell is heavily determined by its price.

The month ended with 1,745 homes on the market, which is a 3.3 percent increase from last year. This was due, in great part, to the five percent bump in new listings.

Home sales were up 1.8 percent, but pending contracts were down one percent compared to the previous year.

It’s not surprising that fewer homes went into market went into contract this February of 2022. This is likely a result of the frigid temperatures we experienced. Data indicates the housing market is beginning to ramp up with the (slowing coming!) spring weather; many professionals expect this to continue accordingly as we get further into spring and subsequently into the summer.