Central Ohio Housing Report - February 2013

Central Ohio Housing Report - February 2013

Rents and prices rising in '13

Central Ohio home sales for the first two months of 2013 were up 19.6 percent (2,878), compared to last year (2,406). There were 1,452 home sales in February, which is 14.9 percent higher than in February 2012, according to the Columbus Board of REALTORS®.

“We haven’t seen sales increases like this since housing peaked in ’06 and ‘07,” said Chris Pedon, President of the Columbus Board of REALTORS®. “We are looking at a new housing market; one that’s smart and affordable, but also competitive.”

New listings added to the market in February totaled 2,880 – 5.9 percent higher than February 2012. The number of homes for sale in central Ohio inched up slightly from last month (8,935) to 9,035. Still, the inventory of homes for sale in central Ohio remains at its lowest point in more than a decade (summer 2002).
The median sales price of a home sold in central Ohio in February was $122,000, up 1.7 percent compared to one year ago ($120,000). The average sale price was $149,887, a slight drop (-0.6 percent) from the same time last year ($150, 757).

“The combination of increased sales and low inventory will drive up home prices in the months to come,” added Pedon. “As we head into the buying season, we’re going to see sellers get much more aggressive with their pricing.”

Rents are also rising due to demand. Although permits have risen, apartment construction slowed to a crawl after the housing boom and is still below historic norms and much of the available rental space was filled with displaced homeowners over the last couple years.

Rents grew 3.8% in 2012, up from 2.4% in 2011 and 2.3% in 2010, according to real-estate research service Reis Inc. The firm projects annual increases of 4% to 4.5% through 2016.

Central Ohio REALTORS® agree as 11 percent said rents have increased “a lot” since last year and 56 percent said rents have increased “somewhat” according to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®).