No Relief for Home Buyers: Sellers In Control As Inventory Stalls
The median price rose 3.6% MOM in March to $300k and 90% of Central Ohio school districts are seller's markets. In March, new listings for homes under $300k decreased by 7% compared to last year, while homes over $300k saw an 8% increase. In recent years, Central Ohio's housing market has faced challenges with low inventory growth, few new constructions, high demand, and increasing interest rates, making it tough for home buyers looking for a deal. Demand continues to outpace supply and there are no signs this will change anytime soon.
Download the April Market Status Report Here
In assessing the current market status, our focus lies on the absorption rate, also known as months of supply. This key metric is derived by dividing the available inventory by the number of closed sales for a time period.
Market Categorization:
Strong Sellers Market: An absorption rate below 2 indicates a strong seller’s market.
Sellers Market: Having 2 to 4 months of supply falls under a seller’s market category.
Balanced Market: Falling within the 4 to 5 months of supply range signifies a balanced market.
Buyers Market: A market with 5 to 7 months of supply is classified as a buyers market.
Strong Buyers Market: The scenario where there are 7 months or more of supply represents a strong buyers market.
Segmentation for Analysis: To provide a comprehensive market status report, the absorption rate breakdown is conducted based on price categories and school districts. This approach allows for a detailed understanding of the dynamics within different segments of the real estate market in our area.
By regularly monitoring and dissecting the absorption rates across various segments, we are equipped to offer informed insights and guidance to both buyers and sellers navigating the ever-evolving real estate landscape. Regardless of the chart results it is important to consult with a realtor and do your own research when buying or selling real estate. Markets move fast and it's important to check the latest inventory figures and comparable sales.
