Recently, Columbus Board of Realtors data revealed an interesting trend in Central Ohio's real estate market. The median home price soared to a new record of $330,000 in May, representing a substantial 2.3% year-over-year increase. This also marked a noteworthy 3% surge from just the previous month of April 2024. This uptick in prices can be attributed to the persistent scarcity of available homes for sale, even though there was a considerable 23% uptick in inventory when compared to the same timeframe in May 2023. Despite this improvement, overall inventory levels still linger at a notably low point, standing at 52% lower than the levels seen before the onset of the pandemic. While there was a positive 7% increase in new listings, they fall short in comparison to pre-pandemic levels by 23%, underscoring the ongoing challenge in fully addressing the demand. However, it is worth noting that there was an 11% monthly spike in new listings, reflecting some positive momentum. The supply currently stands at a slim 1.2 months, clearly indicating a robust seller's market, particularly within the Central Ohio school districts. On the other hand, the data also revealed a promising 5% increase in home sales compared to the previous year, signaling a consistent growth trajectory and sustained buyer interest in the region, despite the backdrop of escalating mortgage rates.

Download the May 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.