Supply is Finally Outpacing Demand for Central Ohio Homes
The balance of power in the Central Ohio housing market is shifting as supply begins to outpace demand—a key indicator that the market may be cooling down. This cooling is also reflected in the Sold Median Sale Price:
Sold Median Sale Price:
July 2024: $329,000
June 2024: $335,000 ( 1.79%)
July 2023: $315,000 ( 4.44%)
Example: The slight drop in the median sale price from June to July, down 1.79%, suggests that sellers might be adjusting their expectations in response to rising inventory. Although prices are still higher than last year, the month-over-month decline is a sign that the market is cooling. For buyers, this could mean more opportunities to find a home at a better price as the market shifts away from the frenzied pace of the past few years.
Active Listings:
July 2024: 4,371
June 2024: 4,058 ( 7%)
July 2023: 3,465 ( 26%)
Example: The significant 26% increase in active listings compared to last year shows that more homes are staying on the market longer. This rise in inventory is a classic sign of a cooling market, where sellers might not be receiving multiple offers as quickly as they once did. For buyers, this means more choices and potentially less competition when making an offer.
New Listings:
July 2024: 3,656
July 2023: 3,315 ( 10%)
Example: New listings are up 10% year-over-year, adding to the growing pool of available homes. This increase suggests that more homeowners are deciding to sell, likely trying to capitalize on current market conditions before any further cooling. For buyers, this influx provides more opportunities to find a home that meets their needs without feeling rushed.
Months of Supply (Absorption Rate):
July 2024: 1.93 months
July 2023: 1.32 months ( 46%)
Example: The months of supply has jumped by 46% from last year, now sitting at 1.93 months. This metric indicates how long it would take to sell all current listings at the present sales pace. The increase suggests that homes are taking longer to sell, a clear sign that demand is not keeping up with the rising supply. For buyers, this is an encouraging trend as it often leads to less urgency, more negotiating power, and possibly even price reductions.
Sold Listings:
July 2024: 2,900
June 2024: 2,771 ( 4.80%)
July 2023: 2,634 ( 10.25%)
Example: Despite the rising inventory, 2,900 homes were sold in July, representing a 4.80% increase from June and a 10.25% increase year-over-year. While these numbers indicate that demand is still present, it's not enough to offset the growing supply. As a result, the market is showing signs of cooling, with more homes available and fewer buyers snapping them up immediately. This shift could lead to longer days on market and more favorable terms for buyers.
The Bottom Line: The increase in supply over demand is a strong indicator that the Central Ohio housing market may be cooling off. This cooling is creating more opportunities for buyers, with more homes to choose from, less competition, and the potential for better deals. For sellers, it means adjusting expectations and preparing for a market where buyers have the upper hand. As these trends continue, we could see a shift toward a buyer's market—something worth watching in the coming months.
Download the latest 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.
All data referenced from the Columbus Board of Realtors
