CENTRAL OHIO MARKET UPDATE:

If you've been watching the Central Ohio housing market, August brought some interesting shifts, especially when it comes to the number of homes available. This isn't just a seasonal fluctuation; we're seeing signs that the market might be cooling down. Newark, Groveport, SW Licking, and Southwestern district markets are now in “balanced” territory above $500k price points. The slowdown is worse in Johnstown, Mt Vernon, and Heath, which are now “Buyer markets” with a glut of inventory and slow demand in the $500k+ price points.

Active Listings Are Up, But Still Below Pre-Pandemic Levels

- **August 2024:** 4,658 homes for sale

- **July 2024:** 4,371 homes (up 6.6%)

- **June 2024:** 4,058 homes

- **July 2023:** 3,465 homes (up 34.4% from July 2023 to August 2024)

**What This Means:** Active listings have climbed by 34.4% compared to this time last year. While the rise in inventory is giving buyers more options, it's important to note that even with this increase, the number of homes on the market is still far below pre-pandemic levels. This means while there are more choices for buyers than in the past couple of years, we haven't reached a point where inventory levels are truly abundant. For buyers, this uptick translates to less pressure to make snap decisions. For sellers, it indicates a need to adjust pricing strategies as homes are no longer flying off the market as quickly.

What Buyers Should Know

The increase in inventory means more choices and less competition than during the height of the pandemic market frenzy. However, the market hasn't fully swung in your favor yet. With inventory still lower than pre-pandemic norms, well-priced homes can still attract significant interest. The key here is to shop around, but don't expect a dramatic buyer's market just yet.

What Sellers Should Know

While active listings are up, the market is not saturated. Homes are still selling, just at a more measured pace. This means that while you might not see bidding wars with multiple offers right out of the gate, a competitively priced and well-marketed home can still sell well. Setting a realistic price upfront is crucial to attracting serious buyers in this evolving market.

Quick Highlights from Other Market Data

- **Sold Median Sale Price:** The median sale price in August 2024 dropped to $325,000 from $329,000 in July and $335,000 in June, showing a steady cooling. This 3% drop from June to August indicates sellers are starting to adjust expectations.

- **Months of Supply:** The months of supply increased to 1.64 months in August 2024, up from 1.51 in July and 1.32 a year ago. Homes are taking longer to sell, giving buyers more room to negotiate.

- **New Listings:** New listings in August 2024 decreased to 3,442 from 3,656 in July, suggesting some sellers might be holding back due to market uncertainty.

The Bottom Line

The Central Ohio housing market is showing clear signs of cooling, with active listings continuing to rise and prices starting to level off. However, the inventory remains below pre-pandemic levels, so while buyers have more options, it's not a free-for-all just yet. For sellers, this means being strategic and realistic with pricing. The market is adjusting, signaling a move toward a more balanced environment.

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