August 2008 Home Sales

Sales maintain while inventory decreases as market corrects itself

(September 24, 2008) Although traditionally a seller’s market, abnormally high levels of inventory over the past two years have been the key contributing factor for the change to a buyer’s market in central Ohio. However, the inventory of homes for sale has been decreasing throughout 2008. There were 16,975 homes for sale in the central Ohio area in August 2008 which is 14.2 percent lower than last year at the same time according to the Columbus Board of REALTORS®.

“Exceptionally high numbers of homes for sale over the past two years have made it appear that home sales were flailing,” says Greg Hrabcak, President of the Columbus Board of REALTORS®. “Although not the case, the fact that inventory levels are decreasing while sales are maintaining supports the market correction we’ve been anticipating.”

Although home sales today are not as high as during the housing boom, which started in 2003, sales are in keeping with pre-boom sales levels.

“Industry professionals know that the market has to take a breather after a boom in order to correct itself,” offers Hrabcak. “What most don’t realize is that, theoretically, home sales levels should be much lower to compensate for the inflated sales levels during the boom. The fact that our sales levels are in keeping with pre boom levels is actually strong evidence that the central Ohio housing market is healthy and stable.”

The average sale price of a home in central Ohio is down 4.8 percent from one year ago. “Again, this is due in great part to the high level of inventory. When you have a much higher number of homes on the market than buyers, the sale price of a home will drop in order to compete for the smaller pool of buyers,” adds Hrabcak.

“However, we’ve seen the average sale price creep up throughout 2008. The average sale price in August was $175,632 which is almost 15 percent higher than the average sale price of $152,790 back in January 2008!”

Additional Statistics

To view residential properties for sale, visit www.Realtor.com.

To view commercial properties for sale or lease in central Ohio, visit www.COCIE.org.