Fewer Foreclosures Driving Home Prices Up
Regional Spotlight—The Columbus, Ohio housing market reached an important milestone in 2012. During all four quarters of the year, the median home price rose above 2011 levels. Those four consecutive quarters of year-over-year gains are being driven by less supply, more demand and less downward price pressure brought on by foreclosures.
In fact, the number of active lender-mediated properties on the market is down over 50.0 percent from peak supply levels in 2010 and down 37.5 percent in the past year alone according to the 4Q-2012 Lender-Mediated Properties Report published by the Columbus Board of REALTORS®.
“The number of distressed properties on the market has declined significantly over the last couple years,” says Chris Pedon, 2013 President of the Columbus Board of REALTORS®. “But they are still conspicuously in demand.”
“For example, even though less than one in four distressed properties (21.4 percent) were listed for sale last quarter, they made up almost one third (30.8 percent) of the central Ohio sales. The previous year, 34.8 percent of fourth quarter sales were lender-mediated, yet these properties made up only 24.7 percent of the inventory.”
The drop in the share of Closed Sales from 34.8 percent to 30.8 percent has helped to enable a 9.8 percent gain in the Median Sales Price for the entire market, a significant indicator.
New Listings that were distressed decreased slightly from 33.3 percent during the fourth quarter last year to 32.7 percent this year.
Homes listed for $80,000 or below accounted for 44.6 percent of the distressed inventory at the end of 2012. Single family homes and condos listed between $80,000 and $160,000 made up 38.5 percent of the inventory. And 17.3 percent of the distressed homes for sale were listed for over $160,000.
“Because the demand exceeds the supply today, both distressed and non-distressed homes are selling more quickly,” adds Pedon. “During the fourth quarter, homes sold in an average of 83 days. Last year, it was taking an average of 101 days to sell a home.”
The Columbus Board of REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Licking, Madison, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Marion, Muskingum, Perry and Ross Counties.
For more information, visit ColumbusRealtors.com/stats.