Home sale prices exceed listing prices in July
After three months of less-than-normal housing activity due to the COVID-19 shutdown, central Ohio saw a spike in home sales last month. The 3,536 homes sold in July were 12.2 percent higher than June and 6.1 percent higher than last year according to the Columbus REALTORS® Multiple Listing Service. More than 4,100 homes and condominiums were put in contract during the month, which was just 11 homes shy of the previous month, but 9.0 percent higher than July of 2019.
For the first time in central Ohio history, sale prices exceeded list prices last month as many buyers paid more for a home than it was listed for sale.
“For most buyers paying more than the list price goes against the grain as negotiation is traditionally a part of the home buying process,” said Andy Mills, 2020 Columbus REALTORS® President. “However, due to high demand and low supply, competition is stiff so buyers must decide how much the home is worth to them when deciding how much to offer.”
There were 3,812 residential homes listed for sale during the month of July, which was just short of the previous year, but 7.3 percent higher than June. Even with the increase in new listings, inventory remained 41 percent lower than last summer leaving central Ohio again at 1.1 months supply of inventory at the current sales pace. Home sale prices continued their upward trend as the average sale price in July was $278,044, up 10.4 percent from last year and the median sale price of $245,000 boasted an 11.4 percent increase over July of 2019.
“Although the shortage of new homes built over the past decade has contributed to our housing shortage, our local builders have been very active this summer, providing a welcome influx of new home inventory,” added Mills. “As every single-family home built produces 2.9 jobs and $130,000 in tax revenue, this will also be a boon for the Columbus region as we work to repair the economic damage caused by the virus-induced shutdown.”
During the month of July, homes under $350,000 sold in an average of 20 days. Homes sold between $350,000 and $500,000 took about 33 days to sell. Homes sold between $500,000 and $700,000 sold in an average of 44 days and homes over $700,000 took an average of 71 days to sell.