Home prices rose significantly in April
Home sale prices in central Ohio, which have been rising for the last several years, posted significant gains in April, due in great part to the increased demand and reduced supply. The average sale price of all housing, existing and new single-family homes and condominiums, was $291,900 in April, indicating a year over year gain of 16.6 percent which is the highest on record for any single month. Even with increased pricing, homes sold in an average of 16 days which is also a record low.
“The time it takes a home to sell is based on several factors such as location, condition, and price,” said Michael Jones, 2021 President, Columbus REALTORS®. “For instance, homes under $350,000 sold in an average of 13 days. Homes sold between $350,000 and $500,000 took about 19 days to sell. Homes sold between $500,000 and $700,000 sold in an average of 22 days and homes over $700,000 took an average of 45 days to sell.”
A recent study by the National Association of Home Builders found that regulations imposed by all levels of government on new homes account for $93,870, or 23.8 percent, of the current national average sales price ($397,300). And this doesn’t include how rising lumber and other material prices over the past 12 months have raised housing costs. According to the Building Industry Association of Central Ohio, the average cost of a new home in April was $378,850. Applying the same formula suggests that our local builders are dealing with roughly $90,000 in regulatory expenses per home. The primary cause for our housing shortage is local opposition to new development.
“As we’re experiencing unprecedented demand for housing in central Ohio, we need to be diligent in working together to reduce the regulatory burdens on our builders,” added Jones. “Given that each new home built adds 2.9 jobs and $130k in tax revenue, it is in our best interest to do so.”
April saw inventory tick up in April even though the 1,939 homes on the market at the end of the month remains 41.6 percent lower than last year. The 3,619 homes listed for sale in April was 32.9 percent higher than last year and 17 percent higher than March. In reaction, home sales increased 23.1 percent from last year and 12.5 percent from the prior month and contracts increased 18.2 percent year over year. Year to date (January through April), new listings are now up 3.1 percent and sales are ahead of 2020 by eight percent.