March was an amazing month in Central Ohio real estate, but will it last? (Svilen Milev/sxc)
There were 1,704 central Ohio homes sold during March announced by the Columbus Board of REALTORS in a release this past week.
This is 54.1 percent higher than the previous month and 25.3 percent higher than March of 2009. First quarter saw 3,873 homes sell in central Ohio which is 12.5 percent more than home sales during January through March of 2009.
There were 4,949 residential homes put on the market last month – a 44.3 percent increase over new listings the previous month and
32.8 percent higher than homes listed in March of 2009.
Bartek Ambrozik/sxc
“The central Ohio housing market is on fire right now,” exclaims Sue Lusk-Gleich, President of the Columbus Board of REALTORS®. “There’s no question the home buyer tax credits have a lot to do with our market activity. But the significant increase in listings as well as rising sale prices are clear evidence that our local market is regaining its strength.”
Is the central Ohio market really on fire?
That’s a darn good question.
I guess we’ll find out on May 1. That is when those buyers that buying due to the tax credit will either be in contract or have returned to the sideline. I’ve had several discussions with real estate agents and loan officers and the consensus is that the number of “in contracts” will decrease over the next month or so.
So, is the central Ohio market really on fire? Or did we simply pull the “summer 2010″ buyers into “spring 2010″?
Well now that’s an interesting discussion. However, we will not know the truth about that until after the 2010 selling season is over but we do have some signs.
- Sales will remain strong through early-mid June when the tax credit’s closing date expires on June 30.
- Tax credits got buyers interested in the market, but deals have kept them in the market. The pressure for the $8,000 first-time home buyer (or $6,500 move-up credit) got a lot of buyers looking at moving. However, the impact of short sales and foreclosures have led to a discount in the “value” of a good traditional home.
- Short sales and foreclosures are going to continue pressing traditional sellers in the market.
I don’t have a crystal ball, but I’m expecting the market to decline heading into the early summer as we finally reach bottom in this economy. It will be the bottom because the government has finally stopped artificially propping up the housing market.
Are you confident in the market?
You aren’t? I’m not surprised. How can you, when you don’t really know where the market is. It is similar to walking across a bridge on a very foggy day and you can’t see the other side, above, or below you. The only thing you really know is that the river’s bottom is below you. It could be a few feet or a mile. The lack of knowledge creates a lack of confidence in your ability to travel across the bridge — or the real estate market.
With the FED stopping its purchase of mortgage-backed securities and the expiration of the tax credit, the true “state” of the market is on the verge of being exposed.
And with exposure comes confidence. And with confidence comes decision.
And that’s what we need right now is an influx of confidence into the real estate market.
