Five numbers to know about Columbus real estate in 2023
National and local Realtor groups released year-end data Friday that show where the housing market has been and where it's going. For Columbus-area homeowners and shoppers, here are five numbers to know:
Homes sold: 31,885
What happened: Sales of Columbus-area homes fell 12.6% from 2021 to the lowest level in four years, as climbing interest rates knocked new buyers out of the market, along with move-up buyers who didn't want to trade their 3% mortgage for one with twice the rate. The decline in the sale of central Ohio homes is the sharpest annual drop since 2008, when the housing market crashed.
What's ahead: Experts forecast sales to remain down in 2023, given interest rates and the expectation that the nation will slide into recession. Lawrence Yun, chief economist with the National Association of Realtors, for example, predicts that home sales will decline nationally 6.8% this year. Columbus-area housing, however, is widely considered healthier than the nation's, and Realtor.com projects central Ohio home sales to rise 4.6% this year.
Median price: $290,000
What happened: Despite the decline in sales, home prices continued to escalate in the Columbus area in 2022, illustrating that those buyers left in the market are still competing. The median sales price of $290,000 was 11.5% higher than the previous year, the third year in a row central Ohio home prices rose by double digits.
What's ahead: Home price remained strong throughout the year, but tapered off as the year advanced, pointing toward more modest gains in 2023. Most experts forecast home prices to remain largely flat in 2023. Yun, for instance, projects a 0.3% price rise nationwide. However, he notes, prices will vary widely by location and areas that have seen extreme price hikes, such as California, are likely to see the biggest declines. Zillow is forecasting the Midwest to have the nation's healthiest housing markets this year and Realtor.com says Columbus will be the nation's 14th healthiest housing market in 2023.
More:Columbus real-estate agents scrambling following Corcoran Global Living meltdown
Days on market: 18
What happened: It took slightly longer to sell a central Ohio home last year than in 2021, when it took an average of 16 days. Historically, 18 days is still an extremely fast sales pace, again suggesting that competition remains high among Columbus-area buyers.
What's ahead: But homes also stayed longer on the market as the year wore on. In December, the average home sold after being listed 29 days, well above 18 days a year earlier. Sellers may need more patience as the year advances.
New listings: 36,348
What happened: As any home shopper knows, there has been a tremendous shortage of homes for sale in the Columbus area the past few years, helping account for the intense competition and price hikes. Buyers have snatched up homes as soon as they are listed, but homeowners are also reluctant to sell. Last year, 36,348 homes were listed, 9% fewer than the previous year.
What's ahead: In December, the number of homes listed fell 23% from, the previous year, suggesting that the number of homes on the market will remain constricted, especially as new home builders also start to pull back. The shortage of homes is likely to keep competition high, helping offset the impact of interest rates. That's good news for home sellers, but not buyers.
More:Columbus leads Ohio cities in home prices
Price gain: 38.2%
What happened: Last year's price gains cap three years of unprecedented price hikes in Columbus. The median price of a central Ohio home has now risen from $209,900 to $290,000 since 2019, by far the biggest price increases seen in the area. Even in the height of the housing boom in the early 2000s, Columbus-area home prices were rising only 4% or 5% a year, healthy by historic norms but nothing close to what has happened the past few years.
What's ahead: While such price hikes won't last, those looking for Columbus-area home prices to drop this year might be disappointed. Realtor.com projects that Columbus home prices will rise 5% this year, more in keeping with a healthy, but not crazy, market.
jweiker@dispatch.com
@JimWeiker
This article originally appeared on The Columbus Dispatch: What's in store for the 2023 Columbus housing market
