Real Estate Laundry » How Spooky is the Columbus Real Estate Market?

How Spooky is the Columbus Real Estate Market?

November 2nd, 2007 categories: Columbus, Financing, Local Communities, Real Estate News

Spooky

This was the scene outside our house on Wednesday evening as we participated in the annual trick or treat ritual. I must say the creature I created scared his share of kids, thanks particularly to the loudspeaker and microphone which allowed me to act as his voice. It was a great time and I am sure kept some of the smaller children up that night long past their bedtimes. It was, as I had hoped, pretty scary.

But talk about scary, what’s up with the housing market? If you relied solely on the media to fill you in, you might think we are hurtling towards the end of the world and all of our homes will be worth nothing soon. Not so, I say!

Recently I wrote about a Forbes article selecting Columbus as the 3rd most stable housing market in the country. For me, this came as no surprise as Columbus has historically exhibited stability in terms of economy, housing and jobs without the wild home price fluctuations seen in some of the most troubled markets.

Stats%20Sep%2007

The table above showcases statistics for September 2006 vs. 2007 as well as year to date statistics vs. the same period last year. These are figures generated by the Columbus Board of Realtors. I will acknowledge that these are not what we would hope to see in a thriving market. At the same time, it could be much worse. Though total listings sold are down, so is the number of new listings which have entered the market.

As for a dramatic crash in home values, we have seen only 1.6% decrease in average sale price year to date. I fully believe this is indicative of a correction brought on largely by poor lending practices and people overextending themselves. As with any correction, it will take time, however it will also bring with it opportunity.

For Buyers this is a wonderful time to be in the market for a home with:

Many homes to consider
Low interest rates
Motivated Sellers

For Sellers, as I have said for some time now, it can be a great time to sell if you condition your home properly and are realistic about price.

As far as what is to come, I think most real estate practitioners would agree the somewhat sluggish conditions we have been experiencing will not go away over night. But don’t scream and don’t shiver with fright. It’s just not that spooky!

Markets go up and markets go down. Be glad Columbus isn’t primed for the swings other markets see. Take what you read in the paper and see on TV with a grain of salt and if Buying or Selling is in your future, find a good real estate professional and learn the truth about the market as it relates to your objectives.

Related Must Reads: Columbus Housing Market, Buying a Home in Columbus

This entry was posted on Friday, November 2nd, 2007 at 1:46 pm and is filed under Columbus, Financing, Local Communities, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Chris Johnson said at November 3rd, 2007 at 8:33 am
Eric-

I don’t know, man if it *is* or isn’t a good play–long term–to buy or not. It can be, obviously as aggregated data should only be one part of an analysis. And there are good opportunities for a homeowner to have more house than could have been bought in 2005 at roughly equal interest rates.

Columbus won’t have the variance of the other costal markets.

The biggest threat is the availability of funds for marginal buyers. TODAY there are programs, but as we are seeing Massive defaults in recently originated “my community” loans, down payment requirements will increase across the board. When someone can’t move from their $160k house to a $240k listing, the $240k price is pressured, too.

Things haven’t changed–80-90% of the people that could buy in 2005 at the height of program availability are still able to buy. When that changes, and goes to 60-70, then we’ll know what the fate of the market will be.

You’re right–it’s more important than ever to work with a professional Realtor, and go in with your eyes open.