Is The Real Estate Market Headed for a Crash?

Is The Real Estate Market Headed for a Crash?
The Truth Unveiled

The NAR (National Association of Realtors) recently published information from its national research statistics on housing inventory. To read the related article go to:

http://www.realtor.org/reioutlook.nsf/pages/regionalperspectives?opendocument

Ok, everyone has an opinion on this so now here is mine, along with some facts.

In the Columbus area market, based on information from the Columbus Board of Realtors multiple listing system (CBR MLS), which now has 7,000 member agents and serves an 8 county area, as of January 24, 2006 there were 11,944 single family homes actively for sale in the MLS with an average of 115 days on market.

The number of homes for sale and the days on market are higher than past years. During the winter months of 2004-5 the number never went below 10,000 homes for sale. During prior years, the number would be around 7,000 to 8,000. We went into the year 2005 with a larger than prior year’s inventory and climbed during the year to a high of about 13,900 near the end of summer.

Likewise, the “days on market” has, in the few past years, been around 90 to 100. The current 115 average days on market is higher than we have seen in previous years.

The number of sold homes in 2005 was almost identical to 2004 and the beginning of 2006 has mirrored January 2005. Sales are still considered to be strong, however, the growing inventory is making the market more competitive for sellers and giving buyers an opportunity to negotiate more on price than in previous year’s markets.

Advice: If you are selling or considering selling this year, your home needs to be in top condition and priced right – not a bit toward the high end as we often did in past years. Top condition means updating, cleaning, painting etc. If your home is nearing or past 10 years in age, you need to update things like light fixtures, plumbing fixtures, counter tops, flooring, etc to be competitive. ( check out my upcoming program “Top 10 home improvements to increase the value of your home” offered through Westerville Parks and Recreation at: http://www.westerville.org/pdf/parks/parksbrochure.pdf see page 49).

There are still many buyers, interest rates are still below 6% in most cases and the buying market is still healthy in Central Ohio.

For more information or to discuss buying or selling property, give me a call at 614-766-5330 x119