With spring just around the corner, seems like the time to take a look at what’s been happening with the real estate market and what may unfold in this spring market.
Last year continued the torrid seller’s market, that is until we hit mid-October. The market really slowed down once the holiday schedule kicked into gear.
Homes that would have take 3 days to sell earlier in the year took 30 days. Still a relatively quick sale based on history, but slow by comparison!
The market seems to still be in that mode with spring around the corner.
Here’s what I’m expecting:
- A tamped-down seller’s market. There is still historically low inventory, but rising interest rates will slow down buyer demand a bit. The contractor shortage is keeping new construction from filling in the inventory gap. I have a new build closing this week that took 8 months to complete, which is about 2 months longer than usual.
- Interest rates will continue to creep up. Last year the 30 year fixed interest rate popped over 5% for the first time in many years. I’d look for another bump this year, but hopefully nothing crazy. I’m expecting the 30 year to top 6% in maybe two years.
- Buyer demand will tapper, a little. Most homes will still be selling in 30 days or less, but I’m not expecting as many hairy multiple offer situations as we’ve had over the last few years. You’ll still see this frenzy in some local markets, but overall I’m expecting a bit more sanity this year.
- Moderating property appreciation rates. The central Ohio market will see continued appreciation, but probably not as steep as the last 3-4 years. Many areas have seen double digit appreciation the last couple of years. I’m expecting a moderating of that crazy growth rate. That rate is just not sustainable in the long run. But you can still expect a solid 5% appreciation in general. More or less than that in specific neighborhoods.
My forecast may be all wrong. You never really know what’s going to happen or what did happen until you’re looking in the rear view mirror. But based on what I’m seeing and reading, this will be another steady and brisk Columbus market.
I’m always happy to do a free market evaluation on your home if that would be helpful to you.
Enjoy the last few weeks of winter!