A similar trend will likely continue into next year, as a lack of available homes on the market will continue to be a challenge in 2017, said Matthew Watercutter, broker and senior regional vice president of HER Realtors. Low interest rates and demand from young buyers also led to higher prices in Ohio overall, he said.
“A lot of it is driven by first-time home buyers still and cheap money,” Watercutter said. “We’re still at historical lows for interest rates.”
The average 30-year fixed mortgage rate was 4.3 percent this week, up slightly from about 4 percent the same time last year, according to recently published data by mortgage giant Freddie Mac.
In Clark County, 1,332 homes have been sold so far in 2016, a slight increase compared to 2015. Home sales in Champaign County dipped slightly, from 444 last year to 411 this year, Harvey said. The combination of few available homes and pent up demand among local residents has pushed prices up even as sales have remained about flat, he said.
The lack of inventory also means residents who already own a home have stayed put, often opting to remodel their home instead of moving up to a bigger or more expensive property, Harvey said.
“There aren’t that many new builds,” Harvey said of new home construction. “Everybody is kind of competing after the same properties. It’s a combination of an improving economy and buyer confidence.”
Home sales and prices both increased across the Miami Valley, including November when there were 1,201 Dayton-area homes and condos sold, up 27 percent from November last year, according to the latest report from the Dayton Area Board of Realtors. On a year-to-date basis, both the average sales price and median sales price were up about 5 percent through November to $147,380 and $126,500, respectively, compared to the comparable period a year ago.
Both Watercutter and Harvey predicted a similar trend in 2017, with a lack of inventory and an improving economy driving up demand and home prices. Both experts also noted it’s possible the market will be more stable after a contentious and unpredictable election season recently ended.
“The number of sales will probably increase slightly but we’ll probably hold close to where we were at in 2016,” Watercutter said.
The biggest challenge for next year will likely remain the lack of available homes on the market.
“There’s a shortage of inventory and there has been for the last two years,” Harvey said. “That cycle is probably going to continue because you have an aging society and no new builds people can move up and into. We have kind of a finite supply here so what’s here is what’s here.”
Despite those challenges, Harvey said there’s been a noticeable, steady improvement as the economy has recovered in recent years.
“The market overall is very good,” Harvey said. “Every realtor is busy even through the holidays. Typically the middle of November to February 1 it’s usually a slower period but I know everyone is busy.”
The Springfield News-Sun will continue to provide unmatched coverage of jobs and the economy in Clark and Champaign Counties. For this story, the paper reviewed home sales in the region and spoke to state and regional experts about what consumers can expect in 2017.
BY THE NUMBERS
2.7 percent: Increase in home sales in Clark County
11.1 percent: Increase in sale prices in Clark County in 2016
1,295: Homes sold in Clark County in 2015
1,332: Homes sold in Clark County in 2016
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