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Ohio’s May Housing Report; Tight inventory of homes for sale and rising asking prices
By Carl Horst, OAR Director of Publications/Media Relations
The latest review of the Ohio housing marketplace shows a continued increase in asking prices and a slight rise in the number of days homes are being marketed for sale compared to May 2015. Overall, the Buckeye State is continuing to confront the ongoing challenges posed by a tight inventory levels of homes listed for sale.
New data from REALTOR.com shows that the 2016 home buying season is in full swing, with homes in May moving as fast as we've seen since the housing recovery began – even as asking prices continue to hit new record highs.
Based on preliminary May data, the median age of properties on REALTOR.com in May was 65 days, which was one day faster than a year ago and two days faster than last month. The median home was listed at $250,000 – 9 percent higher than one year ago and 1 percent higher than April. For-sale housing inventory also continues to increase on a monthly basis, but is still lower than one year ago.
"Based on our final read of demand and supply data in May, this spring's real estate market is coming in strong, just as we expected," said Jonathan Smoke, chief economist of REALTOR.com. "Pent-up demand and low mortgage rates are driving consumers into the market with urgency. However, the recurring issue of limited supply is leading to record-high prices.
"Thankfully we are finally seeing gains in new single-family construction and new home sales to provide a pressure release. Potential buyers are finding they can avoid a competitive bid situation if they elect to sign a contract on a home to be built. As the share of new homes sold goes up, we should eventually see signs of more balance in the existing home market, like lower price appreciation. However, we clearly aren't there yet."
Compared to the findings from a year ago, all nine Ohio markets tracked reported an increase in the median list price in May. A majority of cities experienced tighter inventory levels and longer market time compared to May 2015 levels.
May 2016 vs. May 2015
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"While we're continuing to see significant progress within the Ohio housing market, the low inventory levels in many areas is a challenge," said Sara Calo, president of the Ohio Association of REALTORS. "The shortfall in inventory is resulting in higher list prices and a factor in quickening the pace of sales."