As central Ohio is in the midst of the most competitive housing markets in history, the share of all-cash buyers has been increasing over the last year. In 2021, 21 percent of buyers paid all cash compared to 16.1 percent in 2020.
Conversely, the share of buyers choosing conventional financing dropped to 62 percent last year versus 65 percent during the previous year. And FHA and VA financing both dropped by just one percent according to the Columbus REALTORS® Multiple Listing Service (MLS).
Continuing this trend, the share of all cash buyers jumped to 24.3 percent and conventional financing dropped to 59 percent during the first two months of 2022.
“As competition remains fierce and home prices continue to escalate, offering cash to purchase a home is a strategic move for some buyers,” said Sue Van Woerkom, 2022 President of Columbus REALTORS®.
“Another option for those needing to finance their purchase would be to use cash reserves to cover the appraisal gap if there is one. That means the buyer would pay the difference between the fair market value determined by the appraiser and the amount they agreed to pay for the home.”
“Homeowners today have, on average, more equity in their homes than ever before which can translate to supplemental cash. And the stock market boom over the last couple of years has enhanced many investors portfolios, providing another option for additional cash.”
February home sale prices were up 11 percent and most homes have been selling for more than the listed price taking, on average, 24 days to go into contract.
However, the time it takes a home to sell is heavily determined by its price.
The month ended with 1,745 homes on the market, which is a 3.3 percent increase from last year. This was due, in great part, to the five percent bump in new listings.
Home sales were up 1.8 percent, but pending contracts were down one percent compared to the previous year.
“It’s not too surprising that we had fewer homes go into contract in February as we had some pretty frigid temperatures last month,” add Van Woerkom. “Housing activity has already started to ramp up again with the spring weather and we’re expecting increased activity into the spring and summer.
February 2022 Housing Report
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Columbus REALTORS® is comprised of almost 10,000 real estate professionals engaged in residential sales and leasing, commercial sales and leasing, property management, appraisal, consultation, real estate syndication, land development and more.
The Columbus REALTORS® Multiple Listing Service (MLS) serves all of Franklin, Delaware, Fayette, Licking, Madison, Marion, Morrow, Pickaway and Union Counties and parts of Athens, Champaign, Clark, Clinton, Fairfield, Hocking, Knox, Logan, Muskingum, Perry and Ross counties.
To view residential properties for sale, visitHomes.com.
To view commercial properties for sale or lease, visitCrexi.com.
