Rising interest rates and inflation continue to take a toll on central Ohio home sales.
June home sales dropped almost 10 percent compared to last year's figures. Sales for the first six months of this year are about 2.5 percent behind the first half of 2021, according to Columbus Realtors. Pending sales in June were down nearly 14 percent suggesting that July sales will also see a year over year decline.
“Higher interest rates and inflation along with escalating home prices are all working in combination to reduce buying power,” Columbus Realtors President Sue Van Woerkom said. “Being able to afford less house today than you could six months ago is quite a shock so home buyers have a lot to consider right now.”
In the second quarter, two of every three homes sold for more than the list price. But that competition has also led to more cash sales. Since 2020, cash sales have increased seven percent while the use of conventional and FHA financing both declined slightly.
The median price of $287,500 during the first half of 2022 marks a 14.5 percent increase from a year earlier. The average price of $330,002 represents an increase of almost 13 percent.
Statewide home sales last month fell nearly 7 percent from June 2021 figures, according to Ohio Realtors. Twelve of the 15 markets tracked around the state experienced an increase in average price. Six markets showed an increase in sales activity compared to a year ago.
