We’re now through the 3rd Qtr, so it’s time to see how home sales compare versus prior years. There’s been much discussion as to whether we are or aren’t in a recession. I think the politicians have one opinion and people in the “real” world have another.
Some statisticians have looked hard for a glimmer of hope with some minor upticks to housing stats this past summer. Some of that was created by the 1st Time Buyer Tax Credit. While it helped to deplete low priced inventories, it’s being said that a lot of those sales were short-sales or bank-owned properties, which do nothing to sell UP to more expensive homes.
As you can see from the charts below, the number of homes sold so far this year is substantially below what was sold in 2005. Some experts say that a number of those people buying in 2005 should not have bought because they were doing 100% financing or they were poor credit risks. Perhaps, we should not expect to return to 2005 levels. It is good that now buyers are being expected to “have some skin in the game” with down payments.
| 2005 | 2006 | 2007 | 2008 | 2009 | |
| # of Homes | 1983 | 1908 | 1797 | 1598 | 1429 |
| % Chg | - | -3.8% | -5.8% | -11.1% | -10.6% |
| Avg Price | $306,352 | $311,652 | $303,299 | $294,747 | $273,098 |
| % Chg | - | +1.2% | -2.7% | -2.8% | -7.3% |
For the Jan-Sep period, 28% fewer homes were sold in Delaware County in 2009 vs 2005. The average price of those homes saw only an 11% decline. Franklin County was similar in that 31% fewer homes were sold in 2009 vs 2005 and the average price was just 13% lower. Considering what some states have encountered, having our prices go down such a small amount over a 5-yr period is really pretty good. The higher decline rates for the number of homes sold, is just indicative of fewer buyers being able to afford a home given the new lending guidelines.
| 2005 | 2006 | 2007 | 2008 | 2009 | |
| # of Homes | 11,549 | 10,726 | 10,015 | 9,157 | 7,932 |
| % Chg | - | -7.1% | -6.6% | -8.6% | -13.3% |
| Avg Price | $176,884 | $173,722 | $167,563 | $158,462 | $154,027 |
| % Chg | - | -1.8% | -3.5% | -5.4% | -2.8% |
SOURCE: Columbus Board of Realtors MLS system. Data is for single-family homes only. Builder’s homes are included only if they were listed in the MLS system. Condos are not included.
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