Columbus Real Estate, 4th Quarter Trends, 2012 Forecast

Posted by Shanna on Dec 21, 2011 in Blog, Local News, Market Trends | 0 comments

Today I am handing the blogging reins over to Melinda Carter, a creative writer from the University of Texas El Paso who is an aspiring writing specializing in real estate and travel.  Please give Melinda a warm welcome and some comments below!

Columbus Real Estate: 4th Quarter Trends and What Could be in Store for 2012

When analyzing the recent trends in the area, it’s important to realize that the Columbus real estate market is actually faring rather well in comparison to a number of other areas around the country. While this may be cold comfort to some potential buyers and sellers in the city, the market appears to be steadying out. With the trends throughout the country in the past few years, a steady market has become valued, while many experience a constant downturn.

The number of distressed properties in the area is remaining stable and doesn’t look like it is set to increase drastically. At present, there are about 4,000 homes with this status, counterbalanced by a similar number of homes on the market.

The median home price statistics have mostly remained unchanged during the outset of the fourth quarter of 2011. In fact, the price per-square-foot stood at $123 during this time, a 64 percent increase over the same time period last year. The median list price stands around $75,000, the same as it was at the beginning of November. While the median sale price has actually raised $11,000, or 14 percent since this time last year. The average sale price has been hovering around $87,000 since last year.

One area of intrigue for sellers is the fact that area rental rates continue to go up. This is particularly important considering the potential buyers who may be on the fence between continuing to rent and choosing to purchase their first home. Columbus apartments have gone up by eight percent since the outset of the year, adding an average of almost $50 dollars a month to each rental. This, combined with record low mortgage rates is a tipping point back towards buying.

When compared with the drastic price drops of the past two or three years, remaining relatively even is a telling sign. Perhaps the market, at least in Columbus, has achieved equilibrium for the time being. A hearty return to the boom days cannot be expected overnight. However, the local economy remains relatively healthy because of state employment.

A recent article in the Columbus business journal revealed that the city’s suburbs still rank high in quality of life among many Midwest metropolitan areas, which is inviting. With the area’s employment being more stable than most areas and state employment in the capital, Columbus could serve to prosper from out of town buyers in 2012. The problem in most areas has been local moves and that’s no different in Columbus, but factors such as low mortgage rates and raising apartment rates could tip potential buyers in the area in the right direction in 2012.

Shanna Lafontaine is a Realtor with RE/MAX Affiliates who works the Dublin, Hilliard, Powell, Worthington, Westerville, Delaware and surrounding Columbus areas helping both Buyers and Sellers.