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Are home prices cooling off?

By
Real Estate Agent with RE/MAX Stars Realty

The housing market is experiencing a shift that few people are talking about but that doesn't mean it isn't happening.  Over the last 20 years the Columbus, Ohio and Central Ohio housing market has experienced a 136% appreciation.  What is going to be hard for a lot of people to believe is that the 136% increase includes the down market that we experienced between 2006 through 2011 when home values actually went down.  That makes the 136% increase in appreciation even more impressive.  

The photo above clearly shows that during the last 13 years the Columbus, Ohio and Central Ohio housing market has experienced significant levels of appreciation in home values by a much as 15% in a single year.  Take a close look at the 2024 numbers on the right side of the photos and you will see that the appreciation for the 1st 6 months in 2024 is barely over 1% compared to 8.5% appreciation in 2023.  This is an indication that the demand for available homes is cooling off.  I believe there are a few contributing factors to the lower appreciation numbers but the biggest shift is that there are more homes available to buy today than there were ij 2023.  Last year there was an extreme shortage of available homes and there were still a lot of homes that received multiple overs with many selling over asking price.  Today, fewer homes are selling above the asking price and homes on average are taking a bit longer to sell.

You may be wondering if the sky falling in real estate?  No, not at all and believe it or not but in Central Ohio and Knox County Ohio which is the primary community that I serve we are still in a sellers market.  My recommendation is to watch the market, pay attention to how long homes stay on the market before they sell and what are the average listing to sales price ratios in your community.  Arming yourself with this information can be VERY helpful and you will have a better understanding of where the local housing market is headed.

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Sam Miller of REMAX Stars Realty 740-397-7800 SamMillerSells.com 

Comments(8)

Michael Elliott
Fathom Realty - Burlington Township, NJ
Burlington, New Jersey Residential Sales

Sam interesting topic, and I think they are in my area just a bit, but not in every pocket.  

Oct 01, 2024 02:58 AM
Sam Miller

Thanks Michael for commenting.  Same with me, some areas and price ranges are still crazy hot and others are cooling off a bit.  Still low supply compared to a balanced market but improving for the buyers - Sam 

Oct 01, 2024 04:19 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Great blog & market update Sam, very timely. Of course every market is different.

Watch the market, pay attention to how long homes stay on the market before they sell and what are the average listing to sales price ratios in your community.  Arming yourself with this information can be VERY helpful and you will have a better understanding of where the local housing market is headed.

Oct 01, 2024 04:02 AM
Sam Miller

Thanks Sham for commenting!  It is interesting to watch the trends and housing affordability is driving a lot of the shift in our market - Sam 

Oct 01, 2024 04:20 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Sam,

I really like your non nonsense approach to the question "Are home prices cooling off?" Real Estate is local and even locally there are pockets hot but in general things are cooling off.

Oct 01, 2024 05:11 AM
Sam Miller

Thanks Dorie and I appreciate you commenting.  It will be interesting to see the year end home sales numbers from across the country - Sam 

Oct 01, 2024 06:47 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have seen them cool off a bit in my area, but at the same time, there still seems to be a steady rise, just not at the rate it has been in the recent past.

Oct 01, 2024 05:50 AM
Sam Miller

Thanks for commenting Brian!  I agree with your comment and I feel like some of the buyer "RUSH" has calmed down and the multiple offers are fewer in most price ranged but there are certainly some areas where homes are still selling quite fast - Sam 

Oct 01, 2024 06:49 AM
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning Sam. Buyers and sellers in your area should seek your counsel and become educated before they pull the trigger. Enjoy your day.

Oct 01, 2024 06:08 AM
Sam Miller

Thanks for commenting Wayne and I appreciate your kind works - Sam 

Oct 01, 2024 06:49 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

As long as inventory levels are as tight as they are, the prices will remain at their levels with a minimal if any lowering.

Oct 01, 2024 06:17 AM
Sam Miller

Thanks for commenting Ed!  In Central Ohio we are seeing more listing inventory coming on the market so buyers have more choices and this is contributing to a slightly higher number of days on market for many of the homes that would have sold within just days back in 2023 - Sam 

Oct 01, 2024 06:52 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Morning Sam Miller 

Prices could be cooling in some areas. Here in Massachusetts prices are still rising. There is much demand and with the FED dropping rates and devaluing the dollar I expect prices to continue rising

Oct 01, 2024 07:42 AM
Sam Miller

Hi Doug, I love hearing that your market is still red hot and I am betting your available supply of homes for sale is lower than normal.  In Central Ohio we are seeing housing inventory levels increasing and the days on market is starting to increase.  We have also been seeing price reductions and listing expirations which we didn't see much of in 2023 - Sam 

Oct 01, 2024 07:50 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker
Great information, thanks for sharing.  I hope you have a great day.
Oct 06, 2024 04:46 AM
Sam Miller

Thanks Richard!  We have pockets of the housing market that are still red hot with buyer activity and other pockets that are starting to fill up with new listing inventory and many of those pockets are showing signs of cooling off - Sam 

Oct 06, 2024 09:52 AM