Columbus home prices leap 17% in Oct.
Central Ohio home prices jumped an unheard of 17% in October, as demand for houses remains relentless during the coronavirus pandemic.
Buyers paid a median of $239,900 for a Columbus-area home last month, $35,000 more than they paid a year ago.
The story is the same statewide, where prices jumped 16.2% from last October. In some areas, including Lancaster and Chillicothe, prices were up more than 25% from a year ago.
The figures for October are the latest in a historic leap in home prices since the pandemic forced people to stay home.
Through the first 10 months of this year, central Ohio median sales prices are up 9.5%. But the big — and unprecedented — jump has taken place during the past four months, while the pandemic has been in full force.
"Every time we think that this year’s existing home sales wave may have finally crested, another month of data comes in that blows past expectations," said Zillow economist Matthew Speakman.
"Despite persistent economic uncertainty and the worsening spread of COVID-19, it’s abundantly clear that home shoppers are eager to re-assess their living situations."
Central Ohioans bought 3,234 homes in October, 19.4% more than a year ago, according to the Columbus Realtors trade association. Statewide, sales rose 16.5%, according to the Ohio Realtors association.
As buyers know, finding those homes is often an exercise in exhaustion and frustration, as properties can attract multiple offers over asking price the moment the yard sign appears.
Homes that sold in October had been on the market an average of 19 days, down from 31 days a year ago. But many homes are in contract within a day or two. And they sell for more than list price: Homes that sold in October commanded an average of 100.3% of their asking price.
The market is helped by historically low mortgage rates, which this week fell to 2.72% for a 30-year loan.
However, experts say the pandemic is the main fuel to the fire, as families desperate for more space seek a home
with an office, a yard or another bedroom.
"Sales have been driven by very strong demand factors, including record low mortgage rates, a strengthening labor market, and a continued desire for 'space' amid the pandemic," said Nationwide economist Daniel Vielhaber.
"Furthermore, the pandemic is allowing for increased distance between home and work as more jobs permanently convert to work-fromhome, making suburban and rural areas a realistic option for some who had been living closer to the office."
Nationally, home sales rose for the fifth straight month in October, up 4.3% from September and 26.6% from a year ago. The median price of a U.S. home jumped 15.5% from a year ago.
Few experts expect the housing market to slow down anytime soon.
“With news that a COVID-19 vaccine will soon be available, and with mortgage rates projected to hover around 3% in 2021, I expect the market's growth to continue into 2021,” said Lawrence Yun, chief economist with the National Association of Realtors. jweiker@dispatch.com @Jimweiker