Skimpy inventory pushes prices up

Central Ohio home sales fell in May for the second straight month while prices reached record highs.

Despite strong demand, sales slipped 0.8 percent compared with last May, according to the Columbus Realtors trade group.

Sales were dampened by a lack of homes on the market and by rising prices. The median price of a Columbusarea home rose to $190,000 in May, 7.3 percent above last May. For the first five months of the year, central Ohio home prices are up 6.1 percent from the same period last year.

“These are the highest sales prices we’ve ever seen in central Ohio,” Columbus Realtors President Mic Gordon said. “Home values continue to soar.”

More than 4,000 central Ohioans put their homes on the market in May and most were quickly snatched up.

Central Ohio homes sold in May after being listed an average of only 33 days, a record low.

Homes sold so fast that the Columbus area was identified by Realtor.com as the nation's seventh-hottest market in May. Columbus provided a rare Midwest presence in the top 10 on the list, which is typically dominated by West Coast and Texas cities.

And though the market is great for central Ohio home sellers, it's a big challenge for buyers, who often find themselves in bidding wars.

Consider one common yardstick of a housing market: the "month's supply" number. It represents how long it would take for all homes to sell in the market at the current sales pace. A six-month supply of homes is considered well-balanced between buyers and sellers. But right now, central Sales Median price Days on market Akron/Cleveland Cincinnati Dayton Toledo 3,203 $177,000 45 Ohio has less than a two-month supply of homes.

Nationally, home sales rose 1.1 percent in May, reversing April's decline. The median U.S. home price rose to a record $252,800, up 5.8 percent from a year ago.

“The job market in most of the country is healthy, and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level,” said Lawrence Yun, chief economist with the National Association of Realtors.

“Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace, and the prevalence of multiple offers in some markets are pushing prices higher.”