The Central Ohio Real Estate Forecast
January 2006
No Housing Bubble In Columbus, Ohio
In the Columbus, Ohio area we have not seen unsustainable gains in home prices. What we have
seen in the Columbus area is a turn from a "sellers market" to a "buyers market" in the suburban
neighborhoods. These are two terms used in real estate to describe supply and demand.
There has been quite a bit of talk in the news lately about a housing bubble. This has been fueled by
the double-digit growth rates being seen in some areas of Florida.
What is a housing bubble? A housing bubble refers to an unsustainable
gain in home prices.
A sellers market occurs when there are a smaller number of homes for sale relative to the number
of buyers. In a sellers market the home prices go up faster due to the shortage of supply. If you have three, four,
or more people all wanting to buy the same house, there is competition and the sellers will be able to get more
money. In this situation it is not unusual for the buyers to offer more money than the sellers are asking.
A buyers market occurs when there are a larger number of homes for sale relative to the number buyers. In a
buyers market the home prices do not go up as fast and may even remain at the same level or decrease, depending on
other factors such as the number of jobs and population growth in the area.
What effect will a buyers market have for those selling in the suburbs?
- A slower growth in home values
- It will take a longer time to sell a home
- Sellers will need to carefully consider an offer, being willing to lower the price or see the buyers go
elsewhere
Price is a big factor in the time it takes for a home to sell. Whether you are buying or selling, having
an experienced realtor who tracks neighborhood statistics means you can count
on them to know the value of a home.
Downtown Columbus, Ohio condos are hot! The growth of the arena district and the Short North area as well
as actions taken by the city have spurred a demand for housing in the downtown area. This area is seeing a turn from
a buyers market to a sellers market.
Builders are building condominiums and townhomes in the downtown area as fast as they can. The city has seen the
potential benefits of this growth and instituted tax abatements for those areas where the building greatly improves
the area. It is a win-win situation for everyone!
For details on downtown, Short North, Arena District, German Village, and Brewery District condominiums, see my
Columbus Ohio Condo page. I keep track of prices, availability, and provide
a map showing the locations of the condominiums.
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