Despite more inventory, home prices continue to rise
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Central Ohio homes are staying on the market longer and inventory is increasing, yet prices are still rising.
Why it matters: Columbus badly needs more available houses, and an increase in properties for sale should trigger price declines — but the latter is not yet borne out in the market.
Driving the news: Columbus Realtors recently released its April housing report, which shows an uptick in home prices for nearly every area county.
By the numbers: Across the region, closed sales were down nearly 14% year over year, while new listings (+7.8%), days on the market (+21.9%) and inventory (+13.4%) were all up.
- In Franklin County, 2,222 homes were for sale in April (up from 1,920 last year) and listings stayed on the market for an average of 31 days (up from 27).
Yes, but: Prices are still rising in most counties.
- The average Franklin County sale price was $391,617, a 5.9% increase from last April.
- Only Perry (-9.2%), Madison (-7.4%), Union (-4.2%) and Knox (-3%) counties saw prices drop.
Context: Central Ohio demand noticeably shifted toward the suburbs early this year.
- Counties with the highest increase in new listings are on the outskirts of what Columbus Realtors considers Central Ohio.
- Fayette (+93.3%), Hocking (+34.7%) and Logan (+22.9%) lead the way.
What they're saying: Columbus Realtors president Gloria Alonso Cannon said April's numbers "tell an interesting story," but warned in a news release against expecting prices to drop with demand.
- "I understand why people see slower sales and immediately wonder if prices are about to drop. The reality is that central Ohio is simply normalizing after years of unprecedented demand."
Zoom out: Across the country, demand and prices for luxury homes (those priced in the top 5%) are rising faster than for middle-market houses.
- The median U.S. luxury home sale price rose 3.6%, to $1.39 million, in the three-month period ending April 30, according to Redfin data.
- That's double the increase for non-luxury homes, which gained just 1.4% to $377,734.
Between the lines: Real estate and building experts suggest the disconnect comes from a thriving upper class amid stagnant growth for everyone else.
- One expert tells Axios "AI money" is driving increases — another says "affluent" customers are resilient despite "challenges facing the broader market."
🔍 The other side: Looking for a bargain instead of luxury? Nextdoor ranked cities' most affordable neighborhoods. Our top five:
- No. 1: West Broad
- No. 2: Southeast Hilltop
- No. 3: South End
- No. 4: Broad Lawn
- No. 5: Franklin