Tag Archives: New Albany Real estate Forecast

Will 2017 Be a Buyer’s or Seller’s Market?

Buyers Road and Sellers Lane signsA common question as we enter the new year is “Will next year be a buyer’s or seller’s market?” Most economists agree that 2017 will likely remain a seller’s market. In some of our neighborhoods, the answer is obvious — we have been playing “catch up” on inventory all year. I expect the New Albany market to continue to skew toward sellers well into 2017, even with an uptick in mortgage interest rates. There are several pockets where inventory levels remain higher, primarily the +$1M market, that might be classified as a buyer’s market.

The National Association of REALTORS® defines a seller’s market as one with less than a 6-month supply of homes for sale. A balanced market will have a 6- to 7-months’ supply of homes for sale, and a buyer’s market generally has an 8-month supply or more. Supply varies from community to community as seen in the table below (based on inventory/trailing year sales as of 12/20/16):

Neighborhood Months’ Supply of Homes for Sale

CommunityMonths of Supply
New Albany Country Club (under $1M)4
New Albany Country Club (over $1M)12
Hampsted Communities2
New Albany Links Communities1
Windsor3
Preserve Communities1
Albany Park0

Where Will Mortgage Rates Go?

The consensus seems to be that mortgage rates will rise from the historically low interest rates we’ve enjoyed for the past eight years. In fact, we’ve already started to see an increase. When the Federal Reserve raises its rate, it inevitably puts pressure on rates that lenders charge for mortgage interest. We don’t believe the rates will increase to levels where affordability will be substantially impacted.

Key Takeaway for Sellers: If you are planning to sell your home in the next two years, 2017 is likely to be the better year in which to do so. Call us for more info: 614-939-8944.

New Albany Real Estate Forcast

Land HO!

 

What do you see on the horizon?  Are we through the worst of the storm?  How do you think New Albany Real Estate is doing?

Here’s some interesting facts from presentation I did for the NA Realty Assn looking at the first 4 mos of this year.

On the Plus Side For New Albany Residential Sales

  • Total sales volume for New Albany is up 45% over LY vs the total Columbus Board up 26% vs LY.
  •  Total unit sales are up over last year.
  •  Average sales price jumped from $386.0 to $418.0
  • Average $ / sq ft (Value) dropped less than the previous 4 years

But, On the other hand

  • Total Sales Volume is still behind 2007 and 2008 levels.
  • Total unit sales are still bel0w 2007 levels
  • Average sales price is still below the 2006 high of $444.0
  • Average $ / sq ft (value) has dropped 17 % since 2006

So What does it all Mean?

Simply stated, it means that New Albany Home Sales the first four months of this year were substantially improved over the same period of 2009.  That said, LY was a really tough year, so I would expect to see improvement.  

We certainly have seen an increase in volume in all areas and a substantial slowing in the erosion of value as expressed by $ / sq ft.  One of the big unknowns is how much forward business the tax incentive pulled out of the Summer selling season.  

The Forcast Then?

Continued slow improvement.  However with a fragile economy, continued inventory surplus and skittish Buyers, it’s likely to continue to be a bumpy ride.

I’ll keep you posted (or blogged). 

New Albany Neighborhoods