The Central Ohio housing market continues to ramp up as we enter Spring. One of the effects of being in an extremely competitive housing market is the rise in all-cash buyers that we are seeing. According to the Columbus REALTORS®, in 2020 just 16.1% of buyers were cash buyers. In 2021 that number rose to 21%. As we enter 2022 the number of all-cash buyers jumped to 24.3%!
The number of buyers choosing conventional financing was at 65% in 2020 but dropped to 62% last year. The first 2 months of 2022 had that number drop again, to 59%.
Offering cash has been a way for buyers to compete in today’s housing market. Another way for buyers to be competitive while still financing a home is to use any cash reserves to cover the appraisal gap if it occurs. This means that buyers can offer to pay cash for the difference between what the home appraised for and the amount that the buyer agreed to pay for the home.
In February home sale prices were up 11%, many homes selling for more than list price and taking an average of 24 days to go into contract. The month ended with a 3.3% increase in the number of homes on the market (1,745) over last year. We look forward to a busy spring and summer in real estate!