We all know that when it comes to residential property in the Greater Columbus area, it’s a “sellers’ market.” Even a recent increase in available properties has done nothing to drive down either sales or the number of multiple offers made on many homes for sale. Obviously, the existing economic conditions and trends have fueled a buying frenzy.
A recent survey of 1,500 Ohio REALTORS participants confirmed the low inventory is driving a proliferation of offers on each available residential property listing. This update on prior reports shows that an even greater percentage of homes on the market are generating multiple bids.
Multiple offers have become the trend. Realtors have had to become very active in encouraging their clients to bid quickly on any home which interests them. As many agents and their prospective homeowner clients have found, “mulling things over” has to occur within hours if not minutes. More and more properties have been reported as “snatched out from under” people who want to buy a home because they didn’t bid quickly (and offer enough.)
The latest report on the number of offers Ohio Realtors received on recent closed residential sales revealed that almost 60% of the homes they were involved in selling received more than one offer.
58% percent of respondents reported receiving multiple offers on their last sale
- 42% received two or three offers
- 9 % received four or five offers
- 7 % received six or more.
This shows that only 42% received a single offer – which was accepted. Given the potential for sellers who wanted a very quick sale/quick closing, bids well over asking price and other situations such as delayed occupancy and/or extended closing dates, it’s safe to say that multiple offers are becoming the norm.
This situation puts even more pressure on homebuyers to shoot from the hip and go big on their offers. Agents will have to work extra hard to insure that clients have pre-approvals AND that those are high enough to make a bid work. In addition, it may make it even higher for buyers to find a home that they like, in the areas where they want to live AND can afford.
Despite some gain in the number of properties available in Greater Columbus, the trend to multiple offers seems likely to continue. That trend will affect what it will cost to buy a home as well as how much potential homebuyers can put on the table in terms of not just required down payments but additional funds to cover shortages between appraisals and home price.
One school of thought is that the current building boom in apartments and condominiums reflects the inability of potential buyers to feel that they can afford single-family detached homes. The thinking is that younger single people or even couples just can’t afford higher down payments or monthly mortgage bills in addition to their student loans and car loans.
Unless there are major economic changes, the trend of multiple offers seems almost certain to continue.