The warmer than average weather didn’t just apply to the thermostat in February, as the Delaware, Ohio real estate market continued its blistering pace.
There were a total of 44 residential properties sold in February 2023 according to the Central Ohio Multiple Listing Service. When you consider there are only 34 houses active for sale in the entire Delaware City School District – that’s a pretty amazing feat.
The Delaware Home Sold Numbers Don’t Lie
The Delaware, Ohio, sale prices continue their extreme push forward hitting $180.15 per square foot in February. That’s an amazing 11% increase over 2022 and a whopping 49% higher than five years ago. But Toby, I’m sure there were less sales … actually 44 was the highest in the past five years. The average over the last five years had been 39.5 units.
The asking prices have also continued to just push through the moon. In 2023, the average home that sold was listed at $181.46 and sold in 32 days.
Three Signs Delaware Real Estate Market is Still Flying High
It is
- List Prices Looking to Slow Down. The average list price for a home that is pending or in contract in the Delaware market is about $185 per square foot. Now not all of them will close and there will be a few last second deals that aren’t showing up yet that will close. But that would be only about a 2% increase from February’s $181.46. A slower growing market is great for the market as a whole because it allows people to budget and plan for their future utilizing your homes value. The only time sellers love these exploding prices is the day the list and sell their property, the rest of the time it is increasing their taxes, making insurance rates higher, adding to the uncertantity is of course inflation rates.
- Central Ohio is Booming. Intel is coming, Intel is coming. Honda is coming, Honda is coming. Another big name will be making a splash this summer … but more on that later. This all means that Central Ohio has become the darling of these big companies. And that is going to insulate Central Ohio from most of the effects of the recession will have on other parts of the country.
- Not As Much Cash in the Market. In February 18% of the homes were purchased with cash which is pretty much on par for the Delaware area over the past several years. Nationally that number is normally closer to 25% and has been in the 33% range since 2021.
Three Weakness Signs in the Delaware Real Estate Market
There are three things that I am focusing on when working with my buyers and sellers this spring.
- Supply. We have 34 houses on the market in Delaware, Ohio, today. The average list price is $192.76 and has been on the market for 99 days. These houses are currently “on” the market but not “in” the market – as in the market has said it will not pay that list price for these homes. Do we have another 50 homes coming on the market to sell? With the product that is in the pipeline – contingent or pending – there should be about 40 homes to sell in March. It is the traditional “hot” season of April and May that I’m watching.
- Interest Rates. Stop dreaming. Interest rates are not coming down in the next three years. It isn’t coincidental that two major players in the mortgage world — Rocket Mortgage and Third Federal Savings & Loan – are offering free refinances if the rate goes down in the next three years. These two providers serve completely different clients and do a significant number of loans … this is a very expensive guarantee they are providing. Banks are in trouble – just look at Silicon Valley Bank – and they have to recoup the losses somehow. Interest rates could be where they do it.
- Slowing Sale Prices. Without the concern about interest rates, this would be good news. The market is beginning to stabalize and as the discount begins to return to real estate. I consider discount to be the percent drop from sales to list price. Historically in Central Ohio this number has been in the 2-3% range. However in 2021 and 2022 it was actually negative with buyers paying 1-2% over list price for the entire month. In February 2023, that value was actually nearly ¾% below list price.
With the spring selling season on the horizon, one thing is it is going to be a wild ride.
Toby Boyce is a Delaware, Ohio Real Estate Agent specializing in both residential and commercial real estate in Delaware County Ohio. For more information about real estate in Delaware, Ohio you can visit Toby’s website at www.TobyBoyce.com