February 2005 Home Sales

There were 1,436 properties sold in February, a 2.2% increase over 2004. I've been reading a lot about how the housing market is slowing down and interest rates are going up and what a tough year it will be. In the meantime, I'm meeting some new buyers today and they have a good array of homes to chose from in their midtown neighborhood of choice.

The average sales price in Central Ohio was $170,177 last month, up 6.6% from the previous year and the average time on market for a property was 95 days. For the year, home sales are up between 1 and 2 %.

Interest rates are on the rise however, and they've slowly inched up of late to just over 6% in many places. I'm no banker or economist, but I don't see them getting any higher than 6.5% during the course of the next year. The interest rate you pay does make a difference on your monthly mortgage payment and if it is always advisable to speak with a lender sooner rather than later. A very few lenders will even allow you lock in your interest rate in advance of having a home under contract. I have seen up to 90 day locks available. You don't want to get priced out of your perfect home because you didn't explore that avenue but you also shouldn't be looking spend absolutely everything that the bank who pre-approved you said you can afford. Taking the time to find a home that leaves a cushion in your monthly finances and still fulfills all your needs is always my most advisable option. The stress it might lift from your shoulders day-to-day is easily worth it. Leave the perfect house for your 2nd or 3rd home and be fiscally smart with your first one.








February 2005 Home Sales