COLUMBUS, Ohio (WCMH) — One of the most competitive housing markets ever in central Ohio led to an increase in cash buyers, a trend continuing into 2022, according to Columbus Realtors.
The March report from the organization which represents 9,400 real estate agents, said that in 2021, buyers who paid cash for a home represented 21 percent of the market.
In the first two months of 2022, this trend continued with all-cash buyers making up 24.3 percent of all transactions.
The initial 2022 figures are up 8.2 percent from 2020 when the report found 16.1 percent of buyers paid all cash for a home.
Conventional financing dropped to 59 percent during the first two months of 2022, the Columbus Realtors report said. Cash made up 24 percent, FHA (Federal Housing Administration) 10 percent, and VA (Veterans Affairs) 5 percent.
Additionally, some people may use a part-cash payment to cover the gap between the appraised price and what they decide to bid on the home — known as the appraisal gap.
“Homeowners today have, on average, more equity in their homes than ever before, which can translate to supplemental cash,” said Sue Van Woerkom, 2022 president of Columbus Realtors. “And the stock market boom over the last couple of years has enhanced many investors’ portfolios, providing another option for additional cash.”
Housing activity has started to ramp up again following the cold winter weather. There is still an upward trend in home prices, the report notes.
February home sale prices were up 11 percent. Most homes have been selling for more than the listed price, averaging 24 days to go into contract, the report said.