As the real estate market “adjusts” from the strongest seller market ever to the harshest in about forty years, where do homeowners in the Locust Curve subdivision in Delaware, Ohio, stand?
Well, that’s a good question, and depending on who you ask you’ll get a different response. But, all of the answers are going to revolve around it not being what it was just a year ago. We haven’t seen sales slow down this much in the nation, state, county, city, or Locust Curve in the past decade. With about 325 units in Locust Curve — combining the Highlands and Woods — the yearly number of units sold has fallen to 5.5% over the past two years. Which is almost half the largest 9.8% turnover during the past decade when 32 homes sold in 2013.
Is It Still a Seller’s Market?
Why, yes; yes, it is. But, not in the same way that it was in 2021-2022. It is more a seller market due to the limited amount of inventory than an overabundance of buyers who are seeking out homes. There are currently only 75 houses active or coming soon on the market in Delaware, Ohio. When you consider that in the past year, Delaware City has averaged 58 units sold per month which equals only about six weeks of inventory. If we include properties under contract, that increases the units for sale to 136 or about 2.3 months of inventory when considering total homes on the market.
What does that mean to you as a potential home buyer and/or seller in Locust Curve development? At the height of the seller’s market, the average days-on-market got down to a minuscule three days. This is about the shortest time you’ll see as the house would go active on Friday, multiple offers open until Sunday night, and then the seller makes a decision going into contract on Monday. Today, that average is up to eight days. Still, an amazing quick number if people weren’t used to seeing things in contract in hours.
What Has This Done to Pricing in Locust Curve?
Basically, it has allowed for the pricing in the Locust Curve subdivision to nearly double from where it was ten years ago. In 2014, homes in Locust Curve were selling for about $100 per square foot, and in 2023, that number eclipsed $200 per square foot.
The average size of a home in Locust Curve sold in 2023 ranges from 1,200 – 2,000 taxable square feet with a price range from $303,000 – $380,000 with the average price being $329,831. Looking at the chart, you’ll notice that every year has shown an increase in value over the past one. However, the growth from any year to the next was the smallest from 2022 to 2023. This has been a sign of a lot of things in the economy.
What Should We Expect in 2024?
“Interest rates continue to be the biggest challenge to pricing moving forward into 2024. We’ve already seen buying power reduced with the increase in rates and any increase beyond 2023 levels will have catestrophic effects on the real estate market.”Toby E. Boyce, Parker Realty Associates
Well, that’s a damn good question. And we’ll cover it in next month’s Locust Curve marketing report. But for now, let’s highlight the top three real estate concerns to face buyers and sellers.
- Interest Rates
- Economic Recession / Retraction
All three of these are very intertwined but really come down to consumer confidence in the market remaining strong. If we lose that consumer confidence in the market we’ll see major changes in the 2024 market.