The Federal Reserve is the central banking system of the United States and is overseen by a Board of Governors. The Board has increased interest rates twice so far in 2022, with additional increases likely by year’s end. Purportedly an action to help slow inflation, the raising of interest rates has had a noticeable effect on the real estate market in Ohio and across the country. All of the eight major metropolitan markets in the Buckeye State saw a decline in home traffic in June.
Statistics show a slowdown
Columbus in particular has shown a decrease in house traffic. In March, there were, on average, more than 15 showings of homes for sale. In June, that number dropped to just under nine. This drop in traffic mirrors the national trend recently, where the average is just over 6.3 visitors in June compared to double that amount this past February.
The good news for home sellers in Ohio is that the state draws more home traffic than other markets in the country. In fact, Toledo, Akron and Cleveland were listed among the 25 most active markets nationally. Many home sellers have reduced their asking prices, and experts predict a continued slow market when accounting for the planned hikes in interest rates.
Real estate transactions
The average price of homes in Columbus has risen nearly 14%, but the number of unsold homes in Central Ohio has increased considerably. Whether buying or selling a home, any real estate transaction is complex, and property owners should work with an experienced real estate attorney for assistance. A lawyer can help a client protect his or her rights and interests throughout the transaction while focusing on making the process as efficient as possible.