Market Landscape

The Columbus housing market is experiencing a shift as increased inventory provides buyers with more choices. Despite these changes, pending new home sales have recently decreased, currently reflecting a modest year-over-year gain of just 0.7%.

Home-price appreciation has also slowed, dropping from around 6% during the winter months to just 2.9%. This downward trend indicates that the surge in inventory is starting to temper the competitive landscape.

Buyer Conditions and Market Index

According to local Redfin agent Brad Shields, the inventory levels in Columbus are the highest they have been since before the COVID-19 pandemic, allowing buyers to be more selective in their home purchases. Shields noted, “I think that’s why buyers are being a little more picky on what they’re purchasing now. Because the market is less competitive and inventory has grown, there’s not quite as much fear of missing out.”

The Market Action Index (MAI) indicates a shift towards a more balanced market. In May 2022, the MAI in Columbus reached an exceptionally high level of 91, signaling a strong sellers market. However, the index has since dropped to 49, still indicating a sellers’ market but presenting an improved situation for buyers.

Impact of Tariffs on the Housing Sector

The housing market is also navigating external economic factors, particularly the impact of tariffs imposed during the Trump Administration. Significant tariffs remain in effect for materials affecting homebuilding, including a hefty 145% tariff on materials sourced from China, which accounts for 27% of the construction materials used in residential construction.

Additionally, there are blanket tariffs of 10% on all imports and a 25% tariff specifically on steel and aluminum. According to a study by John Burns Real Estate Consulting (JBREC), these tariffs could increase the cost of constructing a single home by approximately $12,800.

Economic experts express concern that rising costs from tariffs may dampen housing demand as households adjust their financial priorities. Nonetheless, agent Brad Shields suggests that the immediate impact has been minimal, stating, “I don’t think it’s been overly significant at this point. I do think buyers and sellers both are a little more on alert, so to speak.”