COLUMBUS, Ohio — Those looking for a home got some tough news this week as interest rates for a 30-year fixed rate mortgage jumped from 6.87% to 7.06%, making it more expensive to borrow money or the idea of the American dream of owning a home.
“It’s part of the American dream and it’s part of my dream,” said Tom Perry who is hoping to leave his one bedroom apartment for a two bedroom condo.
Perry, like most young first time buyers are getting a lesson in home ownership in a market where the prices in the Columbus area continue to climb and competition for homes is fierce.
“It's a tough market interest rates are high it's been a tough search. I have a nice down payment but not enough to get the 20%,” he says.
The Central Ohio housing market is short on supply and high on demand and why driving a majority of housing prices, according to President of Columbus Realtors Scott Hrabck.
He says there are 2,700 homes on multiple listing service in Columbus.
“We need four, five times that to meet our demand so until the demand changes it is going to be a challenge for those who are looking,” he says.
Based on numbers from January, Columbus Realtors says the area within the Columbus City Schools remains a hot housing market. Sales accounted for 950 of the 1,558 closed sales in January.
Grove City, in the South-Western School District also saw a lot of sales. Nearly 90 homes in the first month at a median sales price of $269,150.
One of the hottest, markets is in Marysville. The city saw it’s median sales price jump 15% year over year to $402,450.
Meanwhile people like Perry are trying to stick to a budget.
“I'm comfortable with $170,000 to $180,000,” he says
He, like other first time buyers, are not only facing a competitive housing market but also a lack of incentives he says from lenders.
“They offer down payment assistant for first time home buyers but you can't put a larger down payment for that which is kind of frustrating to me,” he says.
Perry says he remains hopeful that his patience to find the right home will pay off and he can leave his one bedroom apartment when he says is also increasing in price.
“It's gone up $100 dollars a month every year,” he says.
You can read more about the Central Ohio Housing Market here.