A severe winter and a shortage of houses on the market contributed to a sharp drop in home sales
during January, industry experts say.

In central Ohio, 1,337 homes changed hands, 8 percent fewer than last January. Throughout Ohio,
sales dropped 5 percent from a year ago, ending 30 months of consecutive sales gains.

Nationally, sales also declined 5 percent, to a seasonally adjusted annual rate of 4.62 million
units, the lowest level in 18 months.

“Looks like the historically adverse winter-weather conditions have placed a temporary freeze on
home sales,” said Milt Lustnauer, president of the Columbus Realtors trade association.

The weather alone can’t explain the sales decline, however.

January’s sales reflect contracts signed in November and December, before some of the worst
weather arrived. In addition, sales declines were steepest in the West, which was not hit hard by
winter, and smallest in the Northeast, which got clobbered.

Sales also were dampened by a lack of homes to buy. In central Ohio, fewer than 9,000 homes are
for sale, the lowest level in 14 years.

Finally, rising interest rates may have killed some deals. The average 30-year fixed mortgage
rate is 4.33 percent, 1 percentage point higher than a year ago.

Homes that did sell sold for more money, suggesting that demand remains high.

The median sales price of a central Ohio home rose almost 7 percent to $128,000 from last
January. Statewide, prices rose 5.6 percent, and nationally, prices are up almost 11 percent from a
year ago.

Some of the run-up in prices is being driven by investment firms buying homes. One out of three
homes in January was purchased in cash, which is common among investors.

January’s data suggest that sales may remain weak for a few months.

The number of contracts signed for homes during the month was 51 percent lower than last
January.

In addition, the number of homes listed for sale dropped almost 17 percent from a year ago.

For some, January’s figures illustrate that the housing rebound is over, replaced by a normal
up-and-down market.

“Our January sales results are reflective of a more balanced, stable marketplace — one that will
experience traditional ebbs and flows in activity levels throughout the year,” said Chris Hall,
president of the Ohio Association of Realtors.

jweiker@dispatch.com