Columbus-area home sales declined in June from a year ago, as a shortage of homes and rising
prices kept buyers at bay.

During the month, 2,856 homes changed hands, down 3 percent from the previous June for the sixth
consecutive month of year-over-year declines.

The persistent combination of low sales, high prices and a lack of homes on the market has led
some experts to wonder whether this is real estate’s new normal.

“I don’t know if it’s going to change or not,” said Clintonville agent Sue Lusk-Gleich, who is
with Keller Williams Capital Partners. “That’s the $64,000 question.”

The shortage of homes for sale showed no signs of changing during June. Even though 3,900
central Ohioans listed their homes during the month, the number was down slightly from May and from
a year ago.

At the end of June, 9,247 homes were listed for sale in central Ohio, about a four-month supply
at the current sales pace, well below the six-month supply considered balanced between buyers and
sellers.

Experts suggest several reasons why homeowners are staying put. About 20 percent of central Ohio
homeowners still owe more than their home is worth, making it difficult to sell. In addition, some
are worried about not finding another home.

Finally, even though interest rates remain low, some sellers are
reluctant to move to a higher rate than their current one.

“Many potential home sellers continue to sit on the sidelines due to either a fear of their home
selling too soon and not finding suitable housing or of getting an interest rate somewhat higher
than what they currently have,” said Keller Williams Capital Partners agent Joe Jackson.

The shortage of available homes is benefitting sellers, who have enjoyed two years of rising
prices. The median sales price of a central Ohio home in June was $165,500, nearly 4 percent above
a year ago. So far this year, prices are up 6.3 percent above 2013.

The average central Ohio home sold in an unusually quick 60 days during June, as buyers
scrambled for the choicest offerings.

“Inventory is down, which is causing prices to rise and people bidding against one another to
get the good homes,” Lusk-Gleich said.

Statewide, sales inched up over a year ago, helped by big gains in smaller markets such as
Mansfield, Cambridge, Marion and Zanesville.

Nationally, home sales rose from May. It was the third straight month of month-to-month
increases but remained below year-ago levels. Sales reached an annual pace of 5.04 million homes in
June, the first time sales topped 5 million since October.

The median price of a U.S. home sold in June was $223,300, up 4.3 percent from a year ago.

Lawrence Yun, the chief economist with the National Association of Realtors, said housing is
moving in the right direction but homebuilders need to more aggressively build to offset the lack
of inventory.

“New-home construction needs to rise by at least 50 percent for a complete return to a balanced
market because supply shortages — particularly in the West — are still putting upward pressure on
prices,” Yun said.

jweiker@dispatch.com