Booming housing market fuels record property transfer
With the US Federal Reserve expected to raise interest rates perhaps three times this year, will this activity slow?
Keith isn’t so sure. “We thought during the pandemic things would slow down.”
But they didn’t. Over 21,000 properties changed hands in 2020, which was a busy year despite the onslaught of the pandemic. Last year beat 2020 numbers by over 9,000 transactions.
“We were transferring even at the height of the shutdown, we were transferring 70, 80, 100 properties a day, every day,” Keith said. “And it’s just been a struggle. It was a struggle to follow. I was surprised at the level; it hasn’t changed.
All of those buying and selling meant an additional $3 million in transfer fees to the county’s general fund, totaling $8.77 million for the year.
“Let’s face it,” he said. “It’s good news.”
And in January of this year alone, nearly 2,000 property transfers were processed.
“When you hear someone say the local real estate market is hot, you better believe it,” Keith said.
New construction and building permits are also on the rise.
The county ended 2021 with 12,762 residential real estate sales, an increase of more than 40% over 2020 sales and more than 38% higher than the previous record of 9,219 in 2018.
Additionally, there are signs that house prices are trending higher. In 2021, more than 78% of homes sold for more than the current county value on the property. These values were assessed in 2020, during the county’s property reassessment.
Dayton Realtors’ recent year-end report showed that the Dayton area saw the average selling price of a home increase by 11% in 2021. The average selling price in Montgomery County the last year was $190,022, according to the trade organization.
According to Keith, the county has recouped the value it lost during the Great Recession. The total value of properties in the county is nearly $30 billion, its highest total value on record, the auditor’s office said.
The county gained more than $3.5 billion in value during the 2020 property reassessment, largely due to a 15.5% increase in residential property values.
The auditor’s office also states that the department has benefited from a “boom” in new building construction in recent years. The county saw $431 million in new construction in 2020 and another $255 million in 2021.