OHIO - The Ohio Real Estate market is experiencing an uptrend. Home prices in the state are expected to rise 10.7% YOY this year, and homes in the Cleveland area are expected to climb 18.8% YOY this year. However, inventory shortages in some neighborhoods are projected to ease in 2023.
Home Prices In Columbus Have Increased 11.6% Yoy
Due to a healthy economy and low housing inventory, Columbus, Ohio, is a real estate investor's paradise. The median price of a single-family home is $215,000, which is about $17,500 higher than the year-ago figure.
While Columbus home prices are still relatively low, they are expected to increase over the next twenty to twenty-five years. The Columbus metro area is expected to grow by over 50% in the next 20 years. In the latest quarter, home prices in Columbus had increased by 0.45% YOY. While this increase may not seem like much, it is enough to change the long-term value of a real estate investment.
In Columbus, the housing market was booming in 2021, as low inventory and strong buyer demand pushed home prices up. According to the Columbus REALTORS(r) Multiple Listing Service, there were 36,489 homes sold in the Central Ohio housing market in 2021.
Home Values In Cleveland Have Increased 18.8% Yoy
The Cleveland, real estate market has seen steady appreciation in recent years. According to the latest Akron Cleveland Association of Realtors report, the average home value is $236,873. The current inventory of available homes is 1.3 months, down 7.9% from the same period a year ago. As a result, rental property is in high demand. Over half of the housing units in Cleveland are occupied by renters. This trend has created a huge demand for single-family rental properties. Rental property can offer both cash flow and appreciation over the long term.
Downtown Cleveland has seen rapid growth over the past several years. $19 billion in development has been completed or planned downtown since 2010. The city recently redeveloped a ten-acre green space. Additionally, there are many jobs in the Cleveland metropolitan area. Many of them pay well, but there are not enough qualified candidates to fill them.
Home Values In Columbus Are Forecast To Increase Another 10.7% Yoy In The Next 12 Months
Home values in Columbus are projected to increase another 10.7% YOY over the next 12 months, thanks to a robust housing market and low inventory. In October, one in four homes sold for cash, which helped push prices up even more. The median sales price was $250,000, and the average price was $290,847. In the Central Ohio region, selling a home took an average of 22 days. The monthly supply of inventory fell to 0.6 months.
With a tight housing supply and a robust economy, home values in Columbus are expected to rise another 10.7% YOY over the next 12 months. This continues the trend of home prices rising faster than average across the region. This trend has made Columbus a real estate investor's paradise. Columbus is a buyer's market with just one month's available housing supply.
The median age in Columbus is a bit lower than in the state. That means Columbus has a competitive edge over many surrounding Midwest cities. Rents and housing prices are lower than in other regional markets.
Inventory Shortages Could Ease In 2023
A recent survey conducted by Zillow suggests that inventories could return to their pre-crisis levels in 2023. Even though the number of homes for sale remains low, many respondents expressed optimism that the supply of homes would rebound to pre-crisis levels. The survey also found that prices in 2023 are likely to remain high, but the supply shortage could ease. If inventory shortages are relieved in 2023, the market may resume a normal pace by 2025. Nevertheless, rising prices will dampen buyer demand and create affordability issues.
Higher prices and higher mortgage rates may put buyers' monthly payments beyond their budgets. In addition, inventory shortages in new developments may ease in 2023, allowing more buyers to find their dream homes. While inventory shortages may be an ongoing issue, a few simple measures can make a big difference. For example, small steps to improve finances and set a budget can significantly affect your purchasing plans. In addition, if you have enough cash to purchase a home, waiting until the inventory levels are higher may make more sense. Mortgage rates will only increase more slowly than in other areas, so a proactive buyer can fast-track his or her purchase in 2023.