Ohio Real Estate Trends Reveal Obstacles, Opportunities
In addition to a relatively low cost of living, Ohio is centrally located, home to many colleges including Case Western Reserve University, Kenyon College, Oberlin College, and Ohio State University, and has nationally-ranked healthcare at the Cleveland Clinic, Wexner Medical Center, and more. Ohio home values have increased 15.2% year over year since June of 2020, and show no signs of slowing down anytime soon.
High Demand, Low Supply
In April of 2021, homes in the capital city of Columbus were being snatched up faster than in any other major city in the country, with 74% of homes listed moving from “for sale” to “pending” within less than a week, and less than 12% of homes taking a month or more to sell. In June, 3,644 homes in the central Ohio area were sold within the month at a median price of $275,00; an all-time record.
“Over the last year, we’ve averaged about 3,000 new listings each month,” Michael Jones, 2021 President of Columbus Realtors, told NBC4. “But last month, we had 4,359 homes added to the market for sale. This was quite the boon for motivated buyers who acted quickly to put them in contract!” As a result, developers in the area are struggling to keep up with the demand, breaking ground for new homes as soon as they can meet zoning requirements.
Other Ohio cities are experiencing the surge as well: the Cincinnati real estate market is hotter than ever, with home values jumping 18.5% year over year in June and houses only lasting on the market an average of nine days, with a median sale price of $240,000.
And nearby Dayton, where the median list price of a single-family home is $125,000, has also been named a top housing market and a hotspot for tech talent growth. Home values here have increased by 23.1% in the past year alone, and 86.3% in the last five years. Cleveland real estate is also booming, with home values rising 25.7% year over year since last May and 91% since 2016. Here, the median list price is currently $109,000.
“Despite the persistent low inventory levels of homes being marketed for sale throughout Ohio, consumers are continuing to push the housing marketplace forward with brisk sales activity and rising prices as they take advantage of historic low interest rates,” Seth Task, President of Ohio Realtors, told Spectrum News 1.
While housing inventory has finally been on the rise nationwide in recent months, and Ohio is following that trajectory as well, it’s a slow-moving trend, with only an 8.8% increase from May to June statewide.
The Toledo real estate market is one of the few exceptions in the state, with a median list price of $110,000 for a single-family home, an average of 76 days on the market, and a larger supply of homes than demand for them.
More Challenges Arise
Throwing another wrench into the Ohio housing market is the fact that corporate buyers like hedge funds have been buying up many properties in the state for significantly over asking price. While this is a national issue — it’s estimated that one of these entities, called American Homes for Rent, owns about 52,000 properties in 22 states — and the relative affordability of Ohio homes is causing others to flock to the state. And unlike first-time buyers, they often have much more liquid cash to work with.
For these reasons and more, many Ohio residents are likely experiencing the house-rich, cash-poor phenomenon.
“In Ohio, it looks like one in nine [households] are spending most of their income on their housing cost,” Toni Morgan, Assistant Director of Housing for YWCA in Dayton, told WDTN.
If you’re a current homeowner in the state, it might be the perfect time to make the most of your Ohio home equity. The average homeowner in Ohio gained $22,000 in equity in the first quarter of 2021 alone. Accessing that equity in cash can give homeowners the buying power they need to upgrade, renovate, or purchase a second home — and they can do so without a loan, added debt, or monthly payments.
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