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January 20th, 2019 by Marco Santarelli
Introduction To Columbus Ohio Real Estate Market
The Columbus Ohio real estate market remains hot for investors and buyers alike in 2019. The real estate statistics in Columbus show us that while the construction is increasing, inventory is still scarce because of demand in those cities. This is causing the price increase of Columbus real estate. Columbus, Ohio is the 14th largest city in the U.S. It is home to almost nine hundred thousand people. Forbes reported in 2018 that Columbus is a rare Midwest success story, a “Rust Belt” city that has truly transformed itself and has begun growing again. It is the only large northern city to grow by more than 10% between 2010 and 2018. Compare this to many northern cities continuing to hemorrhage people, whether they are moving to the suburbs or the south.
This makes the Columbus housing market much healthier than Cleveland, Detroit and smaller Ohio cities from which it has drawn population. The Columbus Ohio real estate market is actually bigger than many think. Take the suburbs into account, and the Columbus housing market encompasses around two million people. It is the second largest metro area in the state. We shall give you some Columbus Ohio real estate statistics, such as median home prices and available inventory, which will help you understand the way the local market moves in this region.
Columbus Ohio Real Estate Market Forecast 2019
We get to find that on Zillow, the median home value in Columbus is $150,100. Columbus home values have gone up 7.1% over the past year and the Columbus Ohio real estate market prediction is they will rise 6.8% in 2019. The median list price per square foot in Columbus is $120, which is lower than the Columbus Metro average of $130. The median price of homes currently listed in Columbus is $169,900 while the median price of homes that sold is $155,300. The median rent price in Columbus is $1,300, which is lower than the Columbus Metro median of $1,350.
Columbus Ohio Real Estate Market Trends 2018
Columbus Ohio real estate market trends indicate an increase of $4,800 (3%) in median home sales and and a -8% drop in median rent per month over the past year. The average price per square foot for this same period rose to $120, up from $117. Trulia has 1,214 resale and new homes in Columbus lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median rent per month for apartments in Columbus for Dec 9 to Jan 9 was $1,100. Average price per square foot for Columbus was $120, an increase of 3% compared to the same period last year. The median sales price for homes in Columbus for Oct 10 to Jan 9 was $150,000 based on 1,880 home sales.
As per the real estate company named Redfin, the Columbus housing market is very competitive. Homes in Columbus receive 2 offers on average and sell in around 46 days. The average sale price of a home in Columbus was $170K last month, up 12.5% since last year. The average sale price per square foot in Columbus is $109, up 8.5% since last year. Homes for sale in Columbus typically receive 2 offers. Homes sell for about 2% below list price and go pending in around 46 days. Hot Homes can sell for about list price and go pending in around 32 days.
Columbus Housing Market Summary
There are 2,134 homes for sale, ranging from $1 to $4.7M on Realtor.com. Additionally, there are 1,212 rentals, with a range of – to $12K per month. There are 188 neighborhoods in Columbus. Upper Arlington has a median listing price of $379.9K, making it the most expensive neighborhood. Highland West is the most affordable neighborhood, with a median listing price of $45K.There are 260 schools in Columbus, OH. There are 128 elementary schools, 37 middle schools, 32 high schools and 63 private & charter schools.
In December 2018 the housing market in Columbus, OH was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. Homes for sale in Columbus, OH sold for 7.97% above asking price on average in December 2018. Buyer’s markets are generally more advantageous for buyers rather than sellers. Homes in Columbus sell faster than average compared to other cities in Franklin County. It takes an average of 45 days on market for a home to sell in Columbus. On average, homes in this cities sell for 8% above asking price.
On Movoto.com, the median list price in Columbus is $172,450. The median list price in Columbus went up 2% from undefined to January. Columbus’s home resale inventories is 1,060, which decreased 4 percent since undefined 2019. The median list price per square foot in Columbus is $115. undefined 2019 was $115. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in January.
According to Neigborhoodscout.com, single-family detached homes are the single most common housing type in Columbus, accounting for 46.43% of the city’s housing units. Other types of housing that are prevalent in Columbus include large apartment complexes or high rise apartments (29.76%), duplexes, homes converted to apartments or other small apartment buildings (13.20%), and a few row houses and other attached homes (9.78%). People in Columbus primarily live in small (one, two or no bedroom) single-family detached homes. Columbus has a mixture of owner-occupied and renter-occupied housing.
Columbus Foreclosures And Bank Owned Properties
Foreclosures will be a factor impacting home values in the next several years. In Columbus 4.5 homes are foreclosed (per 10,000). This is greater than the Columbus Metro value of 2.8 and also greater than the national value of 1.2. Mortgage delinquency is the first step in the foreclosure process. This is when a homeowner fails to make a mortgage payment. The percent of delinquent mortgages in Columbus is 1.2%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Columbus homeowners underwater on their mortgage is 8.0%, which is higher than Columbus Metro at 6.2%.
On RealtyTrac, there are currently 902 properties in Columbus, OH that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,242. In December, the number of properties that received a foreclosure filing in Columbus, OH was 39% lower than the previous month and 18% lower than the same time last year. Home sales for November 2018 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.
Columbus Ohio Home Prices And Appreciation Rates
Appreciation rates for homes in Columbus have been tracking above average for the last ten years, according to NeighborhoodScout’s data. The cumulative appreciation rate over the ten years has been 27.34%, which ranks in the top 30% nationwide. This equates to an annual average Columbus house appreciation rate of 2.45%. Their data shows that during the latest twelve months, Columbus’s appreciation rate, at 6.67%, has been at or slightly above the national average. Zillow forecasts a 6.8 percent growth in home value growth in Columbus, OH in 2019, which is faster than the national average of 6.6 percent.
In the latest quarter, Columbus’s appreciation rate has been 3.63%, which annualizes to a rate of 15.32%. Importantly, this makes Columbus one of the highest appreciating communities in the nation for the latest quarter, and may signal the city’s near-future real estate investment strength. Relative to Ohio, our data show that Columbus’s latest annual appreciation rate is higher than 80% of the other cities and towns in Ohio.
10 Highest Appreciating Columbus Neighborhoods Since 2000: By Neigborhoodscout.com
10 Reasons To Buy Columbus Ohio Investment Properties
Are you thinking of investing in the Columbus turnkey properties? If you’re looking to buy Columbus investment properties, it makes sense to do so when inventory levels are high. The surplus of available opportunities can lead to softer negotiations with sellers. Columbus has a lower cost of living than the national average. Homes downtown tend to sell at higher prices than those on the city’s south side. Let’s look at the top 10 reasons to invest in the Columbus Ohio real estate market.
1. Real Estate Is Appreciating for Many Reasons
A city that’s losing people is typically going to see property values decline, though desirable neighborhoods may see steady or slight increases in valuation. The Columbus Ohio housing market is seeing steady growth due to slow population growth. Between 2013 and 2018, property values have increased. In 2017, they increased a whopping 9.2%.
Housing prices in the Columbus Ohio real estate market are expected to increase another 7% in 2019. This is partially due to the demand for older, renovated homes in established, walkable neighborhoods. The limited supply of family-friendly homes in these areas is driving up their prices.
2. Real Estate Investor Friendly Policies Make It a Great Opportunity
One interesting factor driving property valuations in the Columbus Ohio real estate market is city tax abatements in downtown neighborhoods. The city is encouraging people to buy up properties and renovate them, whether to rent out or live in themselves. Another point in favor of Columbus is that they didn’t crack down on private rentals like AirBnB. For example, they decided in 2018 not to limit the number of days people could rent their homes out on AirBnB and similar sites.
3. It is Landlord Friendly
Ohio is rather landlord friendly, in the same category as Idaho and North Carolina. That makes it much more landlord friendly than neighboring Midwestern states and far better than Pennsylvania. There are no laws regarding pets, payment grace periods or re-keying. Interest owed on deposits is modest. Rental agreements are recommended but not required for short leases. There is no statutory limit on late fees but they must be “reasonable”.
4. The Economy Is Healthy
We’ve already mentioned that Columbus, Ohio is considered a “Rust Belt” city that’s unique for rebound. It enjoys unemployment rates around 4%, but this is phenomenal compared to the surrounding area. The US saw incomes grow 22% between 2010 and 2016. Columbus metro area incomes grew roughly 25%. The city’s economy is healthy enough to retain many young people and attract some coming here to work, but it isn’t so hot that the bubble may burst. Most of the Columbus housing market growth has been younger people moving there from Ohio. This includes but isn’t limited to those who came for school but decided to stay.
5. The Sizable Student Market Is a Boon to Investors
Columbus, Ohio is the state capital. This means there are several universities in the city. Franklin University hosts nearly five thousand students. Capital University has about three thousand students. Ohio Dominican University is home to nearly two thousand students. There are nearly 40 colleges within fifty miles of Columbus. And the sheer variety of colleges in the area means that investors can rent to the large population of students in the Columbus Ohio real estate market without worrying about their property values rising and falling based on the popularity of a flagship school.
6. The Demographic Momentum Will Keep the Market Strong
Between kids attracted to the Columbus Ohio housing market for school and work and choosing to stay to start their own families, the Columbus market enjoys a median resident age of 32.3. This is seven years less than the median age for the state of Ohio. We can expect the next generation growing up here to stay, as well, fueling demand for the Columbus housing market.
7. The Tax Climate Is Balmy
Ohio’s effective property tax rate is 1.56%. That’s higher than the national average. However, Ohio is better than its peers for real estate owners, since its property tax rates are lower than those in several surrounding Midwestern states. Property tax rates do vary between counties, so you may pay lower property taxes for investment property in the suburbs as in downtown Columbus.
8. The Low Cost of Living Attracts and Keeps Residents
Columbus, Ohio has to compete with many other surrounding cities in the Midwest. However, one point in its favor is the lower cost of living. That attracts residents who earn just as much here as in Chicago but don’t have to pay as much for things. The annual salary is a little less than the national average, but rents and housing are even lower – and much lower than hotter markets like Chicago.
9. Housing Prices Are a Bargain
Average housing costs in the Columbus Ohio real estate market are $171,000 relative to the national average of $222,000, according to US News and World Report. However, the large rental market means the median rent is around $850 a month. This yields a decent return on investment for real estate owners.
10. Redevelopment Is Ongoing and Everywhere
There are at least ten major redevelopment projects planned around Columbus, Ohio. These projects total to an estimated billion dollars. Each of these redevelopment projects will increase demand for homes in the area. In neighborhoods with new luxury condos, shopping and employers, everyone’s property will be worth more.
This allows real estate investors to invest in the Columbus Ohio real estate market in one or multiple locations, depending on their budgets and preferences. Nor do you have to worry about the one multi-family housing unit you bought collapsing in value because the mega-project in downtown was delayed or fell through for lack of funding.
Columbus OH Real Estate Investment: Summary
If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Columbus, OH. The Columbus housing market is a bright spot in a declining region. It mixes smart redevelopment, quality of life, and growth to create a stable, slow-growing market that will be thriving well into the foreseeable future.
There are many neighborhoods to consider for buying properties in Columbus. Properties in Worthington and downtown Columbus have higher than average median home prices, and their relatively low crime rates add additional appeal. Places like Victorian Village, where home prices remain higher than many other places in the city, support a strong local market, and they can signify a lower level of risk.
Apart from the Columbus Ohio housing market, you can also invest in Charleston, SC. The Charleston housing market is certainly benefiting from a local economy that has gained worldwide attention. The Charleston housing market contains multiple, sizable renting populations aside from a growing workforce that cannot afford to buy local single family homes.
The strong job market and relatively limited space is driving up rents and home values. According to report published on Charlestonrealestate.com, the feeling is that the Charleston real estate market will have an adequate demand for housing in 2019. However, increased inventory and lower buying power will result in lower sale prices and signify a buyer’s market. A buyer’s market indicates that buyers have greater control over the price point.
Another market that we suggest is the housing market in Colorado Springs, CO. The Colorado Springs housing market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come. Forget the Mile High City and invest in the Colorado Springs real estate market. The Colorado Springs real estate market is notable for how affordable it is compared to many other cities in the Rockies.
The median home price is around $260,000, and the median rent is roughly a thousand a month. That is about 10% higher than the national average, but the average price of a home in Denver passed half a million dollars in 2018. In short, you can buy two homes in Colorado Springs for the price of one in Denver. The double digit price gains in Denver will push people to Colorado Springs, as well, since relatively few earn the $90,000 a year income needed to afford the average Denver home.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing. We can help you succeed by minimizing risk and maximizing profitability of your real estate investments.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Low cost of living
Real estate friendly policies
Overview / demographics
Property value increases
Market Trends And Forecast https://www.zillow.com/Columbus-oh/home-values https://www.realtytrac.com/statsandtrends/foreclosuretrends/oh/franklin-county/columbus https://www.neighborhoodscout.com/oh/columbus/real-estate https://www.movoto.com/columbus-oh/market-trends https://www.redfin.com/city/4664/OH/Columbus/housing-market https://www.trulia.com/real_estate/Columbus-Ohio/market-trends https://www.realtor.com/local/Columbus_OH https://www.movoto.com/guide/columbus-oh/columbus-real-estate-market-trends-and-statistics
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