The balance of power in the Dayton housing market leans slightly towards sellers, given the moderate level of competitiveness and the prevalence of multiple offers in certain instances. However, buyers still have opportunities to negotiate, with homes typically selling below the list price. Factors such as the sale-to-list price ratio and the percentage of homes sold above list price indicate a market where both parties can find favorable terms.
Dayton Housing Market Trends in 2024
How is the Housing Market Doing Currently?
In February 2024, the Dayton housing market displayed promising signs of growth. Home prices surged by 9.5% compared to the previous year, with the median price reaching $115,000. According to Redfin, however, despite this increase, Dayton maintains its affordability, as its median sale price remains 72% lower than the national average. On average, homes linger on the market for 43 days, a slight uptick from 29 days in the previous year. Although the number of homes sold dipped from 134 to 124, indicating a slight slowdown, the market remains active and vibrant.
How Competitive is the Dayton Housing Market?
Dayton's housing market exhibits a moderate level of competitiveness. With homes typically selling in 41 days, it offers a balance between swift transactions and careful consideration. Some properties even experience multiple offers, underscoring the demand in certain segments. On average, homes sell for approximately 4% below the list price, indicating room for negotiation, and go pending in about 41 days. However, in instances where homes are particularly sought after, they can sell for around the list price and go pending in a mere 12 days.
Are There Enough Homes for Sale to Meet Buyer Demand?
Despite the competitive nature of the market, there is a notable trend of homes selling below the list price, suggesting a degree of inventory availability. However, the data reveals 34.3% of homes experiencing price drops, indicating some level of market saturation. Additionally, migration and relocation trends indicate that 56% of Dayton homebuyers have explored opportunities outside of the city, possibly due to factors such as job relocation or seeking better housing options.
What is the Future Market Outlook for Dayton?
The Dayton housing market presents a mixed outlook for the future. While the current data indicates stability and modest growth, factors such as migration trends and economic shifts may influence future dynamics. The slight decrease in the number of homes sold compared to the previous year warrants monitoring, as it could signify a potential trend or seasonal variation. However, with the city's affordability remaining a key attraction, it may continue to draw both local and out-of-state buyers seeking value in the real estate market.
Dayton Housing Market Forecast 2024 and 2025
According to Zillow, the average Dayton home value stands at $138,927, reflecting a 4.5% increase over the past year. Homes in Dayton typically go to pending status in approximately 15 days, indicating brisk market activity.
Inventory Levels and New Listings
As of February 29, 2024, Dayton has 484 homes listed for sale. Additionally, there were 177 new listings added to the market during the same period, suggesting ongoing activity in terms of property availability.
Sale Price Metrics
The median sale price for homes in Dayton, recorded as of January 31, 2024, is $119,133. Comparatively, the median list price as of February 29, 2024, is $136,300. These figures highlight the disparity between listed and actual sale prices, indicating potential negotiation room for buyers and sellers.
Sale-to-List Ratio and Market Dynamics
The median sale to list ratio in Dayton, calculated as of January 31, 2024, is 0.990. This ratio reflects the relationship between the final sale price and the initial list price, providing insights into negotiation dynamics within the market.
Price Negotiation Trends
Examining price negotiation trends, Zillow data indicates that 28.1% of sales in Dayton were conducted over list price, while 51.5% of sales were concluded under list price, as of January 31, 2024. These figures underscore the importance of strategic pricing strategies for both buyers and sellers.
Are Home Prices Dropping in Dayton?
Despite fluctuations in market conditions, data from Zillow indicates that home prices in Dayton have remained relatively stable. The average home value of $138,927 as of February 29, 2024, reflects a modest 4.5% increase over the past year. While individual neighborhoods or property types may experience slight fluctuations, there is no significant evidence to suggest widespread price drops across the market.
Will the Dayton Housing Market Crash?
The possibility of a housing market crash is a concern for both buyers and sellers. However, current indicators in the Dayton market do not suggest an imminent crash. Factors such as steady demand, manageable inventory levels, and consistent pricing trends contribute to market stability. Additionally, government regulations and lending practices aimed at preventing another housing crisis further mitigate the risk of a crash. While market conditions can change, there is no evidence to support the likelihood of a sudden and severe downturn at this time.
Is Now a Good Time to Buy a House in Dayton?
Determining whether now is a good time to buy a house depends on individual circumstances and long-term goals. While Dayton's housing market leans towards sellers, buyers can still find opportunities, especially with strategic planning and negotiation. Factors such as interest rates, personal finances, and housing needs should also be considered. With favorable interest rates and a diverse inventory, some buyers may find it advantageous to enter the market. However, it's essential to conduct thorough research, seek professional guidance, and carefully evaluate options before making a decision.
Is Housing Affordability a Concern in Ohio?
While Dayton's housing market has shown stability, some might wonder if housing prices are dropping across Ohio. It's important to note that real estate conditions can vary significantly from one city to another within the state. Dayton's modest decrease in home values over the past year should be considered in the broader context of Ohio's diverse real estate landscape.
Why Is Real Estate Affordable in Dayton, Ohio?
The affordability of real estate in Dayton can be attributed to several factors, including a lower cost of living compared to many other cities, a diverse housing market, and the city's economic dynamics. Dayton offers a range of housing options at various price points, making it an attractive destination for both first-time homebuyers and investors.
Should Buy Investment Properties In Dayton, Ohio?
Investors looking for opportunities in the real estate market often seek cities that offer growth potential, affordability, and a favorable economic climate. Dayton, Ohio, has been gaining attention as a promising destination for real estate investment. Here are some compelling reasons why Dayton's real estate market may be a smart choice for investors in 2023 and 2024:
1. Affordability
One of the most significant advantages of investing in Dayton is its affordability. Compared to many major metropolitan areas, Dayton offers lower property prices, making it accessible to a wide range of investors, including first-time buyers and those looking to diversify their portfolios without breaking the bank.
2. Strong Rental Market
Dayton has a robust rental market, driven in part by its diverse economy and the presence of universities and healthcare institutions. Investors can capitalize on a steady demand for rental properties, which can provide a reliable source of income and potential for long-term appreciation.
3. Favorable Economic Environment
Dayton's economy is diverse and stable, with key industries including aerospace, manufacturing, and healthcare. The presence of major employers, such as Wright-Patterson Air Force Base, contributes to a stable job market. A strong economy is often correlated with a healthy real estate market, making Dayton an attractive choice for investors.
4. Low Cost of Living
Investors should consider the overall cost of living in a location, as it can impact the attractiveness of a real estate market. Dayton boasts a cost of living that is lower than the national average, making it an appealing destination for individuals and families, which, in turn, drives housing demand.
5. Potential for Appreciation
While past performance is not indicative of future results, Dayton has seen modest but consistent property value growth in recent years. With its affordability and economic stability, the city has the potential for property appreciation in the coming years, offering investors the opportunity to build equity.
6. Real Estate Development
Dayton has seen ongoing real estate development projects, particularly in its downtown area. These developments can lead to increased property values and improved infrastructure, making it an attractive prospect for real estate investors seeking appreciation and rental income.
7. Proximity to Major Cities
Dayton's location places it within reasonable driving distance of major cities like Cincinnati, Columbus, and Indianapolis. This proximity can attract potential residents and commuters, enhancing the appeal of the city and its real estate market.
8. Diverse Housing Options
Dayton offers a range of housing options, from single-family homes to multi-unit properties. This diversity allows investors to choose properties that align with their investment goals, whether it's cash flow, long-term appreciation, or a mix of both.
9. Favorable Financing Opportunities
Low-interest rates and favorable financing options can make it more cost-effective for investors to acquire properties in Dayton. These conditions can enhance the return on investment and make real estate investment in the area more attractive.
10. Growth Potential
With its affordability, economic stability, and ongoing development projects, Dayton presents significant growth potential. Investors who enter the market in 2023 and 2024 may benefit from the city's long-term expansion and increasing property values.
Investing in real estate carries risks, and it's essential to conduct thorough research, work with local experts, and develop a solid investment strategy. While Dayton offers numerous advantages, it's crucial for investors to align their goals and risk tolerance with the specific opportunities the city provides.
Disclaimer: Real estate markets can fluctuate, and past performance is not indicative of future results. Consult with a financial advisor or real estate professional for personalized investment advice.
References:
- https://www.zillow.com/dayton-oh/home-values
- https://www.redfin.com/city/5413/OH/Dayton/housing-market
- https://www.realtor.com/local/Dayton_OH/housing-market
- https://www.movoto.com/dayton-oh/market-trends