Archives for May 2023

The Sacramento housing market has been a topic of great interest for homeowners, real estate agents, and investors alike. In this report, we will delve into the latest data and statistics to provide an overview of the market's performance in April 2023. We will examine the median sold price of existing single-family homes, as well as the sales trends in comparison to the previous month and the same period last year.

Median Sold Price of Existing Single-Family Homes:

According to the California Association of Realtors®, the median sold price of existing single-family homes in Sacramento County during April 2023 was $515,000. This represents a 3.0% increase compared to the previous month's median price of $500,000. However, it is essential to note that the median sold price has experienced a year-over-year decline of 9.6%, as the price in April 2022 stood at $570,000.

Sales Trends:

The number of home sales in Sacramento County has seen some fluctuations in recent months. In April 2023, the sales volume dropped by 6.6% compared to March 2023. This decline is indicative of a slowdown in the market activity during this period. Furthermore, when compared to April 2022, there has been a significant decline of 40.4% in home sales.

Price MTM% Chg and Price YTY% Chg:

The month-to-month percentage change in the median sold price shows a positive trend, with a 3.0% increase from March to April 2023. However, the year-over-year percentage change reveals a decline of 9.6%, reflecting the overall downward price movement in the housing market over the past year.

Sales MTM% Chg and Sales YTY% Chg:

The month-to-month sales percentage change demonstrates a decrease of 6.6% from March to April 2023. This decline indicates a slowdown in buyer demand and market activity during this period. Additionally, the year-over-year sales percentage change highlights a significant drop of 40.4%, indicating a notable decrease in sales volume compared to April 2022.

Is Sacramento a Seller's Housing Market in 2023?

The following Sacramento housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded.

Median Listing Home Price and Sale-to-List Price Ratio

As of April 2023, the median listing home price in Sacramento County, CA stands at $540,000, which reflects a -1.8% decrease compared to the previous year. Additionally, the median listing home price per square foot is reported to be $322. However, it's essential to consider the sale-to-list price ratio, which indicates how close homes are selling to their listed prices. In Sacramento County, CA, homes have been selling for approximately the asking price on average, with a sale-to-list price ratio of 100%.

Median Days on the Market

Another crucial factor to examine is the median days on the market, which provides insight into the speed at which homes are being sold. In Sacramento County, CA, homes typically sell after an average of 26 days on the market. It's worth noting that the median days on the market have decreased since the previous month, indicating a trend of faster sales. However, compared to the previous year, the median days on the market have seen a slight increase.

Based on the data and market indicators, it can be concluded that Sacramento County, CA is currently a seller's market in 2023. With a median listing home price of $540,000 and homes selling at the asking price on average, sellers have an advantage in this market. The median days on the market have decreased since the previous month, indicating a trend of faster sales.

However, compared to the previous year, there has been a slight increase in the median days on the market. With a substantial number of homes available for sale and a range of rental options, prospective buyers and renters in Sacramento County have various opportunities to find a suitable property.

Sacramento Single Family Housing Market

Below is the latest monthly report of the Sacramento housing market released by the Sacramento Association of REALTORS®. The report shows key housing metrics of Sacramento County and the City of West Sacramento for April 2023.  The Sacramento housing market for single-family homes in April 2023 saw some interesting trends, with changes in sales volume, sales price, listing inventory, and days on the market.

Sales Volume

In April, there were a total of 850 closed sales, indicating a 6.2% decrease compared to the previous month's figure of 906 sales. However, when compared to April 2022, there was a significant decline of 41.2% in sales volume, with only 850 sales as opposed to 1,464 sales. Of the sales made in April 2023, conventional financing accounted for 65%, while cash and FHA financing both represented 13.2% of the sales.

Sales Price

The median sales price for single-family homes in Sacramento showed a positive trend in April. There was a 2.9% increase in the median sales price, rising from $500,500 to $515,000. However, when compared to April 2022, there was an 8.9% decrease in the median sales price, which stood at $565,500. The median sales price represents the midpoint, with exactly half of the monthly sales above this price and half below it.

Listing Inventory

The number of homes available for sale, also known as listing inventory, experienced a 19.3% increase from March to April, rising from 879 units to 1,049 units. However, in comparison to April 2022, there was a decline of 21.8% in inventory, which stood at 1,342 units. The Months of Inventory, a metric indicating the time it would take to deplete the active listing inventory at the current sales rate, increased from 1 month to 1.2 months.

Days on Market

The median Days on Market (DOM) metric provides insights into how quickly homes are selling. In April 2023, the median DOM decreased from 16 to 11 days. This indicates that homes were spending less time on the market compared to the previous month. However, when compared to April 2022, there was an increase from 7 DOM to 11 DOM. Of the 850 sales made in April, 72.5% (616) were on the market for 30 days or less, while 81.7% (694) were on the market for 60 days or less.

Sacramento Housing Market Forecast 2023-2024

The Sacramento housing market has experienced fluctuations over the past year, with changes in home values, market forecasts, and key market indicators. Let's explore the current state of the market and the forecast for the near future.

Average Home Values

According to Zillow, as of April 30, 2023, the average home value in the Sacramento-Roseville-Arden-Arcade area is $556,683. This reflects a 5.8% decrease over the past year, indicating a slight decline in home values. It's important to note that these values are based on historical data up to April 30, 2023, and may be subject to change as market conditions evolve.

1-Year Market Forecast

The market forecast for the Sacramento housing market indicates a projected increase of 0.8% in home values over the next year. While there has been a slight decrease in home values in the past year, the forecast suggests a positive trend in the near future. However, it's crucial to consider that market forecasts are estimates based on various factors and may not guarantee precise outcomes.

Market Indicators

Several market indicators provide valuable insights into the Sacramento housing market. The median sale-to-list ratio, as of March 31, 2023, is reported as 0.992. This ratio suggests that, on average, homes in the area sell very close to their listed prices. Additionally, 31.3% of sales in March 2023 were made over the list price, indicating a competitive market environment. Conversely, 53.9% of sales were made under the list price, suggesting that some buyers may have negotiated discounts.

Days to Pending

The median number of days for a home in Sacramento to go pending, as of April 30, 2023, is 12 days. This means that, on average, homes in the area receive offers and enter the pending stage within a relatively short time frame. A low median days to pending metric can indicate a fast-paced market with high buyer demand and limited housing inventory.

The Sacramento housing market has experienced a decline in home values over the past year. However, the market forecast suggests a potential rebound in the near future, with a projected increase in home values. Market indicators such as the sale-to-list ratio and the percentage of sales over or under the list price reflect the competitiveness of the market and the dynamics between buyers and sellers.

Is Buying a House in Sacramento a Good Investment?

Should you consider Sacramento real estate investment? Now that you know where Sacramento is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Sacramento is a good investment. You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

Let’s talk a bit about Sacramento. Sacramento is the capital of California, though many mistakenly think it is L.A. or another larger city. Sacramento is a minimally walkable city in Sacramento County with a population of approximately just over half a million people. It is overshadowed by bigger, glitzier cities like San Francisco or Los Angeles. When you take suburbs like Yuba City, Truckee, Roseville, and South Lake Tahoe into account, the Sacramento real estate market contains around two million people. However, size isn’t reason enough to invest in any real estate market.

The rise and fall of Detroit and the current decline of other rust belt cities are testaments to this. The city of Sacramento has a mixture of owners and renters, with 47.12% owning and 52.88% renting. According to Neigborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Sacramento. Other types of housing that are prevalent in Sacramento include duplexes, rowhouses, and homes converted to apartments. Sacramento has more renter-occupied housing accounts as compared to owner-occupied.

Single-family detached homes account for roughly 60% of Sacramento's housing units. Looking back in 2018 about 2,400 new dwelling units were built in Sacramento, most of them being single-family detached homes. That’s even more than San Francisco, a city of nearly 900,000 people where new towers have altered the skyline. Overall, neither Sacramento nor California produced nearly the same amount of new housing that occurred during the state’s big building boom more than a decade ago, when home construction in Sacramento peaked at 4,000 new units, city officials said.

Although this article alone is not a comprehensive source to make a final investment decision for Sacramento, we have collected evidence-based positive things for those who are keen to invest in the Sacramento real estate market. Let’s take a look at the number of positive things going on in the Sacramento real estate market which can help investors who are keen to buy an investment property in this city.

Sacramento is a Healthy Housing Market

Sacramento had several thousand people move in there in 2017. Between people relocating here from overheated housing markets and demographic momentum, it saw 1.4 percent growth in 2017 and 2018. This gives the Sacramento housing market a source of slowly increasing demand and rising property values. Yet the area isn’t experiencing a bubble that will burst down the line.

The area also has a steady enough job market that it isn’t experiencing population loss like the San Joaquin Valley due to environmental crackdowns on agriculture or the risk of a collapse like San Francisco’s tech bubble may see. This is why SmartAsset ranked the city as the third healthiest housing market in the state.

For those considering Sacramento real estate investment, median rents of around 1700 dollars a month in Sacramento don’t sound as appealing as the 4000 dollars a month in San Francisco and 3400 dollars a month in San Jose. However, Sacramento is more landlord-friendly than some of the alternatives. For example, the Sacramento housing market isn’t burdened by local rent control laws, though the state government is considering imposing it on the whole state.

A side benefit of the relatively affordable Sacramento real estate market and increasing demand is that any Sacramento real estate investment will see significant appreciation. For example, the average rental rates in the Sacramento housing market went up nearly 9 percent year over year in 2018. That was the greatest increase for any American metro area.

Among all the nation's largest metros, the Sacramento metro area is predicted to have the highest sales and price growth in 2021. Therefore, with the affordable entry price of homes, high appreciation, and growing rent prices, real estate investors in Sacramento can enjoy positive cash flow and nice profits in the long term.

Sacramento's Cost of Living & Quality of Life

Sacramento may not offer the $200,000 salaries of tech startups, but it doesn’t cost you more than a million dollars to buy a modest bungalow, either. Sacramento’s cost of living is much cheaper than the California coast just 75 miles away. That’s why the Sacramento real estate market being 50 percent higher than that national average is irrelevant – it is the sizzling home prices in the Bay Area that make people move here for the relative bargains. The 20 percent higher cost of living is a bargain, too, compared to the California coast.

Sacramento offers a better quality of life than the larger cities it is becoming a suburb of. We’ll ignore the fact you’re far closer to Lake Tahoe because any home in the Sacramento housing market puts you in easy reach of the outdoors. The area offers white water rafting, hot air balloons, mountain biking, fishing, and nature walks. You don’t have to buy a luxury property in the Sacramento real estate market to enjoy beautiful views or live near open spaces.

The area had its great cuisine and entertainment options before the influx of Silicon Valley types, but a livelier night scene is forming, too. A side benefit of the more affordable Sacramento housing market is that homelessness is almost nonexistent in Sacramento. You certainly don’t need a poop-reporting app to avoid the attendant health hazards while you go on your morning run.

One of the reasons to snap up a Sacramento real estate investment over one in the hotter real estate markets is that the area is safer overall. Sacramento has a slightly higher property crime rate than other big cities in cities, but Sacramento has a much lower violent crime rate. People are more concerned about being mugged, raped, or murdered than having their car broken into.

The nonviolent crime stats are also skewed due to the more lenient authorities in San Francisco and Los Angeles. When you ignore people shooting up in public and won’t punish violent panhandlers, your official crime rate is lower but that doesn’t make it better. Sacramento seeks to maintain order, public health, and safety to make it a safer place to live.

Sacramento is Bucking the Bad Trends Plaguing California

California is seeing overall population growth, but it isn’t healthy. Native-born Americans are fleeing the state for Oregon, Nevada, Arizona, and Idaho. They’re replaced by lower-skilled, lower-paid legal and illegal immigrants. This hollows out the middle class of the state while contributing to sky-high poverty rates. Sacramento is a stark contrast to these unhealthy trends. It is receiving an influx of middle-class and working-class people from around the state who don’t want to leave California.

This is why Sacramento ranked number one in the state for one-way U-Haul trips in 2018. This makes the Sacramento real estate market much healthier since it contains a true income mix. It also allows Sacramento real estate investment investors more options than luxury homes and densely packed affordable units, the only types of housing you see built in San Francisco.

People are willing to commute 90 minutes to San Francisco each way to get those Silicon Valley paychecks, though they don’t want to pay SF prices for a property. This is increasing the value of homes on the western side of the Sacramento real estate market since they’ve become a de facto suburb of the Bay Area.

While Yolo County is a rapidly developing suburb of San Francisco, the eastern side of the Sacramento metro area contains large tracts of agricultural land. The Central Valley is one of the most productive agricultural areas in the United States. This means that Sacramento's real estate investment opportunities include agricultural land and former farmland that is open to new development.

Sacramento's Diverse Job Market Is a Plus for Residents

San Francisco suffered a decline in the early 2000s when the first internet bubble burst. Fears of regulation and anti-trust action against Big Tech firms could cause the San Francisco area to suffer a second major decline because they’re so dependent on high tech to bolster the real estate market. Sacramento does have several high-tech jobs, many of them small firms that relocated to the area for its lower cost of living and doing business.

The government is the largest employer, and it is a stable one at that. Healthcare and construction are major employers, as well. This gives Sacramento a more stable job market in addition to low unemployment rates. Tourism and the service sector is a growing contributor, too, as people move here for the lower cost of living and have more money to spend on luxuries like going out. This contributes to the improving quality of life that will keep the Sacramento real estate market going strong.

Sacramento Rent Prices

Sacramento was on the nation’s top 10 list of rent increases in 2020. More people are moving out of big cities and heading toward surrounding areas, like Sacramento. The transition is driving rental prices up in counties like Sacramento, while rent in areas like San Francisco is going down. There is not a whole bunch of rental property inventory out there, which is driving the prices up.

As of May 2023, the average rent for a 1-bedroom apartment in Sacramento, CA is currently $1,595. This is a 0% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Sacramento increased by 3% to $1,500. The average rent for a 1-bedroom apartment increased by 1% to $1,595, and the average rent for a 2-bedroom apartment increased by 1% to $1,895.

The Diverse Sacramento Rental Market Is a Plus for Investors

If you’re considering Sacramento real estate investment, the diverse rental market is a definite plus. Being a state capital, it is home to several universities. This allows you to rent to the relatively large student market in addition to the local population. There is, of course, the University of California campus in Sacramento, but you could own investment properties by American River College and other, smaller schools in the area, too. Around 50% of households are renter-occupied.

Best Neighborhoods in Sacramento to Buy a House

In any property investment, cash flow is gold. California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more. Sacramento is an island of sanity in an overpriced, over-regulated, and overheated West Coast housing market.

It reflects the California ideal that most of the state has lost, and that’s we recommend it to investors over the “hotter” California metro areas. These are the same factors causing many Californians themselves to vote with their feet and move here instead of moving out of the state altogether.

The city remains a choice landing spot for coastal emigres tired of skyrocketing housing costs and long commutes. Sacramento is also a fast-growing city with a flourishing real estate market. Continuously developing economy, employment, and a better quality of life offer a lot of opportunities for real estate investors in Sacramento to purchase single-family homes as investment properties.

Good cash flow from Sacramento investment property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Sacramento in a growing neighborhood would be key to your success. If you invest wisely in Sacramento real estate, you could secure your future.

The less expensive the Sacramento investment property is, the lower your ongoing expenses will be. When looking for the best real estate investments in Sacramento, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.

The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Sacramento might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.

Sacramento home prices are some of the most expensive in all of the United States. There are 89 neighborhoods in Sacramento. Midtown has a median listing price of $838.9K, making it the most expensive neighborhood. Hagginwood is the most affordable neighborhood, with a median listing price of $278K (Realtor.com).

Some of the most popular neighborhoods in Sacramento, California are Florin, East Sacramento, Midtown, Meadowview, Natomas Crossing, Arden-Arcade, North Sacramento, Elmhurst, East Sacramento, Tahoe Park, North Highlands, Natomas Park, Hollywood Park, Rancho Cordova, and South Land Park.

Elmhurst, Land Park, and Upper Land Park are some of the top neighborhoods in Sacramento to buy investment properties. These are quite affordable neighborhoods with a low entry price of homes, high cash-on-cash returns, and a positive appreciation forecast for the coming years. According to Zillow, Elmhurst home values have gone down 0.2% over the past year. Typical Home Value is $616,096 (Data through September 30, 2022).

According to Realtor.com Market Hotness Index, Elmhurst, Sacramento, CA is VERY HOT at the moment. It ranks in the top 11% of neighborhoods in the area and the top 28% in the U.S. Homes sell 5 days slower and are 23% less popular than homes in the surrounding area. In October 2022, the median list price of homes in Elmhurst was $580K, trending down 13.4% year-over-year. The median sale price was $580K. It is a seller's market.

Land Park, Sacramento, CA is also VERY HOT. It ranks in the top 3% of neighborhoods in the area and the top 13% in the U.S. Homes sell 4 days faster and are 116% more popular than homes in the surrounding area. In October 2022, the median list price of homes in Land Park was $749.9K on Realtor.com, trending up 7.3% year-over-year. The median sale price was $750K. It is a seller's market.

Upper Land Park is a neighborhood in the more general Land Park area of Sacramento, California. The real estate is primarily made up of small (studio to two bedrooms) to medium-sized (three or four bedrooms) single-family homes and apartment complexes/high-rise apartments. Most of the residential real estate is occupied by a mixture of owners and renters.

Upper Land Park, Sacramento, CA is also VERY HOT at the moment. It ranks in the top 3% of neighborhoods in the area and the top 13% in the U.S. It is a seller's market. The housing supply is very tight compared to the demand for property here. In October 2022, the median listing home price in Upper Land Park was $529K, trending up 2.7% year-over-year. The median home sold price was $493.7K.

Top 10 Sacramento Neighborhoods Where Real Estate Is Going Up

Here are the ten neighborhoods in Sacramento having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.

1. Central Oak Park
2. Woodlake
3. South Hagginwood
4. Norwood I-80
5. Youngs Heights
6. Central Oak Park East
7. Midtown Winn Park Capital Avenue North
8. Boulevard Park
9. Old Sacramento
10. Glen Elder North

We recommend taking the help of the local real estate agents to find neighborhoods with an affordable entry prices of homes, high appreciation forecasts, and growing rent prices so that as an investor you can enjoy positive cash flow and nice profits. Apart from Sacramento, you can also invest in many other real estate markets in California. California's real estate market is the focus of many U.S. and foreign real estate investors.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your turnkey investment properties.

Not just limited to Sacramento or California but you can also invest in some of the hottest real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience with our team to see if Sacramento makes sense as a place to invest today.

We can help build you a custom portfolio of turnkey properties located in some of the best markets in the United States. By researching and structuring complete turnkey real estate investments, we can help you succeed by minimizing risk and maximizing profitability.

This article shouldn't be used to make real estate or financial decisions. Some of this article's information came from referenced websites. Norada Real Estate Investments makes no express or implied representations, warranties, or guarantees that the information is accurate, reliable, or current. All information should be validated using the below references. Norada Real Estate Investments does not predict the future US housing market. Buying a rental property requires research, planning, and budgeting. Not all investments are good. Always do research and consult a real estate investment counselor.

References

Market Data, Reports & Forecasts
https://www.sacrealtor.org/
https://www.sacrealtor.org/consumers/housing-statistics
https://www.zillow.com/sacramento-ca/home-values
https://www.littlebighomes.com/real-estate-sacramento.html
https://www.neighborhoodscout.com/ca/sacramento/real-estate
https://www.sacbee.com/news/coronavirus/article243805667.html
https://www.realtor.com/realestateandhomes-search/Sacramento_CA/overview

Foreclosures
https://www.realtytrac.com/statsandtrends/ca/sacramento-county/sacramento

Best Neighborhoods
https://www.homeunion.com/sacramento-ca/
https://www.neighborhoodscout.com/ca/sacramento/real-estate

Top Reasons to Invest in Sacramento
https://en.wikipedia.org/wiki/California_locations_by_crime_rate
https://realestate.usnews.com/places/california/sacramento/jobs
https://www.gobankingrates.com/making-money/economy/sacramento-vs-bay-area
https://www.thesandiegocriminallawyer.com/california-cities-most-dangerous.html
https://www.theguardian.com/business/2019/apr/29/big-tech-regulation-facebook-google-amazon
https://www.abc10.com/article/news/local/5-rent-controlled-cities-in-california/103-591256565
https://www.thrillist.com/entertainment/san-francisco/why-sacramento-is-the-new-oakland-sf
https://www.sfgate.com/bayarea/article/SnapCrap-app-San-Francisco-poop-feces-dirty-street-13281837.php
https://www.sfgate.com/expensive-san-francisco/article/uhaul-sacramento-san-francisco-moving-exodus-13509219.php
https://www.sfgate.com/expensive-san-francisco/article/sacramento-move-grass-is-greener-tips-bay-area-13164238.php
https://www.technologyreview.com/s/613628/big-tech-breakup-regulation-antitrust-apple-amazon-google-facebook-doj-ftc-policy

Rental Market Trends
https://www.rentjungle.com/average-rent-in-sacramento-rent-trends/
https://www.rentcafe.com/average-rent-market-trends/us/ca/sacramento/

We will discuss the latest Columbus Ohio real estate market trends & news and find out how they can affect investors and homebuyers in 2023. Columbus is a slowly and steadily growing real estate market that will be thriving well into the foreseeable future. The real estate statistics in Columbus show us that while construction is increasing, inventory is still scarce because of increasing demand. This is leading to a steady year-over-year increase in Columbus house prices.

March signifies the start of Spring, and the central Ohio housing market saw a significant uptick month over month. As we head into the peak season for buying and selling in central Ohio, the market continues to present challenges and opportunities. Rising home prices, limited inventory, and increased competitiveness create a dynamic environment for buyers and sellers. Let’s continue to explore the Central Ohio housing market to understand the latest trends, according to the Columbus REALTORS®.

Increase in Closings and Average Sale Price

In March, there were 2,304 closings, marking a substantial increase from the 1,728 closed sales in February—a month-to-month growth of 33 percent. This surge in activity is an encouraging sign for the central Ohio housing market. Additionally, the average sale price experienced a notable increase, reaching $328,769, compared to $318,826 in March of the previous year.

Columbus Ranks High on Hottest Housing Markets List

Columbus made a noteworthy move on the Realtor.com Top 20 Hottest Housing Markets list, climbing from fifth place in February to fourth in March. This ranking is determined by market demand, measured by unique views per property on Realtor.com, and the pace of the market, measured by the number of days a listing remains active. This rise in position reflects the strong interest and activity in the Columbus housing market.

Yearly Comparison

When comparing March 2023 to the same period the previous year, there was a 5.2 percent decrease in closed sales. However, the average sale price demonstrated a positive trend, increasing by 3.1 percent to over $10,000 compared to the previous year.

Affordability and Cost of Living

Despite rising prices, Columbus remains one of the most affordable metros in the U.S. According to the Bankrate.com Cost of Living Comparison Calculator, living in Columbus is significantly more affordable than in other cities such as Seattle, Denver, and Washington, D.C. This affordability factor contributes to the appeal of the central Ohio housing market.

Increasing Competitiveness and Faster Sales

For the past couple of years, central Ohio homebuyers have become accustomed to homes selling slightly over the asking price. Last year, the percentage of the last list price received was 103.5%, and this month the average is back over asking at 100.3%. Homes are selling faster, with 72.6 percent of homes sold in 30 days or less in March. On average, homes last 34 days on the market, but in some of central Ohio's hottest suburbs, such as Westerville City School District and Dublin (Corp.), homes were sold in as little as 10 to 16 days.

Decrease in New Listings and Total Inventory

The competition in the central Ohio housing market remains fierce, primarily due to a decrease in the number of new listings. In March, there were 2,630 new listings, representing a 20 percent drop compared to the previous year. The current total inventory stands at 2,322 homes in central Ohio. This limited inventory poses a challenge for buyers, emphasizing the need for swift action in this market.

Standout Performances in School Districts

Certain school districts in central Ohio experienced exceptional performance in March. The South-Western Consolidated School District in Grove City saw 151 closed sales with an average sales price of $310,138, representing a 13.4 percent increase compared to the previous year. The Olentangy Local School District in Delaware County recorded 111 closings with an average sale price of $584,123, marking a 10.1 percent increase.

Is Columbus Ohio a Seller's Real Estate Market in 2023?

The following housing market trends are based on single-family, condo, and townhome properties listed for sale in Columbus on Realtor.com. Land, multi-unit, and other property types are excluded. Columbus, Ohio, offers a thriving real estate market with a wide range of neighborhoods to suit various lifestyles. Whether you're looking to buy or rent a home, this city has plenty to offer.

Real Estate Highlights in Columbus, OH:

Columbus, OH, boasts a dynamic real estate market with a range of options. With 2,113 homes for sale in 204 neighborhoods on Realtor.com, Columbus offers a variety of choices for prospective buyers. Home prices have a median listing price of $279.9K. In April 2023, Columbus saw a 5.6% year-over-year increase in median listing home prices. The median listing home price per square foot was $182, and the median sold home price was $269K.

According to the information provided, Columbus, OH, is described as a seller's market. It states that there are more people looking to buy homes than there are homes available, indicating a higher demand for properties. Additionally, it mentions that homes in Columbus, OH, sold for approximately the asking price on average in April 2023.

These factors suggest that sellers have an advantage in the current real estate market in Columbus, OH. On average, homes in Columbus sell after 20 days on the market. The trend for median days on the market has decreased compared to the previous month and slightly increased compared to the previous year.

Trends to Watch Out For in 2023

The Columbus housing market is expected to continue to grow in 2023, with new construction and expansion projects underway. The construction of Intel’s “Ohio One” semiconductor campus in Licking County is expected to drive housing demand in nearby areas. As a result, housing inventory in towns like Pataskala is likely to remain low, driving up home prices.

Additionally, more buyers are venturing outside of the I-270 loop to find their dream homes, according to the Columbus REALTORS®. Overall, the Columbus housing market shows promising trends in 2023, with an increase in home prices and new construction projects driving demand.

Columbus Ohio Real Estate Market Forecast 2023-2024

The Columbus real estate market has been experiencing steady growth over the past year. According to Zillow, as of April 30, 2023, the average home value in Columbus stands at $240,398, reflecting a 4.7% increase compared to the previous year. This upward trend indicates a positive appreciation in home values, making it an attractive market for homeowners and investors.

One notable aspect of the Columbus real estate market is the speed at which homes are going pending. On average, homes in Columbus go pending in approximately 4 days, indicating a high demand for properties. This fast-paced market suggests that buyers need to act quickly when they find a desirable property.

Key statistics reveal further insights into the Columbus real estate market:

• Median Sale to List Ratio: As of March 31, 2023, the median sale-to-list ratio in Columbus is 0.998. This indicates that, on average, homes are selling very close to their listing price, further emphasizing the competitive nature of the market.
• Sales Over List Price: Approximately 39.2% of sales in Columbus are happening over the list price, suggesting a strong buyer demand and potential bidding wars for desirable properties.
• Sales Under List Price: Around 43.0% of sales in Columbus are occurring under the list price. This indicates that while there are instances of homes selling above the asking price, there are still opportunities for buyers to negotiate and find deals below the list price.
• Median Days to Pending: The median days to pending, as of April 30, 2023, is 4 days. This short time frame highlights the quick pace at which properties are being snatched up by eager buyers.

Columbus MSA Forecast for 2024:

Looking ahead to the Columbus Metropolitan Statistical Area (MSA) forecast for 2024, the projected growth rate indicates a continued positive trajectory for the real estate market. Based on the provided data, the forecast suggests the following changes in the Columbus MSA:

• May 31, 2023: Projected growth rate of 0.6%
• July 31, 2023: Projected growth rate of 1.3%
• April 30, 2024: Projected growth rate of 5.5%

These figures suggest that the Columbus MSA is expected to experience significant growth over the next year, further strengthening the real estate market. This forecast indicates a favorable environment for homeowners and investors, with the potential for continued appreciation in property values.

Columbus Real Estate Investment Overview?

Columbus, Ohio, is one of the fastest-growing cities in the Midwest, with a population of over 900,000. The city's real estate market has been on an upward trajectory in recent years, with home prices and rental rates rising steadily. This makes it an attractive destination for real estate investors looking for a stable and profitable investment.

Investing in Columbus real estate offers a wide range of opportunities, from single-family homes to multi-unit apartment complexes. The city's diverse economy, low unemployment rate, and growing population make it a promising market for rental properties. According to Zillow, the median home value in Columbus is $227,481, up 8.9% over the past year. This suggests that property values are on an upward trend, which can be advantageous for investors seeking long-term appreciation.

One key advantage of investing in Columbus real estate is the affordability of properties compared to other major cities. While coastal markets like New York and San Francisco may have higher appreciation rates, they also have significantly higher price tags, making it difficult for many investors to enter the market. In contrast, Columbus offers relatively affordable properties with solid returns on investment.

Another factor that makes Columbus an attractive real estate investment destination is the city's growing job market. The unemployment rate in Columbus is consistently below the national average, with a diverse economy that includes sectors like healthcare, education, and technology. This means there is a steady demand for rental properties from young professionals and families who are moving to the city to take advantage of job opportunities.

The Columbus real estate market is also attractive to investors due to the city's robust infrastructure and transportation network. The city has a well-developed public transportation system, including buses, light rail, and bike-sharing programs, making it easy for residents to get around without a car. Additionally, the city is home to Port Columbus International Airport, which provides direct flights to many major U.S. cities.

When considering investing in Columbus real estate, it's essential to note that the market can vary significantly from neighborhood to neighborhood. For example, the median home value in Italian Village is $397,113, while in Milo-Grogan, it is $114,460. Therefore, it's essential to research individual neighborhoods and consult with a local real estate agent who has a deep understanding of the market.

In summary, Columbus offers a promising real estate investment opportunity, with affordable properties, a strong job market, and a growing population. While the market can vary by neighborhood, investing in Columbus real estate offers the potential for solid returns on investment in both the short and long term.

Top Reasons to Invest in Columbus Real Estate Market for the Long Term

Investing in real estate can be a lucrative long-term strategy, but it's important to choose the right market. Columbus, Ohio, is a city that is increasingly becoming popular among real estate investors. Here are the top six reasons to consider investing in Columbus real estate market for the long term:

• Strong Job Market: Columbus has a diverse economy and a strong job market. The city is home to several Fortune 500 companies, including Nationwide Insurance, American Electric Power, and Huntington Bancshares. The city also boasts a thriving technology sector, with companies like IBM and JPMorgan Chase had a significant presence in the area. With a low unemployment rate and a growing economy, Columbus is an attractive location for those looking to invest in real estate.
• Growing Population: Columbus has experienced steady population growth over the past decade, making it one of the fastest-growing cities in the United States. This growth is expected to continue in the coming years, with estimates suggesting that the population will increase by 10% by 2030. A growing population means an increased demand for housing, which can translate to higher rental yields and property values.
• Affordable Housing Market: Despite its strong job market and growing population, Columbus remains an affordable housing market, especially when compared to other major cities. The median home price in Columbus is currently around $227,481, which is significantly lower than in other cities like New York, San Francisco, or Los Angeles. This makes Columbus an attractive option for real estate investors looking to get in on the ground floor of an emerging market.
• Strong Rental Market: Columbus has a strong rental market, with rental demand consistently outpacing supply. This has resulted in a relatively low vacancy rate, which has been hovering around 5% for the past few years. The strong rental market is good news for real estate investors, as it means they are likely to find tenants quickly and keep their properties occupied for longer periods. As of March 2023, the average rent for a 1-bedroom apartment in Columbus, OH is currently $975. This is an 8% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Columbus remained flat. The average rent for a 1-bedroom apartment increased by 2% to $975, and the average rent for a 2-bedroom apartment remained flat.
• Favorable Tax Climate: Ohio has a relatively low tax burden compared to other states, making it an attractive location for real estate investors. Property taxes in Columbus are also relatively low compared to other major cities, which can help investors keep their expenses down and their profits up.
• Thriving Arts and Culture Scene: Columbus has a vibrant arts and culture scene, with several museums, theaters, and galleries located in the city. The city also hosts several festivals throughout the year, including the Columbus Arts Festival and the Ohio State Fair. This cultural richness attracts more people to the city and makes it an even more attractive place to live, work, and invest in real estate.

Therefore, Columbus, Ohio, offers a combination of strong economic fundamentals, affordable housing, and a thriving rental market, making it an attractive option for real estate investors looking to make long-term investments. As with any real estate purchase, act wisely. Evaluate the specifics of the Columbus housing market at the time you intend to purchase.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Columbus.

Consult with one of the investment counselors who can help build you a custom portfolio of Columbus turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Columbus.

Not just limited to Columbus or Ohio but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Columbus turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

There are many other markets in the state of Ohio for real estate investing. Cincinnati is one of them. The Cincinnati real estate market is on the upswing and looking strong for the foreseeable future. It provides many opportunities for investors, regardless of the market you want to invest in. It is growing faster than the nation as a whole, though this is partially due to its recovery from a low point during the Great Recession. It is recovering home values and growth in cheap markets can yield the greatest ROI.

Cleveland is another good market to invest in real estate. Cleveland is a notable exception to the decline of the Rust Belt cities. It has managed to reinvent itself, shifting from classic manufacturing to biotech and medicine. In the process, it has maintained its population and has strong potential for growth both economically and demographically.

Let us know which real estate markets you consider best for real estate investing! 

Remember, caveat emptor still applies when buying a property anywhere. Some of 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

Sources:

• https://www.columbusrealtors.com/housing-reports
• https://www.zillow.com/Columbus-oh/home-values
• https://www.neighborhoodscout.com/oh/columbus/real-estate
• https://www.realtor.com/realestateandhomes-search/Columbus_OH/overview