The Akron housing market is a relatively affordable market with a median home price of $140K in October 2023. Home prices have increased by almost 20% from the previous year, but the market is still considered to be buyer-friendly.
Akron Housing Market Trends in 2023
There are a few key trends that are driving the Akron housing market in 2023:
- Low inventory: There is a limited supply of homes on the market in Akron, which is driving up prices.
- High demand: Demand for homes in Akron is high, due to factors such as the city's growing economy and its affordability.
- Rising interest rates: Interest rates are rising, which is making it more expensive to borrow money to buy a home.
Competitiveness in Akron
Akron stands as a highly competitive housing market, evidenced by its Redfin, signifying the highest level of competitiveness. Homes in Akron often receive multiple offers, some with waived contingencies. On average, homes sell for about 1% below list price and go pending in around 23 days. Hot homes, in particular, can sell for approximately 4% above list price and go pending in just 5 days.
Sale-to-List Price Ratio
The sale-to-list price ratio for all home types in Akron is 99.7%, indicating a robust market where homes are typically sold very close to their list prices. This reflects the desirability and competitiveness of the Akron housing market.
Akron's appeal extends beyond its current residents, as the city attracts homebuyers from various metros. According to the latest data, 0.68% of homebuyers nationwide searched to move into Akron from outside metros. Los Angeles, New York, and San Francisco lead the pack in contributing to Akron's inbound migration.
Tips for Buyers in the Akron Housing Market
- Get pre-approved for a mortgage before you start shopping for a home. This will give you an idea of how much you can afford to borrow and make you a more competitive buyer.
- Work with a real estate agent who is familiar with the Akron housing market. A good agent can help you find homes that meet your needs and budget, and they can negotiate on your behalf.
- Be prepared to act quickly. Homes in Akron are selling fast, so you need to be ready to put in an offer as soon as you find a home you like.
Akron Housing Market Predictions 2024
Zillow, a trusted source for real estate data and predictions, offers valuable insights into the Akron housing market as of September 30, 2023. These predictions are essential for those interested in the Akron real estate market, whether as buyers, sellers, or investors. Here are the key statistics and predictions provided by Zillow.
The Akron housing market reflects a robust performance. The average home value in Akron stands at $115,236, marking a 4.4% increase over the past year. Impressively, homes in Akron typically go pending in a mere 8 days, emphasizing the market's quick turnover.
As of October 31, 2023, the for-sale inventory comprises 620 homes, with 282 new listings introduced in the same period. Notably, the median sale to list ratio, a key indicator of market health, is recorded at 1.000 as of September 30, 2023. The median sale price is $111,667, while the median list price stands at $121,300 as of October 31, 2023. Additionally, 44.1% of sales are over the list price, demonstrating the competitiveness of the Akron housing market, with 44.5% of sales below the list price.
Akron MSA Housing Market Forecast 2023-2024
The Akron Metropolitan Statistical Area (MSA) housing market forecast for 2023 and 2024, according to Zillow, presents a nuanced outlook. The data indicates a modest growth of 0.2% by November 30, 2023, followed by a marginal decline of -0.2% by January 31, 2024. Looking further ahead to October 31, 2024, a more pronounced decrease of -1% is projected. This forecast suggests a cautious trajectory for the Akron MSA, with fluctuations that may impact both buyers and sellers in the coming months.
The Akron Metropolitan Statistical Area (MSA) encompasses a geographical region, including Akron, OH, and surrounding counties. In this context, an MSA serves as a statistical area delineated by the U.S. Office of Management and Budget for the purpose of collecting and analyzing data. The Akron MSA includes several counties in Ohio and contributes significantly to the state's overall housing market. The housing market's size is influenced by factors such as population, economic activities, and overall growth trends within the region.
Investing in the Akron Real Estate Market: Factors to Consider
Investing in the real estate market is a significant decision that requires a thorough analysis of various factors. When it comes to the Akron real estate market, several data and statistics play a crucial role in understanding its investment potential. Let's examine these factors and their potential impact on the Akron real estate market:
1. Population Growth Trends
The population growth trends in Akron are a key consideration for real estate investors. As of the latest available data, understanding whether the population is growing, stable, or declining is crucial. Population growth can drive demand for housing, impacting property values and rental income.
In Akron, it's important to note that population trends have been relatively stable in recent years. While not experiencing explosive growth, a stable population can provide a reliable and steady demand for housing, making it a suitable choice for long-term real estate investors.
2. Local Economy
The local economy plays a vital role in the health of the real estate market. A strong and diverse economy often attracts businesses and residents, positively affecting the housing market. In Akron, there are several noteworthy factors to consider:
- Employment Opportunities: Akron's economy benefits from the presence of major companies, including FirstEnergy, Goodyear Tire & Rubber, and PPG Industries. The stability of these companies can provide a reliable source of jobs for residents.
- Diversification: A diverse economy with a mix of industries can enhance the resilience of the real estate market. Akron's economic diversification includes manufacturing, healthcare, and education sectors.
These economic factors suggest that Akron's economy can have a positive impact on the real estate market, as it attracts both homeowners and renters due to job opportunities and stability.
3. Jobs and Employment
The availability of jobs and employment rates in Akron directly affect the housing market. Investors should consider the following job-related factors:
- Unemployment Rate: A low unemployment rate typically indicates a healthy job market and can stimulate housing demand.
- Job Diversity: A mix of job sectors can create a diverse tenant pool, reducing the risk associated with economic downturns in specific industries.
Overall, Akron's job market has remained relatively stable, with a mix of employment opportunities across multiple sectors, further supporting the real estate market's health.
4. Rental Market
For investors interested in rental properties, the rental market's condition is a critical factor. Data and statistics related to the rental market include:
- Rental Demand: Analyzing rental demand in Akron is essential. Factors such as a growing job market and a stable population can increase the demand for rental properties.
- Rental Rates: Understanding rental rates and their trends can help investors determine potential rental income. Akron's rental rates should be compared to property acquisition costs for profitability assessments.
Additionally, it's worth considering local regulations and landlord-tenant laws that may impact the rental market in Akron. Staying informed about these regulations is crucial for property management.
5. Property Taxes and Investment Incentives
Property taxes can significantly impact the return on investment for real estate properties. Investigate Akron's property tax rates and any potential incentives or tax breaks for real estate investors. Lower property taxes or investment incentives can improve your investment's overall profitability.
6. Infrastructure and Development
Investment in infrastructure and development projects, such as transportation, schools, and public amenities, can influence property values. Areas with planned improvements may experience increased demand and appreciation in property values.
7. Market Sentiment
Local market sentiment and investor confidence can impact real estate prices. Monitoring the perception of Akron's real estate market among professionals and the community can provide insight into future trends.
Investing in the Akron real estate market can be a favorable option, especially for those looking for stable and potentially profitable opportunities. The city's stable population, diverse economy, and job opportunities make it an attractive choice. However, as with any real estate investment, thorough research, due diligence, and consideration of all the factors mentioned above are essential to make informed and successful investment decisions.
References:
- https://www.zillow.com/akron-oh/home-values
- https://www.redfin.com/city/244/OH/Akron/housing-market
- https://www.realtor.com/realestateandhomes-search/Akron_OH/overview
