Columbus Area Housing Market Trends for 2023
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.
Let’s continue to explore the Central Ohio housing market to understand the latest trends, according to the Columbus REALTORS®. The central Ohio housing market has seen some ups and downs in the past year, with increases in sales prices but a decrease in the number of sales due to mortgage rate hikes. However, experts predict that the market will continue to grow in 2023, with a surge in population and a demand for housing. Here are some of the top trends to watch for in the central Ohio housing market in 2023:
Decrease in Closed Sales:
The statistics show a 19.2% decrease in closed sales year over year for the month of January. Buyers and sellers are in a holding pattern, and there is a limited inventory of homes for sale.
Increase in New Listings and Total Inventory:
The good news is that there was a 28% increase in new listings in February, with a total inventory of homes for sale up 29% over last year's January inventory.
The Mid-Ohio Regional Planning Commission projects the region to balloon to 3.15 million people over the next 25 years, equating to an additional 272,000 households. This growth will demand an increase in housing, schools, and infrastructure.
Buyers Venturing Outside the I-270 Loop:
One noticeable trend is that buyers are becoming more willing to venture outside of the I-270 loop to find a home. In January, Pickerington saw a 17.5% spike in closed sales, while the average sale price rose 15% to $411,000. Lancaster and Pataskala are also experiencing an increase in sales and higher sale prices.
Emerging Housing Markets Index:
According to The Wall Street Journal and Realtor.com®, Columbus, Ohio, is now the No. 9 emerging market in America.
Days on Market:
Homes are currently sitting on the market for 32 days, up three days over last month and 10 days over January 2022.
While there is still plenty of demand in the greater Columbus area, the housing market may continue to experience a slowdown in sales due to increasing mortgage rates. However, with the projected growth and the emergence of Columbus as a top housing market, it is important for key stakeholders to focus on building the necessary infrastructure to accommodate the region's expanding population.
Columbus Ohio Housing Market Trends
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. This data is provided as an informational resource only. The real estate market in Columbus, Ohio has been showing promising trends over the past year, and the trend seems to be continuing in 2023 as well. In this blog post, we will provide an overview of the current state of the Columbus housing market and the key trends to watch out for.
Median Listing and Selling Prices in Columbus
As of February 2023, the median listing price of a home in Columbus, OH is $247,000, which represents a 9.8% increase compared to the same period last year. The median selling price of homes is $189,900, and homes are typically sold close to the asking price. This indicates that the housing market in Columbus is currently more favorable for buyers than sellers, with more homes available for sale than demand from potential buyers.
Housing Inventory and Days on Market
The current supply of homes on the market in Columbus is greater than the demand, making it a buyer's market. On average, homes in Columbus are sold after 40 days on the market, which is a slight increase from last year. However, the trend for median days on market in Columbus has gone down since last month, indicating that homes are selling faster.
Neighborhood Trends in Columbus
Columbus consists of 204 neighborhoods, each with its own unique charm and character. The most expensive neighborhood in Columbus is German Village, with a median listing price of $575,000, while the most affordable neighborhood is South Linden, with a median listing price of $140,000.
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. In January 2023, Pickerington saw a 17.5% increase in closed sales, while the average sale price rose 15% to $411,000. Lancaster also saw a 17.6% increase in closed sales, with the average sale price increasing by 8.3% to $224,308, 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. Although the housing market is currently favorable for buyers, the trend is likely to shift towards a seller's market in the coming months as the demand for homes increases. As a result, buyers looking to invest in the Columbus housing market should act quickly to secure their dream home at an affordable price.
Franklin County Housing Market Trends
The Columbus Housing Market report by Columbus REALTORS® compares key housing metrics from January 2023 with January 2022. The report indicates a decrease in home sales by 25.6% to 780 units and a decrease in pending sales by 19.7% to 1,144 signed contracts. The Median Sales Price rose by 2.6% to $254,000, while the Average Sales Price dropped by 1.5% to $284,296.
The Average Price Per Square Foot increased by 3.9% to $183.13. Days on Market Until Sale rose by 50% to 30 days, and new listings dropped by 19.6% to 982 homes for sale. However, the total inventory of homes for sale rose by 35.5% to 1,099 units.
Despite the increase in total inventory, the report shows that it is still a strong seller's real estate market with just 0.8 months of inventory left on the market, which is only likely to keep driving prices higher in the near future. A lower level of months’ supply tends to push prices up more rapidly, and historically, six months of supply is associated with moderate price appreciation.
Below is the latest monthly report of the Columbus Housing Market (Franklin County Area). The source of this report is – “Columbus REALTORS®.” The report compares key housing metrics from January 2023 with January 2022.
- Home sales decreased by 25.6% to 780 units.
- Pending sales decreased by 19.7% to 1,144 signed contracts.
- The Median Sales Price rose by 2.6% to $254,000.
- The Average Sales Price dropped by 1.5% to $284,296.
- The Average Price Per Square Foot rose by 3.9% to $183.13.
- Days on Market Until Sale rose by 50% to 30 days.
- New Listings dropped by 19.6% to 982 homes for sale.
- Total Inventory of Homes for Sale rose by 35.5% to 1,099 units.
Columbus Ohio Real Estate Market Forecast 2023-2024
The Columbus, Ohio real estate market has been performing strongly over the past year, with home values increasing by 8.9% on average. Homes are also selling quickly, with a median time to pending sale of just 10 days. In January 2023, the median sale-to-list ratio was 0.998, indicating that homes were selling very close to their listing price.
Interestingly, a significant portion of home sales in January 2023 was above the listing price, with 33.2% of sales being above the asking price. However, 48.1% of sales were under the listing price, suggesting that some homes may be overpriced. The median time to pending sale was 10 days in February 2023, indicating that buyers are eager to act quickly in this market.
There are several neighborhoods in Columbus with varying median ZHVI (Zillow Home Value Index) values. Milo-Grogan has the median ZHVI at $114,460, while Italian Village has the median ZHVI at $397,113.
According to the MSA level forecast, the Columbus, OH real estate market is predicted to continue growing over the next year. By March 31, 2023, the forecasted growth rate is 0.4%, with an even stronger growth rate of 0.8% predicted by May 31, 2023. By February 29, 2024, the forecasted growth rate is expected to reach 1.9%. These forecasts suggest that the Columbus real estate market will remain strong in the near future, making it a potentially lucrative market for buyers and sellers alike.
In conclusion, the Columbus, Ohio real estate market is currently strong, with increasing home values and fast sales. With a favorable MSA level forecast predicting continued growth, this market could be a good opportunity for those looking to buy or sell a home in the near future.
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.