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.
Central Ohio Housing Report
The Central Ohio real estate market experienced notable dynamics in October, with 2,360 closed sales in the Central Ohio Regional MLS. However, this marked a 7.7% decline compared to the same period last year, according to Columbus REALTORS®
Market Statistics for October
- Closed Sales: 2,360, reflecting a 7.7% YoY decline.
- Median Sales Price: $305,000, a 7% increase from October 2022's $284,945.
- Days on Market: Homes are selling briskly, with an average of just 22 days, similar to the previous year.
Columbus REALTORS® President Patti Brown-Wright reflects on the market's performance, stating, “We only have two months of 2023 left, and I think we have a pretty good snapshot of where we are in comparison to 2022.”
2023 Snapshot
Sales Pace: The market is approximately 15% off the pace set in 2022, indicating a shift in the dynamics of buyer and seller interactions.
Median Sales Price Increase: The median sales price has witnessed a substantial 5% increase, reaching $305,000.
Patti Brown-Wright highlights the critical factors contributing to the market's changes, emphasizing, “The biggest difference between October 2022 and October 2023 really comes down to mortgage rates and rising prices.”
Factors Influencing the Market
Mortgage Rates: Mortgage rates were approximately two points lower at this time last year, impacting affordability for potential buyers.
Inventory: While inventory has seen a slight increase, the median sales price has also risen by 7%, indicating a complex interplay of supply and demand.
Year-to-Date Overview
Total Sales: Year to date, there have been 23,568 sales in the Central Ohio regional MLS, contributing to a total sales volume of $8.2 billion.
Comparison: In contrast, the same period last year recorded 27,605 sales in the MLS, amounting to a volume of $9.1 billion.
Local Market Spotlights
In the Worthington City School District, 63 sales saw a remarkable 57.5% increase year over year. The median sale price in Worthington stood at $367,000 in October.
The Hilliard City School District experienced a 19% increase in sales, with 125 transactions this month. The median sale price in Hilliard rose by 15.6% to $382,000.
Is Columbus Ohio a Seller's Real Estate Market?
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. In October, the housing market in Columbus, OH, showed several key indicators that suggest it is currently a seller's market. Let's delve into the details:
Current Market Trends and Statistics
In October 2023, the median listing home price in Columbus, OH stood at $285.9K, showcasing a substantial 10% year-over-year increase. This upward trajectory in home prices is a significant indicator of the city's robust real estate market.
The median listing home price per square foot is $187, underlining the value proposition of properties in Columbus. Understanding the cost per square foot provides prospective buyers with essential insights into the affordability and potential return on investment.
Sale-to-List Price Ratio
One notable statistic contributing to the vibrancy of the Columbus housing market is the 100% sale-to-list price ratio. This indicates that, on average, homes in Columbus sold for the asking price in October 2023. Such a balanced ratio is favorable for both buyers and sellers, fostering a harmonious real estate ecosystem.
Market Balance: Seller's Dominance
Columbus, OH emerges as a seller's market in October 2023. The demand for homes outweighs the available inventory, creating a scenario where sellers have the upper hand. This dynamic often leads to competitive offers and swift property transactions.
Median Days on Market
One critical metric for gauging the pace of the Columbus housing market is the median days on market, which stands at 31 days. This means that, on average, homes are sold within a month of being listed. Understanding this timeframe is crucial for both buyers and sellers to navigate the market efficiently.
The trend for median days on market in Columbus, OH has seen a slight increase since the previous month. However, when compared to the previous year, there is a marginal decrease, showcasing the market's resilience and adaptability.
Forecast for Columbus, OH 2023
As we move forward into 2023, the Columbus housing market is poised for continued growth, fueled by factors such as economic stability, population trends, and overall market dynamics. The forecast suggests that the city's real estate landscape will remain robust, offering opportunities for both buyers and sellers.
Columbus Ohio Housing Market Forecast 2023-2024
Let's take a closer look at the real estate market forecast for Columbus, Ohio, as provided by Zillow. This data offers valuable insights into the current and future trends in the housing market.
As of October 31, 2023, the average home value in Columbus stands at $237,662, reflecting a notable 3.9% increase over the past year. Homes in Columbus go to pending status swiftly, taking an average of just 5 days.
Market Metrics (Data through October 31, 2023)
- For Sale Inventory: 1585 homes available for sale.
- New Listings: 808 new listings in October 2023.
- Median Sale to List Ratio (September 30, 2023): 1.005, indicating a balanced market.
- Median Sale Price (September 30, 2023): $235,333.
- Median List Price (October 31, 2023): $268,267.
- Percent of Sales Over List Price (September 30, 2023): 52.7%.
- Percent of Sales Under List Price (September 30, 2023): 31.7%.
The Columbus metro housing market, as forecasted by Zillow, showcases a positive outlook with an anticipated 0.1% increase by November 30, 2023. While a slight dip of -0.1% is expected by January 31, 2024, the forecast predicts a renewed growth of 0.1% by October 31, 2024.
The Columbus Metropolitan Statistical Area (MSA) encompasses various counties in Ohio, including but not limited to Franklin County, Delaware County, and Fairfield County. This MSA represents a significant portion of the state's housing market. With a diverse range of communities and neighborhoods, the Columbus MSA contributes substantially to Ohio's real estate landscape.
Note: All data and forecasts are based on information available as of October 31, 2023.
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 average home value in Columbus is $237,662, up 3.9% 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.
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
