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
