The current dynamics of the Dayton housing market present a balanced scenario. While the market is competitive, with properties selling relatively quickly, the presence of homes with price drops indicates a level of flexibility. This suggests a market that caters to both buyers and sellers, providing opportunities for negotiation.
Current Dayton Housing Market Trends
How is the Housing Market Doing Currently?
The Dayton housing market witnessed a robust performance in December 2023, with home prices experiencing a significant surge of 12.7% compared to the previous year. According to Redfin, the median home price in Dayton reached $115,000, showcasing a positive trend in the real estate landscape. However, it is noteworthy that the number of homes sold in December decreased from 145 to 118 compared to the same period last year.
On average, homes in Dayton spent 41 days on the market, slightly higher than the 38 days recorded the previous year. This data reflects the dynamic nature of the Dayton real estate market, where properties are selling at a reasonable pace.
How Competitive is the Dayton Housing Market?
Dayton's housing market is characterized by a 68% lower median sale price than the national average. The city proves to be somewhat competitive, with homes typically selling in 36 days. Notably, some homes receive multiple offers, underscoring the demand in the market.
On average, homes in Dayton sell for approximately 4% below the list price, with a pending status achieved in around 36 days. Hot properties, on the other hand, can sell for around the list price and go pending within a remarkable 10 days.
Are There Enough Homes for Sale to Meet Buyer Demand?
The sale-to-list price ratio in Dayton stands at 97.0%, representing a 1.2-point increase year-over-year. Additionally, homes sold above list price have seen a 10.4-point rise, reaching 29.7%. While the market exhibits competitive aspects, there is a noteworthy 26.2% of homes with price drops, albeit a slight 0.35-point decrease compared to the previous year.
What is the Future Market Outlook in Dayton?
The migration and relocation trends in Dayton from November '23 to January '24 indicate that 56% of homebuyers explored moving out of Dayton, while 44% sought to stay within the metropolitan area. The data suggests a diverse landscape, reflecting both internal and external interest in the Dayton real estate market.
Regarding external interest, 0.21% of homebuyers across the nation searched to move into Dayton from outside metros. Notably, New York homebuyers expressed the highest interest in moving to Dayton, followed by Los Angeles and Washington.
Dayton Housing Market Forecast 2024-2025
According to Zillow, a prominent real estate platform, the average home value in Dayton stands at $135,708, reflecting a 2.5% increase over the past year. Homes in this market typically go pending in approximately 15 days (Data through January 31, 2024).
For Sale Inventory (January 31, 2024):
485 homes are currently listed for sale in Dayton as of January 31, 2024. This inventory provides potential buyers with a diverse range of options to explore.
New Listings (January 31, 2024):
In January 2024, 175 new listings have emerged in the Dayton housing market. This influx of fresh properties contributes to the dynamic nature of the real estate landscape.
Median Sale to List Ratio (December 31, 2023):
The median sale to list ratio, a key indicator of market competitiveness, is reported at 0.992 as of December 31, 2023. This ratio suggests that, on average, homes in Dayton are selling very close to their listed prices.
Median Sale Price (December 31, 2023):
As of December 31, 2023, the median sale price for homes in Dayton is $105,783. This figure provides valuable insights into the pricing trends within the market.
Median List Price (January 31, 2024):
The median list price, standing at $136,283 as of January 31, 2024, indicates the average asking price for homes in the current market conditions.
Percent of Sales Over List Price (December 31, 2023):
Examining the market competitiveness, 27.8% of sales in Dayton surpassed the list price as of December 31, 2023. This statistic highlights the demand and potential bidding wars in certain segments of the market.
Percent of Sales Under List Price (December 31, 2023):
Conversely, 50.5% of sales in the same period were negotiated under the list price. This data points towards the negotiating power that buyers may have in specific scenarios.
Are Home Prices Dropping in Dayton?
Contrary to a potential drop, the data shows a 2.5% increase in average home value over the past year, reaching $135,708. This upward trend in value suggests stability and positive growth rather than a decline in home prices.
Will the Dayton Housing Market Crash?
As of the current analysis, there are no indications of an imminent housing market crash in Dayton. The balanced market conditions, steady price increases, and reasonable inventory levels contribute to a stable environment. However, it's essential to monitor economic factors and market trends for a comprehensive understanding.
Is Now a Good Time to Buy a House in Dayton?
Considering the current housing metrics, it appears to be a favorable time for both buyers and sellers. The balanced market conditions provide options for buyers, while the competitive nature of sales ratios and pricing indicates opportunities for sellers. Ultimately, individual circumstances and goals should guide decisions regarding whether it's an opportune time to buy a house in Dayton.
Is Housing Affordability a Concern in Ohio?
While Dayton's housing market has shown stability, some might wonder if housing prices are dropping across Ohio. It's important to note that real estate conditions can vary significantly from one city to another within the state. Dayton's modest decrease in home values over the past year should be considered in the broader context of Ohio's diverse real estate landscape.
Why Is Real Estate Affordable in Dayton, Ohio?
The affordability of real estate in Dayton can be attributed to several factors, including a lower cost of living compared to many other cities, a diverse housing market, and the city's economic dynamics. Dayton offers a range of housing options at various price points, making it an attractive destination for both first-time homebuyers and investors.
Should Buy Investment Properties In Dayton, Ohio?
Investors looking for opportunities in the real estate market often seek cities that offer growth potential, affordability, and a favorable economic climate. Dayton, Ohio, has been gaining attention as a promising destination for real estate investment. Here are some compelling reasons why Dayton's real estate market may be a smart choice for investors in 2023 and 2024:
One of the most significant advantages of investing in Dayton is its affordability. Compared to many major metropolitan areas, Dayton offers lower property prices, making it accessible to a wide range of investors, including first-time buyers and those looking to diversify their portfolios without breaking the bank.
2. Strong Rental Market
Dayton has a robust rental market, driven in part by its diverse economy and the presence of universities and healthcare institutions. Investors can capitalize on a steady demand for rental properties, which can provide a reliable source of income and potential for long-term appreciation.
3. Favorable Economic Environment
Dayton's economy is diverse and stable, with key industries including aerospace, manufacturing, and healthcare. The presence of major employers, such as Wright-Patterson Air Force Base, contributes to a stable job market. A strong economy is often correlated with a healthy real estate market, making Dayton an attractive choice for investors.
4. Low Cost of Living
Investors should consider the overall cost of living in a location, as it can impact the attractiveness of a real estate market. Dayton boasts a cost of living that is lower than the national average, making it an appealing destination for individuals and families, which, in turn, drives housing demand.
5. Potential for Appreciation
While past performance is not indicative of future results, Dayton has seen modest but consistent property value growth in recent years. With its affordability and economic stability, the city has the potential for property appreciation in the coming years, offering investors the opportunity to build equity.
6. Real Estate Development
Dayton has seen ongoing real estate development projects, particularly in its downtown area. These developments can lead to increased property values and improved infrastructure, making it an attractive prospect for real estate investors seeking appreciation and rental income.
7. Proximity to Major Cities
Dayton's location places it within reasonable driving distance of major cities like Cincinnati, Columbus, and Indianapolis. This proximity can attract potential residents and commuters, enhancing the appeal of the city and its real estate market.
8. Diverse Housing Options
Dayton offers a range of housing options, from single-family homes to multi-unit properties. This diversity allows investors to choose properties that align with their investment goals, whether it's cash flow, long-term appreciation, or a mix of both.
9. Favorable Financing Opportunities
Low-interest rates and favorable financing options can make it more cost-effective for investors to acquire properties in Dayton. These conditions can enhance the return on investment and make real estate investment in the area more attractive.
10. Growth Potential
With its affordability, economic stability, and ongoing development projects, Dayton presents significant growth potential. Investors who enter the market in 2023 and 2024 may benefit from the city's long-term expansion and increasing property values.
Investing in real estate carries risks, and it's essential to conduct thorough research, work with local experts, and develop a solid investment strategy. While Dayton offers numerous advantages, it's crucial for investors to align their goals and risk tolerance with the specific opportunities the city provides.
Disclaimer: Real estate markets can fluctuate, and past performance is not indicative of future results. Consult with a financial advisor or real estate professional for personalized investment advice.