The Ohio housing market has been a topic of interest for potential buyers, sellers, and investors alike. With the changing economic conditions, it's essential to stay informed about the latest trends and forecasts in the market. In this article, we'll take a closer look at the current state of Ohio's housing market and provide insights into the prices, trends, and forecasts for 2023. Whether you're planning to buy or sell a property or simply interested in tracking the real estate market in Ohio, this article is for you.
Ohio Housing Market Prices & Trends
The Ohio housing market is undergoing shifts in both sales and prices, presenting challenges and opportunities for buyers and sellers alike. This analysis is based on data provided by Ohio REALTORS, shedding light on the current state and future predictions for the housing market in Ohio.
1. Sales and Inventory Trends
In July 2023, the number of homes sold throughout Ohio saw a notable dip compared to the same month the previous year. Home sales reached 11,441, indicating a 19.9% decline from the 14,291 sales recorded in July 2022. This decline can be attributed to a combination of factors, including higher mortgage interest rates and historically low inventory levels of homes available for sale.
2. Price Trends
Despite the decrease in the number of home sales, the average sales price across Ohio experienced a 5.4% increase compared to July 2022. In July 2023, the average sales price reached $287,695, compared to $272,833 in the same month of the previous year. This trend emphasizes that housing is still considered a wise and long-term investment, attracting buyers despite the challenges in the market.
3. Insights from Ohio REALTORS
Commenting on the market dynamics, Ohio REALTORS President Ralph Mantica highlighted the challenges posed by the higher mortgage interest rate environment and the scarcity of available homes for sale. He emphasized that despite these obstacles, the consistent rise in the average sales price underscores consumers' recognition of housing as a prudent, long-term investment. Additionally, he stressed the importance of Ohio REALTORS in guiding buyers and sellers through market uncertainties to achieve their housing goals successfully.
4. Regional Market Variations
Around Ohio, 12 of the 13 markets tracked witnessed an increase in the average price for the month, comparing July 2023 to July 2022. This suggests a widespread upward trend in prices across various regions of the state. Additionally, two local markets demonstrated an increase in sales activity compared to the previous year, indicating regional variations in market dynamics.
5. Forecast for 2023
The Ohio housing market is expected to continue facing challenges due to the higher mortgage interest rates and low inventory levels. However, the consistent rise in average sales prices indicates resilience and demand in the market. It will be crucial for buyers and sellers to adapt and work with professionals like Ohio REALTORS to navigate these challenges successfully.
Ohio Housing Market Forecast: Will it Crash?
Despite record-high mortgage rates, Ohio's real estate market is still among the hottest in the country. As a result of the increased rates, buyers now have a better chance of having their offers approved, although it is still a seller's market. The market is just starting to settle down. It's not like there is a crash coming in Ohio's housing market.
Experts say there are still huge hurdles in the state's housing market, which are already hurting other issues for people seeking to find a place to live, but the demand for houses in Ohio is starting to level off, with a fall in sales and a lesser increase in the average price. Central Ohio is anchored by Columbus, the state capital and the 15th largest city in the country.
As the real estate landscape in Ohio continues to evolve, keeping an eye on market forecasts and trends becomes crucial for potential homebuyers, sellers, and investors. Recent data and projections provide valuable insights into the state's housing market performance and offer a glimpse into what the future might hold. the Ohio housing market and try to predict if a crash is on the horizon.
Current Market Overview
As of August 31, 2023, the average home value (Zillow) in Ohio stands at $218,865, indicating a 3.5% increase over the past year. Homes typically go to pending status in approximately 5 days. Notably, the median sale to list ratio is 1.002, indicating a balanced market where homes are selling very close to their listing prices. Furthermore, 52.5% of sales are happening over the list price, while 32.9% of sales are below the list price. The median days to pending is 5 days.
Top 10 Metropolitan Statistical Areas (MSAs) in Ohio for Highest Home Price Growth by August 2024
Understanding the projected growth in home prices is essential for investors and homebuyers looking to make informed decisions. Let's take a closer look at the top 10 Metropolitan Statistical Areas (MSAs) in Ohio that are anticipated to experience the highest home price growth by August 2024 based on the provided data:
1. Mansfield, OH MSA
In the Mansfield, OH MSA, homebuyers and investors can anticipate a remarkable increase in home prices. From August 31, 2023, to August 31, 2024, home prices are expected to surge by an impressive 7.2%. This substantial growth suggests a flourishing real estate market in Mansfield.
2. Bucyrus, OH MSA
The Bucyrus, OH MSA is also expected to see significant growth in home prices. The forecasted increase stands at 6.3% from August 2023 to August 2024, indicating a robust and attractive real estate market for potential buyers and investors.
3. Springfield, OH MSA
The Springfield, OH MSA is anticipated to experience substantial home price growth, with a forecasted increase of 6.2% by August 2024. This growth signifies a thriving real estate market in the region, presenting investment opportunities.
4. Greenville, OH MSA
Homebuyers and investors in the Greenville, OH MSA can expect a notable increase in home prices, with a forecasted growth of 6.1% from August 2023 to August 2024. This suggests a strong demand for properties in the area.
5. Ashtabula, OH MSA
In the Ashtabula, OH MSA, home prices are projected to see a significant increase, with a growth of 5.8% by August 2024. This growth indicates a healthy and potentially lucrative real estate market for both buyers and sellers.
6. Youngstown, OH MSA
The Youngstown, OH MSA is also forecasted to experience substantial growth in home prices, with a projected increase of 5.7% by August 2024. This suggests a robust real estate market with potential opportunities for investment and homeownership.
7. Van Wert, OH MSA
Van Wert, OH MSA is expected to witness a significant increase in home prices, with a forecasted growth of 5.6% by August 2024. This growth indicates a stable and potentially rewarding real estate market for those looking to buy or invest in properties.
8. Columbus, OH MSA
The Columbus, OH MSA, a prominent area, is projected to experience a notable increase in home prices, with a growth of 5.4% from August 2023 to August 2024. This suggests a flourishing real estate market in the state's capital.
9. Zanesville, OH MSA
Zanesville, OH MSA is also expected to see a significant growth in home prices, with a forecasted increase of 5.4% by August 2024. This indicates a healthy real estate market in the region, making it an attractive destination for potential buyers and investors.
10. Celina, OH MSA
In the Celina, OH MSA, homebuyers and investors can expect a notable increase in home prices, with a forecasted growth of 5.4% by August 2024. This growth signifies a stable and potentially rewarding real estate market, making Celina an attractive location for property investment.
These projections offer valuable insights into potential real estate hotspots for home price growth. However, it's important to remember that real estate markets are influenced by numerous factors. Prospective buyers and investors should conduct thorough research and consult real estate professionals before making decisions in these markets.
Disclaimer: These projections are subject to change based on market conditions. Consult with local experts for accurate and up-to-date information.
Other Factors That Can Impact the Housing Market in Ohio
When the housing market is booming, it is partly caused by job growth and decreases in unemployment. The housing market is inextricably linked to the economy. The health of the economy and job growth affects real estate buyers' purchasing power. As of September 2022, the unemployment rate in Ohio is 3.8% (Not Seasonally Adjusted).
Before the pandemic, in 2019, Ohio's gross domestic product (GDP), the broadest measure of economic production, totaled $698.5 billion, a 3.3% increase from the 2018 total GDP of $675.9 billion. Ohio's 2019 GDP was the 7th largest in the U.S., ranked between Pennsylvania (6th) and New Jersey (8th). Ohio's real GDP grew 5.5 percent at an annual rate in the 4th quarter of 2021.
Ohio's gross state product (GSP) in 2022 reached $620.7b, with a growth of 1.0% over the 5 years to 2022. Businesses in Ohio employed a total of 5,743,338 people in 2022, with average annual employment growth over the past five years of -0.2%. The top three sectors by total employment are Manufacturing, Real Estate, Rental and Leasing, Finance, and Insurance, while the unemployment rate across the state in 2022 was 4.2%.
More people require housing as the population grows. This means that, in the long run, population growth drives increased demand for housing and, as a result, a strong real estate market. Population growth has a positive impact on the housing market. Ohio is constantly growing and according to the United States Census Bureau. The state of Ohio has a population of 11,802,444, having grown an annualized 0.2% over the five years to 2022, which ranks it 38th out of all 50 US states by growth rate.
Sources:
- https://www.ohiorealtors.org/home-sales-news-release/
- https://www.zillow.com/home-values/44/oh/
- https://fred.stlouisfed.org/series/OHSTHPI#
- https://www.neighborhoodscout.com/oh/real-estate
- https://www.ibisworld.com/united-states/economic-profiles/ohio/
- https://www.lsc.ohio.gov/documents/reference/current/ohiofacts/2020/Economy.pdf
