Given the swift pace of home sales, competitive pricing, and a notable percentage of sales over list price, the Columbus housing market leans towards being a seller's market. As of the latest data, home prices in Columbus have experienced an increase over the past year, indicating a trend of appreciation rather than a decline.
Central Ohio Housing Report
In March 2024, the Central Ohio housing market continued to showcase resilience and growth, with several key metrics pointing towards a promising spring season for buyers and sellers alike.
Despite a slight year-over-year decrease in closed sales, the median sales price, new listings, and total inventory all exhibited positive trends, according to the latest data provided by Columbus REALTORS®.
Closed Sales: A total of 2,218 closed sales were recorded in the Columbus and Central Ohio Regional MLS in March 2024, representing a modest 3.7 percent decline compared to the same period last year. However, this figure marked a significant 15.8 percent increase from February 2024, indicating a surge in activity as spring approached.
Median Sales Price: The median sales price for homes in central Ohio rose to $310,000 in March 2024, reflecting an impressive 8.4 percent increase year-over-year. This upward trajectory in prices underscores the continued demand for housing in the region.
New Listings: One of the most notable highlights was the increase in new listings, which surged by 10 percent compared to last year. With 10 percent more options available, prospective buyers are poised to find properties that align closely with their preferences and budgetary considerations.
Total Inventory: The total inventory for central Ohio experienced a notable uptick, rising by 18.6 percent year over year to reach 2,754 listings. While this represents a significant expansion of available properties, it's essential to note that inventory levels saw a slight dip of 2.2 percent compared to February 2024, indicating a dynamic market environment.
Insights and Analysis
Market Outlook: Scott Hrabcak, President of Columbus REALTORS®, expressed optimism regarding the upcoming spring selling season, noting that the first quarter of 2024 positioned the market for robust activity in the months ahead. The 3 percent increase in sales compared to the previous year, coupled with a 10 percent rise in new listings, bodes well for both buyers and sellers.
Impact of Mortgage Rates: Mortgage rates, which hovered between 6-7 percent for the first quarter of 2024, may face upward pressure in the coming weeks. Dr. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors, cited recent inflation figures as a potential catalyst for rate increases. This development underscores the urgency for prospective buyers to act swiftly in securing favorable financing options.
Local Highlights: Within the central Ohio market, specific regions demonstrated notable performance metrics. Groveport Madison Local School District witnessed a remarkable 36.6 percent increase in closed sales, signaling heightened activity in the area. Additionally, Grove City and Hilliard experienced year-over-year increases in new listings, further diversifying the inventory available to buyers.
Financing Trends
Conventional Financing: The majority of sales (58 percent) were financed conventionally, reflecting the continued popularity of traditional mortgage products among buyers.
All-Cash Purchases: All-cash purchases accounted for 20 percent of total sales in March, indicating the presence of cash buyers seeking strategic investment opportunities in the market.
FHA, USDA, and VA Loans: FHA loans were utilized in 10.5 percent of purchases, while USDA or VA loans accounted for 6 percent of sales. These government-backed loan programs play a crucial role in expanding access to homeownership for eligible individuals and families.
Is Columbus Ohio a Seller's Real Estate Market?
Columbus, OH is currently experiencing a seller's market in March 2024, with more demand than available inventory. This scenario can lead to competitive bidding and higher selling prices for homeowners.
According to Realtor.com, in March 2024, the median listing home price in Columbus, OH stood at $284.9K, marking a 3.6% year-over-year increase. Understanding the dynamics of the Columbus, OH 2024 housing market is crucial for both buyers and sellers to make informed decisions.
The median listing home price per square foot was $195, reflecting the value of properties in the area. This metric provides insight into the affordability and desirability of homes in Columbus, OH.
Homes in Columbus, OH sold for approximately the asking price on average in March 2024, indicating a balanced market between buyers and sellers. This ratio is an essential indicator of market competitiveness and negotiation power.
The median days on market for homes in Columbus, OH is 24 days. This metric highlights the pace at which properties are being bought and sold, providing insights into market activity and buyer urgency.
The trend for median days on the market in Columbus, OH has shown a slight decrease since last month but has seen a marginal increase compared to the previous year. This trend suggests a dynamic and evolving market landscape, influenced by various factors such as economic conditions and housing supply.
Columbus Ohio Housing Market Forecast for 2024 and 2025
According to data sourced from Zillow, in Columbus, Ohio, the average home value stands at $243,838, indicating a noteworthy increase of 6.9% over the past year. Homes in this region typically go pending in an impressive 5 days. As of March 31, 2024, the market boasts 1,317 homes for sale with 644 new listings, reflecting a vibrant market with a healthy influx of new properties.
The median sale price as of February 29, 2024, was $222,000, while the median list price as of March 31, 2024, reached $261,565. Notably, 35.7% of sales occurred over the list price, underscoring the competitive nature of the market, while 47.6% of sales transpired under the list price.
An Insight into Columbus MSA Housing Market Forecast
Delving into the Columbus Metropolitan Statistical Area (MSA) forecast reveals a promising outlook for the region. This MSA, encompassing various counties in Ohio, including Franklin, Delaware, and Fairfield, constitutes a significant segment of the state's housing market.
The forecast, which provides projections until March 31, 2025, indicates a gradual growth trajectory. With an anticipated 0.6% increase by April 30, 2024, followed by a more substantial rise of 1.4% by June 30, 2024, the market appears poised for sustained expansion in the coming months, culminating in a robust 3% growth by March 31, 2025.
Such projections are instrumental in gauging market sentiment and informing stakeholders about potential trends. The Columbus MSA, characterized by its diverse economy and expansive housing inventory, stands as a pivotal player in the state's real estate landscape. B
As we examine these figures, it becomes evident that the Columbus housing market is not only thriving but also exhibiting resilience amidst broader economic fluctuations. With a steady influx of new listings and consistent appreciation in home values, the region remains an attractive destination for prospective homeowners and investors alike.
Is Columbus a Buyer's or Seller's Housing Market?
In the current landscape of the Columbus housing market, it leans more towards being a seller's market. With limited inventory and high demand, sellers hold the upper hand in negotiations. Homes often receive multiple offers, leading to bidding wars and driving prices up. This scenario poses challenges for buyers, who may need to act swiftly and make competitive offers to secure a property.
Despite the competitive nature of the market, there are currently no indications of significant price drops in the Columbus housing market. The steady appreciation in home values, as evidenced by the 6.9% increase over the past year, suggests a resilient market that continues to attract buyers.
Will the Columbus Housing Market Crash?
While predictions about a housing market crash are often speculative, the current data and forecasts for the Columbus market do not suggest an imminent crash. The gradual growth projected in the MSA forecast indicates a stable trajectory rather than a sudden downturn. However, market conditions can change, influenced by factors such as economic shifts and policy changes.
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 up 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 2024, the median rent for all bedroom counts and property types in Columbus, OH is $1,425. This is -27% lower than the national average. Rent prices for all bedroom counts and property types in Columbus, OH have remained the same in the last month and have decreased by 4% in the last year.
- 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