The Akron housing market in 2024 is a story of opportunity for sellers and a market moving at a brisk pace. Here's a deep dive into the current trends and what they mean for you:
Affordability and Buyer Demand
- Impact on Prices: With more buyers in the market chasing a limited inventory, home prices have seen a significant rise. As of April 2024, the median sale price sits around $143,800, reflecting a year-over-year increase (Movoto).
- Fewer Listings: Compared to 2023, there are fewer homes available for purchase. This low inventory further strengthens the seller's position.
Speed of Sales and Competition
- Faster Transactions: Homes are selling quicker in 2024 compared to last year. The average time a property stays on the market is around 22 days, indicating a fast-paced environment.
- Multiple Offers: Akron's competitive market often sees properties receiving multiple offers. This gives sellers leverage in negotiations and potentially drives the final sale price higher.
Akron Housing Market Predictions for 2024 and 2025
The average Akron home value stands at $126,631, marking an increase of 9.4% over the past year. Properties in Akron typically go pending within approximately 9 days, indicating a brisk market activity (Zillow).
The housing market as of March 2024 reveals some interesting trends:
- Median Sale Price: The median sale price as of February 29, 2024, stands at $113,417, indicating the typical price at which properties are being sold.
- Median List Price: On the other hand, the median list price by March 31, 2024, is notably higher at $129,633. This suggests a disparity between the prices at which properties are listed and those at which they are ultimately sold.
- Market Dynamics: With 30.1% of sales occurring over the list price and 57.8% under the list price as of February 29, 2024, it's evident that there is significant variability in pricing strategies and negotiation outcomes in the current housing market.
This graph illustrates the growth of home values in the region over the past year, along with a forecast suggesting this trend will likely continue for the next year.
The housing market forecast for the Akron Metropolitan Statistical Area (MSA) in Ohio also shows promising growth over the coming months and into the next year. Based on the data available as of March 31, 2024, the forecast predicts a gradual increase in housing prices and activity.
- Modest Price Appreciation: From April 30, 2024, to June 30, 2024, the forecast indicates a growth rate of 0.8%, suggesting a modest but steady upward trajectory in the market. This trend is expected to gain momentum, with the forecast projecting a growth rate of 1.7% by the end of June 2024.
- Inventory Levels: While inventory remains lower compared to previous years, a slight increase is possible. This could create a more balanced market, with less intense competition for buyers.
- Interest Rates: Rising interest rates are a potential factor that could impact affordability and buyer demand. It's important to stay updated on any changes in this area.
Overall, the Akron housing market is expected to remain favorable for sellers in 2024 and 2025, but with a potential shift towards a more balanced market in the future.
Should You Invest in the Akron Real Estate Market?
Investing in the real estate market is a significant decision that requires a thorough analysis of various factors. When it comes to the Akron real estate market, several data and statistics play a crucial role in understanding its investment potential. Let's examine these factors and their potential impact on the Akron real estate market:
1. Population Growth Trends
The population growth trends in Akron are a key consideration for real estate investors. As of the latest available data, understanding whether the population is growing, stable, or declining is crucial. Population growth can drive demand for housing, impacting property values and rental income.
In Akron, it's important to note that population trends have been relatively stable in recent years. While not experiencing explosive growth, a stable population can provide a reliable and steady demand for housing, making it a suitable choice for long-term real estate investors.
2. Local Economy
The local economy plays a vital role in the health of the real estate market. A strong and diverse economy often attracts businesses and residents, positively affecting the housing market. In Akron, there are several noteworthy factors to consider:
- Employment Opportunities: Akron's economy benefits from the presence of major companies, including FirstEnergy, Goodyear Tire & Rubber, and PPG Industries. The stability of these companies can provide a reliable source of jobs for residents.
- Diversification: A diverse economy with a mix of industries can enhance the resilience of the real estate market. Akron's economic diversification includes manufacturing, healthcare, and education sectors.
These economic factors suggest that Akron's economy can have a positive impact on the real estate market, as it attracts both homeowners and renters due to job opportunities and stability.
3. Jobs and Employment
The availability of jobs and employment rates in Akron directly affect the housing market. Investors should consider the following job-related factors:
- Unemployment Rate: A low unemployment rate typically indicates a healthy job market and can stimulate housing demand.
- Job Diversity: A mix of job sectors can create a diverse tenant pool, reducing the risk associated with economic downturns in specific industries.
Overall, Akron's job market has remained relatively stable, with a mix of employment opportunities across multiple sectors, further supporting the real estate market's health.
4. Rental Market
For investors interested in rental properties, the rental market's condition is a critical factor. Data and statistics related to the rental market include:
- Rental Demand: Analyzing rental demand in Akron is essential. Factors such as a growing job market and a stable population can increase the demand for rental properties.
- Rental Rates: Understanding rental rates and their trends can help investors determine potential rental income. Akron's rental rates should be compared to property acquisition costs for profitability assessments.
Additionally, it's worth considering local regulations and landlord-tenant laws that may impact the rental market in Akron. Staying informed about these regulations is crucial for property management.
5. Property Taxes and Investment Incentives
Property taxes can significantly impact the return on investment for real estate properties. Investigate Akron's property tax rates and any potential incentives or tax breaks for real estate investors. Lower property taxes or investment incentives can improve your investment's overall profitability.
6. Infrastructure and Development
Investment in infrastructure and development projects, such as transportation, schools, and public amenities, can influence property values. Areas with planned improvements may experience increased demand and appreciation in property values.
7. Market Sentiment
Local market sentiment and investor confidence can impact real estate prices. Monitoring the perception of Akron's real estate market among professionals and the community can provide insight into future trends.
Investing in the Akron real estate market can be a favorable option, especially for those looking for stable and potentially profitable opportunities. The city's stable population, diverse economy, and job opportunities make it an attractive choice. However, as with any real estate investment, thorough research, due diligence, and consideration of all the factors mentioned above are essential to make informed and successful investment decisions.