Anyone working in the financial services or real estate industry understands that market conditions constantly fluctuate. Interest rates rise and fall daily, the stock market soars on Monday but drops like a rock on Tuesday, and the cost of goods and services rides the wave of supply and demand.
The state of the real estate market directly affects your livelihood and your ability to sell homes. So, to be successful, it pays (literally) to stay ahead of any potential trends, be prepared to refute any of your clients’ reservations about buying or selling and have answers to questions about the market that you’re sure to get from prospective clients or even family and friends.
Our job is to help you. We’re in the same boat you are, rowing in the same direction. We do our best to stay updated on what’s happening – and what could happen – in the real estate industry. It’s vital to our success, but it’s also so we can pass along our knowledge to partners like you.
So, what’s happening in the Ohio real estate market as we head toward the end of 2022? We summarize some of the current market conditions by answering three questions below.
Is it a buyer’s or seller’s market in Ohio?
Could the answer be both?
Because investing in real estate is almost always a good idea, we could say we’re in a buyers’ market right now. And when you consider that home inventory is slowly rising, and some sellers in some parts of the state are reducing prices, that’s more evidence.
According to Ohio REALTORS data, the number of properties sold in September 2022 was 15 percent lower than last year’s. The number of homes sold this September was 13,785, down from the 16,214 sales recorded in September 2021.
So, who has the advantage if the inventory is there but not as many homes are selling? The buyers.
However, according to those same reports from Ohio REALTORS, many experts consider Ohio a seller’s market. Why?
Rising interest rates, for one. The rising inventory is great for buyers, but when interest rates are at or above 7 percent like they are now, they are forced to pay more for a home than they could have last year when rates were less than half of what they are now.
While dropping slightly in some parts of the state, Ohio home values are still near historic highs. That’s another sign that we’re in a seller’s market. Even if they end up reducing the price of their home to entice buyers to pull the trigger, they’re still making a healthy profit. And that’s even the case without receiving floods of offers and using bidding wars to their advantage.
The average sales price in Ohio rose by 7.1 percent to $260,232. That’s up from $242,877 in September 2021.
So, there’s evidence on both sides of the buyers vs. seller’s market. One interpretation is that the market is slowly stabilizing and could return to a more balanced state as we turn our calendars to 2023. But stay tuned – you know how quickly things can change.
Is Ohio a good place for real estate investing?
Investing in Ohio real estate is smart, especially in larger cities like Columbus, Cincinnati, and Cleveland, where housing is always in high demand. According to Neighborhood Scout, an online database of U.S. neighborhood analytics, the Ohio real estate Appreciation Rate between 2021 Q2 and 2022 Q2 (12 months) was among the highest in the country as the median price rose 18.41 percent.
The appreciation rate was 6.69 percent between 2022 Q4 and 2022 Q2. Prices have risen by 32.85 percent in the last two years and 53.99 percent over the previous five years.
So, despite high interest rates and home prices, real estate investing in Ohio is lucrative. Your buyers’ homes will hold long-term value, and when property values rise even further in the future, they’ll be happy they bought now.
What does 2023 look like?
As you know, the state of the market can fluctuate from region to region – even within the same state. Looking ahead to what could happen in 2023 will allow you to get a jumpstart on your sales strategy and approach.
One significant indicator to consider is home price. With high interest rates and soaring inflation keeping some buyers out of the market, home prices could be the deciding factor for some of your clients.
A recent Zillow forecast showed some home price growth data worth considering. It’s expected that 40 out of 46 metros in Ohio will have a home price growth between September 2022 to September 2023. That includes the Youngstown metro, which is expected to see a 3.6 percent increase in home prices.
What does this mean? Rising home values and listing prices, combined with still limited inventory, indicate that Ohio’s housing market may still be tilted toward sellers as we start 2023.
This trend could change only if inventory grows faster than demand or rising interest rates ultimately dampens the demand to a great extent.
Equal Housing Lender
A division of Amerifirst Financial Corporation
Not intended as legal or financial advice. Consult your own professional.
LePard, C. (2022, September 21). After surging real estate market, cooldown underway with Northeast Ohio home sales. News 5 Cleveland WEWS. Retrieved November 11, 2022, from https://www.news5cleveland.com/news/local-news/after-surging-real-estate-market-cooldown-underway-with-northeast-ohio-home-sales
Home sales news release. Ohio REALTORS. (n.d.). Retrieved November 11, 2022, from https://www.ohiorealtors.org/home-sales-news-release/
Santarelli, M. (2022, October 31). Ohio Housing Market Forecast 2022 & 2023. Norada Real Estate Investments. Retrieved November 11, 2022, from https://www.noradarealestate.com/blog/ohio-housing-market/