With a statewide average cost of living that falls below the national average, Ohio is an attractive state to people who are looking to relocate. Housing is one of the biggest factors in the cost of living difference. However, now is the time to consider buying if you are thinking of moving to Ohio or already live here and want to buy your first home. Real estate prices are slowly rising and are expected to continue on an upward trend throughout 2017.
Interest Rate Increases
Interest rates increased for all Americans who were buying new homes around the end of 2016 as a new president and administration were ushered in. Since the election, rates have climbed .4 percentage points. Financial experts said that interest rates are expected to continue rising through 2017 and beyond. While the rates are not expected to climb to staggering numbers similar to those in the 1980s, they will be higher than the historically low rates of the last several years.
Millennial buyers are expected to be affected the most by this change as they are one of the largest groups purchasing homes today. Since about 95 percent of all home buyers require financing to make a purchase, this pushes a considerable portion of shoppers out of the market in many areas. However, buyers who are pushed out of the market in bigger cities may find parts of Ohio appealing with lower average sale prices and what appears to be a recovering economy. The entire Midwest is expected to see an average sale price increase since trends show Millennial buyers choosing this region more than they have in the past several years.
Home Price Increases
As more people realize the benefits of living in Ohio, houses are in higher demand. One of the most popular regions is Central Ohio. Realtors in that region reported median sale prices in the first quarter of $199,000. In comparison with the median sale prices of the same quarter in 2016, this number showed a surprising 8.1 percent increase. This was a record jump for the area. Although prices are expected to stagnate or grow slowly for most of the United States, prices are expected to steadily climb in Ohio and especially in Central Ohio.
Supply And Demand
Sales for Central Ohio have increased nearly 60 percent since 2011 after the worst of the Great Recession passed. At the end of 2016, there were fewer than 5,000 homes on the market in this region, which was a decrease of more than 25 percent from the previous year at the same time. This drop in availability is also a historic record for Central Ohio.
In certain Ohio cities, homes are selling fast enough that the market of available homes is shrinking drastically. Since American job growth is expected to increase in the next several years, Midwest construction companies are building new homes in many cities including multiple Ohio cities. New Albany is one example. A residential construction company is planning to create a large community of 240 new homes to meet the rising real estate demands there.
What This Means For Buyers
For some buyers who were already considering Ohio but do not have perfect credit, the interest and pricing shift could mean planning for a smaller home or a home in a different area of Ohio. However, buyers who may not qualify for homes in more expensive states and cities now may still find that Central Ohio or other parts of the state are much more affordable. If buying is possible, now is a good time before prices rise further.
What This Means For Sellers
Anyone who is considering selling may call 2017 their lucky year. In the past, selling may have meant making little to nothing or coming up short in some cases. With the increasing demand for real estate and the ensuing rising sale prices, it is a good time to make some extra money from a sale. Those who have been waiting to make a profit and upgrade to their dream house may just be able to do that depending on where they live, how much of their mortgage is paid off and the condition of the home.
About The Author
Tammy Mazzocco is passionate about helping people find ideal homes, and she especially enjoys helping first-time home buyers achieve their goals. As a leading real estate agent in Columbus, Tammy enjoys showing both Ohio natives and out-of-state residents who are considering relocating just how much there is to love about living in Ohio. When she was first exposed to real estate, Tammy Mazzocco worked as a secretary for a realty company. Tammy loved the field and wanted to delve deeper.
She eventually worked as an assistant for a top RE/MAX producer named Joe Armeni. He served as a trainer and mentor to Tammy as she pursued her dream of becoming an agent. She worked with and was mentored by Judy Gang as well. Tammy Mazzocco attributes her success to her selfless mentors and her dedication to treating the valuable time of her clients as she would treat her own. In addition to spending time meticulously helping clients find the right homes, Tammy loves to drop by local firehouses and similar community organizations to show her support by spoiling them with gift baskets of goodies.