Are You Ready for Ohio’s 2021 Real Estate Market?
Like all of us, Ohio was affected by the pandemic, but the Buckeye State and its residents have shown their resilience and adaptability once again. Stay-at-home life settled in as residents focused on gaining more space. Record-low interest rates inspired a wave of buyers to hit the market, leaning the market in sellers’s favor. Active summer and fall selling seasons resulted in an average 7.6% increase in home price over last year. So, you’re likely wondering: What will 2021 bring for Ohio real estate agents?
2021 Ohio Real Estate Outlook: Hot
Ohio’s relatively low cost of living is one of the most attractive qualities the state has to offer. The median home price is $156,343, more than $100,000 less than the national average. This low cost in conjunction with low monthly mortgage costs record-low mortgage rates make owning a home in Ohio both easy and attractive to both current and prospective residents. For those interested in renting, the average rent in Ohio is $802, which is about $200 cheaper than the national average.
The home price growth year-over-year is 8.8% with a projected increase of 10.4% over the next year. Throughout the country, home values are rising as home equity reached record highs in 2020. These gains in home equity are projected to continue rising as homeowner demand drives home prices up. Ohio has a low number of homes with negative equity; at 3.6%, the Buckeye State ranks as “moderate” when compared to the negative equity of other states. Home equity is important for homeowners to have a buffer to protect their families in case of emergencies.
Thanks to Ohio’s low unemployment rate, the number of homeowners who are late on mortgage payments has remained low, especially when compared to the rest of the country. This could change in the new year as COVID-19 relief and suspended home foreclosures for federally backed loans ended in 2020.
2020 Ohio Real Estate Market Data
|Zillow Home Value Index||$164,968|
|1-Year Change on Home Values||+8.8|
|1-Year Change on Rent Prices||+2.0%|
|Homes With Negative Equity||3.6%|
|Delinquent on Mortgages||0.9%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Ohio
The unemployment rate is currently below the national average of 6.7%; the Ohio Department of Job and Family Services reported that the unemployment rate fell to 5.7% in December 2020. The majority of these jobs are nonagricultural and salaried employment opportunities, and over 29,400 jobs were added just last month. Ohio has one of the most robust economies in the country with 25 Fortune 500 companies calling it home. The largest employers include Wal-Mart, Kroger, the Cleveland Clinic, Ohio State University, and Mercy Health.
Ohio has been a sleeping dragon over the last decade that is now being woken up by big tech. The low cost of living and lower-than-average cost of doing business makes Ohio an appealing state for both companies and their employees. Short commutes, top-rated universities, and recreational opportunities have made it a premier relocation destination, especially as work-from-home jobs become the standard. So, how does Ohio compare to the rest of the nation?
- Second in quality of life
- Seventh in job opportunity
- Twenty-second in economic climate
- Twenty-seventh in infrastructure
Homeowners are realizing that they have the choice to live outside of urban developments and still work for great companies. With its massive strides in home sales and home sale prices, Ohio is a real estate market in high demand.
As we enter 2021, real estate agents throughout the state should be ready to meet the consumers’s demand in homes that can meet their needs, especially for homeowners who plan to work-from-home.
Take On 2021 With the Best Ohio Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow residents with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything in Ohio? Join the Mid-Western Real Estate Facebook Group!