Ohio’s Housing Market is Seeing a Comeback in Demand and Prices
Ohio’s housing market is looking very strong despite the current coronavirus pandemic, and housing prices and demand are quickly rising as things begin to reopen. Even after enduring a slower summer selling season, Ohio is coming back strong for the tail end of the summer, heading into the school season.
Ohio’s School Season Outlook
Every seasoned real estate agent knows the ebb and flow of the seasonality of real estate and its effects on the industry’s home inventory and activity. What’s important about this change in seasonal activity is how it affects your market. Having a firm understanding of your community and the clientele who inhabit it will determine your success throughout the year.
As we look at this upcoming school year we know there will be differences from years prior due to the coronavirus. What we need to focus on now is how to move forward and recover. Throughout the state, demand for housing is increasing, which in turn is creating a very competitive market.
“It’s so competitive right now,” Amber Simpson, an Ohio resident, said. “Houses in our price range, they’re up for 24 hours, they’re in contract, they’re gone. They disappear.”
As parts of the economy reopen, buyers are coming back. Purchase applications for mortgages rose 11% last week, the fourth weekly increase in a row. But sellers have been more cautious, which is leading to a lack of inventory throughout the state. New listings are down about 40% from this time last year, according to Realtor.com.
Ohio’s School Year Seasonal Effect
Pre-coronavirus, the U.S. residential housing market was strong, particularly in Ohio. The state’s year-over-year home price appreciation for March 2020 was 4.83%, compared to the previous year’s appreciation of 5.85%.
Particularly in Central Ohio, the housing market is very hot, and didn’t take a huge hit from coronavirus quarantining and regulations. Central Ohio’s homes for sale, listed, sold, and pending are reporting strong numbers for the current situation:
The number of Homes For Sale in Ohio June 2020 was 2111 units.
- Down 11.9% compared to May 2020
- Down 42.3% compared to June 2019
The number of Homes Listed in Ohio June 2020 was 3232 units.
- Up 10.2% compared to May 2020
- Down 11.2% compared to June 2019
The number of Homes Closed in Ohio June 2020 was 2847 units.
- Up 20.8% compared to May 2020
- Down 7% compared to June 2019
The number of Homes Placed Under Contract in Ohio June 2020 was 3876 units.
- Up 37.8% compared to May 2020
- Up 26.4% compared to June 2019
What Does This Mean For Ohio’s Real Estate Market?
The housing shortage in the state will continue to create headaches for buyers looking to find a deal on a home. Competition will continue to rise until this inventory is met. Who are the real winners this summer season? Sellers and home builders in the state. Real estate agents should expect to see a change in buyers’ habits, as millennials and city residents begin to look outside of downtown to live.
“We saw a lot of millennials living Downtown in upscale apartments being quarantined who were immediately starting to look for homes. That was going to happen anyway as children came along, but what accelerated that was that restaurants and bars were closed, their workout facilities were closed, they were quarantined at home, maybe two of them forced to work from a dinette table,” said Jack Mautino, President of D.R. Horton’s Columbus division.
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