Rising interest rates have slowed buyer demand in Ohio’s property market. More houses are being posted for sale, which is good news for the housing market and purchasers. The market will slow down as inventory rises and homes take longer to sell.
Ohio REALTORS reported a 15% drop in house sales in September, although average sales prices rose. 13,785 residences sold in September 2022, down 15% from 16,214 in September 2021. Ohio’s average sales price rose 7.1% from September 2021’s $242,877 to September 2022’s $260,232.
Furthermore
Twelve of the state’s fourteen monitored marketplaces had higher average prices than September 2021. Two local markets had higher sales than last year. 117,999 homes were sold in the first nine months of 2022, down 5.4% from 124,700 in 2021. The 2022 year-to-date average sales price is $261,049, up 9.2% from 2021’s $239,091.
Ohio Housing Market Forecast: Crash?
Ohio’s real estate market is one of the nation’s hottest despite record-high borrowing rates. Although it’s still a seller’s market, higher rates provide buyers a better chance of getting their offers accepted. Markets are stabilizing. Ohio’s housing market won’t collapse.
Experts believe there are still enormous challenges in the state’s housing market, which are already harming other concerns for those looking for a place to live, but Ohio’s housing demand is starting to level down, with sales falling and the average price rising less. Columbus, Ohio’s capital and 15th largest city, anchors central Ohio.
Due to prolonged market times, property prices are falling. “If you’re wanting to buy, yeah, this is a terrific moment,” despite little supply. This year’s Columbus home market averaged $334,000 in April and $331,000 in September. Over five months, it dropped approximately 1%.
As of September 30, 2022, Ohio homes average $216,746 on Zillow. Ohio home values rose 12.3% last year.
1.013 Median sale-to-list ratio (August 31, 2022)
57.0% Sales over list price (August 31, 2022)
28.9% Underlist sales. (August 31, 2022)
The 3 Big C’s
In Columbus, Cincinnati, and Cleveland, where housing is always in demand, investing in Ohio real estate is smart. The median price in Ohio rose 18.41% in the past year, according to Neighborhoodscout. 2022 Q4-Q2 appreciation rate was 6.69%. Prices rose 32.85% in two years and 53.99% in five.
Ohio All-Transactions FHFA House Price Index (Quarterly)
The FHFA HPI is the only publicly available index that tracks single-family home values in all 50 states and over 400 American communities since the mid-1970s. The second-quarter 2022 FHFA HPI in Ohio is 420.23, up 18.4% from last year.
Q2 2022: 420.23
Q1 2022: 393.87
Q4 2021: 382.08
Q3 2021: 373.09 Q2 2021: 354.89
Forecast
Here is a forecast from Zillow for a few Ohio urban areas. Between September 2022 and September 2023, home price rise is anticipated in 40 of Ohio’s 46 metro areas. In 2023, property prices are only anticipated to drop in 5 metro areas. Ohio’s housing market is still skewed toward sellers, as seen by rising listing prices and home values as well as a low supply.
Unless inventory increases faster than demand or rising interest rates significantly reduce demand, this pattern is likely to remain for the foreseeable future. Having said that, the home price rise in the Ohio real estate market will slow down in 2023 and most likely in 2024 as well, just like it will everywhere else.
Top Ohio Markets to Experience the Greatest Price Growth in 2023
The home values in Wooster, Ohio are anticipated to increase 13.2% between September 2022 and September 2023.
Home values in Zanesville, Ohio are anticipated to increase 3.8% between September 2022 and September 2023.
Home values in Youngstown, Ohio are anticipated to increase 3.6% between September 2022 and September 2023.
The home values in Mount Vernon, Ohio are anticipated to increase 3.6% between September 2022 and September 2023.
Home values in Mansfield, Ohio are anticipated to increase 3.4% between September 2022 and September 2023.
Home values in Columbus, Ohio are predicted to increase 2.7% between September 2022 and September 2023.
The home values in Cincinnati, Ohio are anticipated to increase 2.3% between September 2022 and September 2023.
Home values in Lima, Ohio are predicted to increase 2.7% between September 2022 and September 2023.
Home values in Wilmington, Ohio are anticipated to increase 2.2% between September 2022 and September 2023.
The home values in Dayton, Ohio are predicted to increase 2.1% between September 2022 and September 2023.
DCAuthorityLinks