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Columbus, Ohio Supply of Inventory
Ohio is known for its amazing food, Rock And Roll Hall Of Fame, fantastic amusement parks, and it's the birthplace of aviation. Additionally, Ohio is the birthplace of seven presidents! Like most midwestern states, Ohio is also known for its four-season weather and contains mostly flat or rolling plains. Additionally, waterfront homes on Lake Erie in Ohio make for some of the most desirable midwest properties.
Columbus, the most populated city in Ohio, is an excellent area for real estate and a great place to invest. The Ohio housing market continues to hold strong even with high-interest rates, with average housing prices increasing by almost 8% from November this year since November 2021.
Moreover, there are only 1.3 months of inventory for homes in Columbus, Ohio, as of November 2022, when there is typically between 5-6 months' supply in the average market. And, while that is a 44.4% increase in months supply of homes since the same time last year (when it was at only just under a month), there is still an astronomically short supply of homes in Columbus. Especially when considering the demand for housing in that area.
However, with the rising mortgage rates and far fewer home sales being closed, the Columbus housing market is showing signs of cooling down. Still, with such a short inventory supply and high home prices, a cool-down will likely not happen for the rest of the year and into 2023. Therefore, we predict the housing market will still be a seller's market moving into 2023 and the first quarter of 2023.
November 2021
November 2022
+/- %
Closed Sales
3,018
2,202
-27%
Average Sales Price
$295,723
$319,231
+7.9%
Days on Market Until Sale
17
24
+41.2%
Inventory of Homes for Sale
2,619
3,469
+32.5%
Months Supply of Inventory
0.9
1.3
+44.4%
Percent of Original List Price Received
100.1%
97.0%
-3.1%
Average Price Per Square Foot
$167.67
$178.92
+6.7%
Source: Columbus Realtors
Based on the above statistics, we have made an educated hypothesis on how the housing market will go in the coming months in the Columbus, Ohio, region.
While mortgage rates are high, the demand for housing in the Columbus area is still elevated as the market is almost as undersupplied as last year. As a result, housing prices in Columbus and even some of its surrounding areas will likely stay the same or steadily rise at a much slower rate because of the competitive seller's housing market but high-interest rates.
According to additional market data, the housing market for the whole Ohio area follows similar trends as in Columbus. For example, in November, home sales went down across the whole Ohio area year-over-year, and the average sale prices went up. Some of the most populated counties in Ohio are Cuyahoga, Summit, Hamilton, and Stark county.
Since similar housing market trends are in effect throughout the state of Ohio, the time on the market will continue to increase slowly. Still, we do not expect any sharp decrease in housing prices in the near future in that area. It is no longer the trend for buyers to feel the need to skip inspection or go well beyond the list price in many metro areas, Columbus included. And sellers still often think that the housing market is in the same position as it was in 2021. As a result, it can take longer for a buyer to accept a buy from a seller. So, for now, while buyers can still expect their home to sell in the Columbus area easily, sellers should also not expect interested buyers to put in offers immediately or to get way over the market value price.
Cities near Columbus, Ohio:
*Some of Columbus's surrounding cities and their population include:
Dublin: Pop. 48,647
Bexley: Pop. 13,854
Powell: Pop. 13,309
Hilliard: Pop. 36,414
New Albany: Pop. 10,889
Gahanna: Pop. 35,551
Worthington: Pop. 14,725
The price point of homes for sale is, on average, higher this year in November than in November 2021. However, the small increase in the average sale price of homes in Columbus, Ohio, is still significant. While this isn't an astronomical increase in home prices year-over-year, it is still significant to note that housing prices have continued to go up in a market that was already a competitive seller's market with inflated housing prices and interest rates.
Additional Market Data: We see that houses, on average, are still getting almost the full amount of the original list price when selling, and the average list price per square foot has also increased year-over-year from November 2021 to November 2022.
We predict that the Columbus housing market and its surrounding areas will continue to be a seller's market in the United States going into 2022. However, people are not holding off as they foresee a crash shortly with incredibly high-interest rates. So, we also predict that buyers will start seeing more of an inventory of homes in the Columbus metro area, but we still predict that the real estate activity to continue to grow into 2023.
However, we also predict that limited housing and properties will remain available as the market steadies. Additionally, interested buyers and renters may have to pay more than they are right now for their housing choice when looking in the Columbus area and other neighboring cities in Frankin county, Ohio. These cities include Dublin, Westerville, Grove City, and Reynoldsburg, to name a few.
The Columbus area has always brought in interested investors and homebuyers as it's an area that has a lot of opportunity, recreation, and excitement. Like most metro areas, good real estate is hard to come by in Columbus, Ohio. There are many great areas to invest in when considering the Columbus area, such as Clintonville, The Far West Side, and German Village.
These are just a few nice areas in Columbus that are hot commodities for real estate. Clintonville is a nice, trendy neighborhood. German Village is known for its beautiful antique buildings since being restored. The Italian Village and Victorian Village areas in Columbus, Ohio, are historically beautiful and fascinating locations. Finally, the Far West Side has an incredibly busy real estate market with beautiful outdoor activities and great schools.
Is it A Good Time to Invest in Columbus Real Estate?
Our conclusion? Columbus, Ohio, is a great place for investing in real estate. With so much to offer, there is rarely a time when it isn't a good idea to invest in real estate within the Columbus, Ohio, area if you find the right investment opportunity at a fair price.
In addition, Columbus is home to several arenas and stadiums that host large sporting and other types of events, such as concerts. Many people choose Columbus to relocate to for its beautiful culture, activities, and nice neighborhoods.
Statistics show that Columbus, Ohio has a consistently short supply of real estate, so when an investment opportunity comes up at a fair market price, it is rarely a bad investment. Moreover, with the strong job market and high demand for housing, we predict that investing in real estate within the coming months can still be profitable.
Columbus' real estate market is still incredibly competitive despite high-interest rates. However, it remains a seller's market as there is more demand than supply.
In November, the Columbus housing market had 2011 new listings, an over 23% decrease since the last November. Higher interest rates contribute to homes in Columbus not flying off the market. Still, the low supply of inventory contributes to homes in Columbus, Ohio, flying off the market at an especially fast rate.
For the real estate market to switch to a buyer's market, the inventory needs to increase by several months, and/or new construction needs to increase. Buyer interest is still high, and inventory is still incredibly low. The Columbus housing market could become a buyer's market and will likely remain well into the New Year. Therefore, those looking to purchase real estate in Columbus, Ohio, and its surrounding areas during the upcoming months should consider that it is still a seller's market before submitting an offer.
We are seeing similar real estate trends in the Ohio area. Home sale prices continue to rise, while sale activity has slowed down. However, the demand for housing throughout the Ohio area isn't quite as high as specifically in the Columbus area.
Why are fewer (-27% year-over-year in November 2022) closed sales in Columbus, Ohio, when homes are selling for more than they were on average less year?
Answer: Fewer homes are going on the market. So the demand is still high, but the supply is low. So, therefore, even though homes are staying on the market longer than they were last year, they still are selling at a fast enough rate where the supply of inventory is pretty low.
Houses for sale across Columbus, Ohio, and the surrounding areas are getting fewer multiple offers, and it is less common for them to sell without an inspection. However, with few homes on the market, the Columbus area housing market is still strong. The imbalance of homes available versus interested buyers in the area makes Columbus a hot market and a dream for home sellers.
Therefore, we predict the Columbus area will still be a seller's market going into 2023 and possibly even past the first quarter of 2023.