What is in the Forecast for the Columbus Real Estate Market?
If you are looking to buy or sell a home in Columbus in 2024 you will probably be interested in some insight as to where the market is expected to head in the next few months to help you navigate and plan for the purchase or sale of your home.
Real estate market forecast for Columbus Ohio
Real estate in the last year in Columbus was a hot market similar to many other locations around the United States. Many people are looking to purchase a home or relocate to Columbus as it is a highly desirable area to live in. The market did present some challenges, especially to Columbus homebuyers purchasing their first home.
About a year ago, the mid-Ohio Regional Planning Commission reported that the growth of the area placed central Ohio as one of the fastest-growing large metropolitan areas in the country.
There has been a shift in the real estate market trends from last year especially in the balance of supply versus demand that has been influenced by factors from local economic numbers. Columbus has been forecasted to be one of the hottest real estate markets in the country in 2024. This is because homes are selling quickly and are expected to sell at an even more rapid pace as the year goes on with a healthy demand from Columbus homebuyers.
There was a lot of shifting in the real estate market in Columbus in 2023 with several improvements to market factors. There have been many newly approved construction permits for single-family housing and multi-family housing. The numbers of these permits are higher than what was forecasted by the US Census Bureau. The permit activity for new construction of homes increased from 273 permits last January to 446 approved permits in September 2023. The number of permits filed in January 2023 was the lowest since February 2019.
The Building Industry Association of Central Ohio shared data in a report stating that Central Ohio's population is expected to grow and housing permits needed to increase twice as much from current numbers to help meet what was seen as a project in need of more than 100,000 new homes in the next decade.
The supply and demand of Columbus homes
The housing supply in Columbus is increasing but it is not enough to create a balanced market. Numbers from 2023 showed that the biggest increase was a 2.9-month supply in November which is still well below the six-month supply needed to become a balanced market. The increase in housing permits is hopeful to also help increase the supply of homes and ease some of the tension on homebuyers for finding their perfect Columbus home.
Increase in mortgage applications
Even though mortgage rates took a slight Increase at the very beginning of 2024 the Mortgage Banker Association shared that mortgage applications increased after the holidays. On January 10 they reported an increase of 6% when compared to the previous week.
The median home price for Columbus
The median home price for Columbus homes has increased significantly in the last handful of years. The median home price in September 2023 for Columbus was $330,000 which showed a 6.5% year-over-year increase in prices. However, this is still relatively affordable as compared to the nationwide median price of $412,000.
Columbus builder confidence
The builder confidence rate has had some fluctuations in Columbus with material cost and economic uncertainty. The Columbus metro area was rated 37 out of 100 and October 2023 and this rating stayed the same year over a year. Scores above 50 are looked at as a positive outlook.
What experts believe is on the horizon for Columbus real estate
Even though Columbus has a low builder confidence score it is still expected that the number of new construction permits will increase in the next few months. Columbus's population is growing and the need for new homes is growing as well. Affordability concerns are easing a bit as home prices are not increasing at the crazy rates they once were and mortgage rates are slowly coming down. This is expected to bring more homebuyers back into the Columbus market. Columbus is predicted to be one of the hottest housing markets in America in 2024. There will still be challenges to finding a home in a seller's market and with the help of an expert local agent, you can find your ideal Columbus home.
If you are planning to buy or sell a home in Columbus I am here to help. Contact me anytime with any Columbus real estate needs.