Ohio Real Estate Market Forecast 2023

Ohio Real Estate Market Forecast 2023

  • Wendy Dickson
  • 07/2/23
 
Ohio residents enjoy a high quality of living thanks to the numerous amenities available. In addition to being home to one of the most prominent universities in the country — The Ohio State University — the state boasts eight public universities and dozens of private and community and technical colleges. With the number of Ohio schools available and education a priority, job growth and opportunities continue to make Ohio an attractive state to live, work, and play.

Home to the Rock and Roll Hall of Fame, professional baseball, soccer, basketball, and football teams, and numerous college athletics, Ohio also has several arenas, concert halls, and outdoor music centers. In addition to plenty of upscale shopping, an abundance of breweries, and memorable fine dining establishments, these entertainment opportunities make Ohio real estate highly desirable.

The housing market in Ohio

As is true around the country, pending home sales remain steady, and current home sales in the United States were down as of April 2023. These statistics are primarily due to the rise in interest rates, which keep buyers from making moves and discourage sellers from placing their homes on the market, especially if they currently have a mortgage with a low interest rate.

Specifically, regarding the Ohio housing market, the state saw the number of homes sold drop by 25.3% from May 2022 to April 2023. On the plus side, the median sale price of homes in Ohio increased to 4.9% from May 2022 to April 2023.

Economic factors affecting the real estate market

According to Forbes, the market stagnated in May due to the increasing mortgage rates and higher home prices. There are also several economic factors influencing the current market. These include the ongoing recession fears, government activity surrounding the debt ceiling, and the continued bank sector instability.

While just one of these factors does not necessarily impact mortgage rates, when taken as a whole, the overall effect can sway what the banks offer for mortgage rates to their customers. One of the most significant effects on the interest rates is the Federal Reserve. In early May, the Federal Reserve raised the rate fairly aggressively to try and control inflation concerns, indirectly influencing 30-year, fixed-rate mortgages.

Look at Cleveland, Ohio, for example. The inventory is stubbornly low, but the median average price for a home continues to rise. For instance, the year-over-year median sales price rose 8.8% to $174,000. This statistic is excellent news for sellers but continues challenging buyers, particularly first-time homebuyers who may need a larger down payment to keep their monthly mortgage payments reasonable. Because of price increases, many buyers are priced out of their preferred homes and neighborhoods.

While the prices continue to rise and the demand for homes is greater than the availability, the number of homes sold has decreased. The year-over-year number of homes sold in Cleveland dropped a staggering 30% to 1,022 homes. Fewer buyers are willing to pay more for a home and at an increased mortgage rate, preferring to stay on the sidelines and wait for the housing market to shift.

Moving to Ohio

While all of these economic factors can become overwhelming, Ohio remains one of the most cost-effective states in the country. The cost of living in Ohio ranks number 19 in the country, and the state ranks number 14 in housing affordability.

When looking for Ohio homes for sale, it is essential to consider the quality and number of Fortune 500 companies that make Ohio their home. Corporations such as The Kroger Company, Nationwide Mutual Insurance Company, Procter & Gamble, Sherwin-Williams, Progressive Corporation, Goodyear Tire & Rubber Company, and more provide a stable economic environment and solid job growth.

Parks and recreation in Ohio

The abundance of outdoor spaces, parks, and recreational opportunities allows residents to find plenty of activities to engage in outdoors. For instance, you can visit the Dayton Aviation Heritage National Historical Park in Dayton, Ohio. Here you can learn more about the global impact of flight and how the persistence and fortitude of the inventors enabled them to overcome obstacles and forever immortalize themselves in history.

In the Cleveland area, residents enjoy the spectacular forests, open farmlands, and rolling hills of the Cuyahoga Valley National Park. Hop on your bike or lace up your hiking shoes to discover local wildlife and plants indigenous to the area. Be sure to meander through the numerous available trails and routes, some following the historic Ohio and Erie Canal, the Cuyahoga River, and the Towpath Trail.

When living in Ohio, you can take advantage of several recreational activities. Head to Cedar Point in Sandusky, Ohio, for a day of mind-blowing rollercoasters and plenty of entertainment, food, and shopping the entire family will enjoy. Or go to downtown Cleveland for beautiful waterfront views of Lake Erie. Whether you are looking for a fun night out enjoying a concert at the Music Box Supper Club, where you can listen to live music most weekends while taking in a spectacular view of Lake Erie, or you want to satisfy your craving for Mexican food at Nuevo Modern Mexican & Tequila Bar while enjoying their outdoor patio and amazing views of the Cleveland waterfront, you can find it all in Ohio.

When looking for Ohio homes, contact Wendy Poltorek Dickson of CPD Homes. Her expertise in luxury real estate, expert negotiation skills, and abundant market knowledge ensure you will find the perfect home for you and your family. Her dedication, established over ten years in the real estate business, focuses on community, pride, and development. Reach Wendy anytime to jumpstart your home search in Ohio.

*Header photo courtesy of Shutterstock



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