In the last two years in Central Ohio, we have seen home prices continue to climb and interest rates remain relatively stable and overall very low.
Combine that with the low inventory levels we have experienced and viola you have a seller’s market! If you haven’t been in the market recently, most homes are receiving multiple offers with some even receiving more than 10 offers! Many of these offers include “no inspections and no warranties” clauses (which I would never normally advise). When it comes down to it, buyers are willing to take some risks to win the home and sometimes that’s what it takes to beat out other buyers. Other tactics that have become popular are to include a “love letter” to the sellers with pictures of the buyers or to offer to go X dollars over the appraised value and perhaps make up the difference should the property not appraise at the agreed upon purchase price. Crazy, right!?! Well this is the world of real estate right now…great if you are a seller, challenging if you are a buyer. We are finding this holds true for homes priced under $350k. If you are looking over that price point, then there tends to be more inventory and less competition for those homes.
So, what does the future hold? Based on my reading and reviewing all the graphs, indicators, and projections, here is where I think Central Ohio stands. Interest rates are slowly climbing back up and there are two groups that will be making up the majority of the home purchases: the baby boomers and the millennials.
The boomers are downsizing and so that is why we see so many condo and patio home communities being built. They seem like they are building them everywhere!
Due to social media and the availability of information at your fingertips, the millennials are choosing to move to where they can get the best bang for their buck – where they can succeed the fastest and feel safest – which is making a large number move to the Midwest. With increasingly high student loans, this group has to find the most affordable markets. Guess what city is on their mind? Columbus, Ohio! We are a young, fresh, innovative city, with amazing suburbs, schools, parks, a #1 Zoo, a beautiful downtown, a great economy, much love for both sports and the arts, and we have The Ohio State University! Nationally speaking, Columbus has been ranked as the #6 city to move to in the country…impressive, right?
I love Columbus and its surrounding cities and little country towns. We live in a great home town and I am excited to see where we go from here!
— Nikki Gallo, Buyer’s Agent
Ryan Reynolds Team, LLC
Source: Realtor.com The 5 Real Estate Trends That Will Shape 2017
Source: Realtor.com America’s Hottest Real Estate Markets May 2017
Source: Forbes Homes in the Best Cities to Buy Housing 2017