A new study by NerdWallet places Ohio at the top of the list for home affordability, with several Ohio cities ranking in the Top 100 Most Affordable Metros.
The study compared information on household debt, median income, housing costs and home prices.It also ranked affordability by comparing local median incomes against the cost of homes per square foot.
Here’s how Ohio cities ranked in affordability, out of 100 U.S. metros:
- Columbus #11
- Toledo #8
- Cincinnati #7
- Akron #5
- Dayton #3
Rising home prices have nudged Columbus real estate out of bargain territory, but sales activity has been robust, and is expected to hold momentum. An article in the Columbus Business Journal notes that August home sales increased by 10.3% in metro Columbus, compared to sales during the same period a year ago. Average home sales prices have also increased, while homes are spending fewer days on market.
Optimism for future Columbus home sales is evidenced by the Nationwide Mutual Insurance Company’s “Health of Housing Markets” report, which forecasts home sales for the upcoming year. The report gives the Columbus area a strong +2 ranking, out of a possible high score of +4. The report considers employment, population demographics, mortgage markets and housing prices.
Central Ohio has fared well in housing market studies throughout 2015. Earlier in the year, RealtyTrac placed Columbus among the 10 Best Markets for First-Time Home Buyers, based on an analysis of home sales and mortgage loans. In August, The Huffington Post named Columbus in the Top 10 of up-and-coming housing markets in the U.S.
Right now, we are experiencing a “fall cooldown” in buyer demand. A number of the hyper-local “hot” neighborhoods that experienced multiple bidding wars have calmed down, with market activity returning to normal levels.
This fall and winter may be the last great opportunity to purchase a Columbus home for a very good value, while we have stable demand and supply, and very favorable interest rates. The days of bargain mortgage rates below 4% are ending, and analysts project that interest rates will soon climb into the mid- 4’s or higher.
Here’s why even a small rise in interest rates matters. Every 1/8th of an interest rate point is 8 cents per month, on each $1,000 borrowed for 30 years. Meaning, a $200,000 loan that goes up ¼% will cost an extra $32 more per month. When that same interest rate change is considered in mortgage qualifying, it decreases a buyer’s purchase ability by about $7,000 for the same payment level.
Remember, the Central Ohio real estate market is always changing, and any rise mortgage interest rates can affect your purchase power. Having expert guidance is the best way to succeed! We help our Buyer-Clients throughout the entire home buying process.
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
