The Central Ohio real estate market set a new median high for home prices during May 2023, reaching $320,000. According to Ohio REALTORS©, this is the highest median home price posted during any month on record.
Central Ohio home buyers are feeling a double squeeze of higher home prices and higher mortgage interest rates. As of June 28, 2023, the average interest rate for a 30-year fixed rate mortgage was 6.71%, a full percent higher than the same period a year ago. So far, home demand in Central Ohio has not suffered from these increased costs, but not all home buyers are able to keep up.
A recent report from ATTOM Data shows that home affordability worsened nationwide during 2023. The portion of wages a typical home buyer must dedicate to a mortgage payment currently averages 33%. Ideally, mortgage lenders like to see a front-end debt-to-income ratio of 28%. ATTOM’s study included median home prices in 574 U.S. counties, and among those, 565 were deemed less affordable than they were in 2022.
Central Ohio homes are still generally considered affordable, especially compared to home prices in other major metros. ATTOM reports that Franklin County home buyers spend about 29.1% of their annualized income on a mortgage, based upon local median wages. On the index of home affordability, with 100 being historically affordable, ATTOM ranks Franklin County at 67. Central Ohio is not the most affordable housing market in the nation, but we are far from being the worst.
The question facing home buyers is where Central Ohio home prices and mortgage interest rates go from here. Odds are, both may increase in cost in the weeks ahead. A well-prepared home buying budget plan, along with a current mortgage pre-approval letter, should be in hand before entering the market – with an Exclusive Buyer’s Broker at your side!
As Exclusive Buyer’s Brokers, 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!
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
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