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Columbus, Ohio: Real Estate Market & Trends 2016

The Columbus real estate market is blossoming into an investor’s market in 2016, as home prices continue to fall below the national average. The median home price for the Buckeye City was $181,700 during the second quarter, compared to the national average of $239,167. Although home prices for Columbus real estate are up from a year ago, price growth remains unhurried. In the eyes of investors, however, appreciation rates for the Columbus real estate market are red-hot, with homes appreciating faster than the national average. With the first half of 2016 in the books, the Columbus real estate market is expected to experience an array of investor activity in the second-half of the year.

Columbus, OH Real Estate Market Statistics:

Columbus real estate investments

The best real estate investors have the ability to see the positives in any given situation. For Columbus real estate investors, this is found in appreciation rates, which continue to rival the national average. The second quarter of 2016 saw Columbus real estate appreciate at a rate of 5.6 percent, compared to the national average of 4.9 percent. The three-year appreciation rate was 22.3 percent, compared to the national average of 17.8 percent. That said, gains in the last three years extended the trend of positive price growth after the recession. For those considering Columbus real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Columbus, OH housing market one year ago have appreciated, on average, by $12,539. The national average was $14,963 over the same period.
  • Homes purchased in the Columbus, OH housing market three years ago have appreciated, on average, by $40,918. The national average was $46,878 over the same period.
  • Homes purchased in the Columbus, OH housing market five years ago have appreciated, on average, by $61,109. The national average was $82,353 over the same period.
  • Homes purchased in the Columbus, OH housing market seven years ago have appreciated, on average, by $60,102. The national average was $77,054 over the same period.
  • Homes purchased in the Columbus, OH housing market nine years ago have appreciated, on average, by $46,958. The national average was $31,126 over the same period.

Total equity appreciation gains for the Columbus real estate market continue to mirror the national average. However, the seven-year mark for Columbus real estate saw equity grow to $46,958, outpacing the $31,126 achieved by the rest of the country. That said, Columbus real estate investing should remain hotter than normal in the second-half of 2016 and beyond.

As of July 2016, there are currently 3,972 properties in the Columbus area in some stage of foreclosure. According to RealtyTrac, the number of Columbus foreclosures in the month of July was 42 percent higher than the previous month and 43 percent lower than the same period in 2015. Additionally, the number of REO properties in Columbus fell 41.8 percent from the previous month and 53.8 percent from the same time last year. The timing continues to improve for Columbus real estate investors, as the market is shifting in their favor.

Columbus, OH: Real Estate Market Summary:

Columbus housing market

  • Current Median Home Price: $181,700
  • 1-Year Appreciation Rate: 5.6%
  • 3-Year Appreciation Rate: 22.3%
  • Unemployment Rate: 4.2%
  • 1-Year Job Growth Rate: 4.3%
  • Population: 822,553
  • Median Household Income: $43,844

Columbus, OH: Real Estate Market (2016) — Q2 Updates:

Columbus real estate investing

So far in the first-half of 2016, the Columbus real estate market has unveiled the makings of an investor’s market. A combination of subpar home prices and accelerating appreciation rates have made Columbus real estate especially appealing to real estate investor, with additional factors such as an above-average economy expected to positively influence the outlook in 2016.

The current unemployment rate for Ohio is 4.2 percent, slightly lower than a year ago (4.3 percent), but better than the national average at 4.9 percent. Furthermore, the one-year job growth rate continues to outpace the country as new jobs accrue at a rate of 2.3 percent, compared to 1.9 percent. With employment on an upward trend, and the economy of Ohio outpacing the rest of the nation, the Columbus real estate market is poised to have a stronger second half.

In terms of home affordability, the Columbus housing market continues to be a bargain compared to the rest of the nation. Columbus real estate investors and homeowners paid 8.1 percent of their income to mortgage payments during the second quarter of 2015, while the rest of the nation paid nearly double that: 15.8 percent. The monthly mortgage payment to income ratio for Q2 was actually better than its historical average of 10.6 percent, and far better than the national average which has a 19.5 percent historical average. Not to be outdone, Columbus was ranked in the top 20 hottest housing markets in May, according to Realtor.com. That said, the Columbus housing market was more affordable than most markets in the second quarter of 2016.

Another beneficial aspect for Columbus real estate investors is new housing construction. The current level of construction in Columbus is 26.1 percent above the long-term average, with single-family housing permits increasing 12.9 percent, compared to the national average of 10.6 percent. This spells opportunity for Columbus real estate investing.

Moving forward, the Columbus real estate market is expected to see positive growth in the second-half of 2016. The National Association of Realtors (NAR) forecasts higher price growth in Ohio than in the U.S. in the next 12 months, with price expectations for Ohio real estate currently at 3.8 percent, compared to the national average of 3.6 percent. Therefore, the Columbus real estate market should remain investor-friendly in the second-half of 2016 and beyond.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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