There aren’t enough flame emojis on the Internet to describe the Columbus housing market. In 2022, the median home in Franklin County sold for $277,000, an 11.1% jump year-over-year. Sheesh. 🔥
Real estate agents are predicting many changes next year, including interest rates, sale prices, and time on the market. But for those hoping to dip their toes in the home buying waters soon, it helps to know what trends to expect. Put on your floaties, and let’s hear what the local experts predict.
Keep an eye on the ‘burbs 🏡
Lee Ritchie, Leader and Principal of Ritchie Realty Group of RE/MAX Partners, said remote working + the pandemic led to major shifts for home buyers. In short, people want more space. This includes home offices, backyards, and additional bedrooms, all of which Lee said can be more easily found in suburbs like Dublin, Upper Arlington, or Hilliard.
Both Lee + Priscilla Johnson, Realtor with Columbest Homes which she just launched, expects the local market to normalize in 2023. The strong sellers market in 2022 has started to slow down, Priscilla said, but a move-in ready home in a preferred school district will still see some competition.
Don’t give up on living in the city 🏡
While many are flocking to the suburbs, Lee said areas like German Village seem to be timeless for buyers. This all leads back to lifestyle, where some prefer urban living with access to nightlife and retail. However, median home prices are well over the city median at $534,000+, according to Realtor.com.
Worth it to wait? 🏡
Lee + Priscilla noted rising interest rates as possible hindrances on what buyers are able to do, but that doesn’t mean wait. In fact, Lee said it’s the opposite.
“It’s like the best time in years to actually buy a home,” Lee said.
Until recently, buyers would sometimes have to pay more than the asking price in addition to inspection fees and other move-in costs. Now, Lee said this is less common and buyers can avoid things like waiving the appraisal gap coverage.
What about renting? 🏡
Priscilla said rental prices can be difficult to determine as property owners can typically change prices, leading to fluctuation. Though Columbus was ranked the second-most affordable city in 2021 by RentHop, this doesn’t accurately show the whole picture.
She explained that costs are higher than normal for property owners which leads to rent prices raising when new ownership takes over. While rising interest rates can seem daunting, Priscilla recommends speaking to a real estate agent to weigh your options first.
Eye on the school districts 🏡
Lee + Priscilla said neighborhoods near popular school districts have been, and seem to always be, trending on the market. Lee noted neighborhoods like Gahanna, Powell, and Grandview which all have schools with high ratings from the state.
The supply + demand problem 🏡
The city needs to add roughly 14,000 new homes each year in order to keep up with job creation, according to research by Vogt Strategic Insights published by The Columbus Dispatch. Vogt researchers cited Intel’s $20 billion semiconductor factory being constructed in New Albany as one of the many large job creators for the future.
During the general election in 2022, voters passed a $1.5 billion infrastructure bond package that included $200 million towards affordable housing. This bill will take effect next year.