Why investing in Central OH Real Estate is producing
above average returns
“Why investing in Central OH real estate makes sense,” is a question that is different for every investor. Interest rates in the US are historically low. The US economy is improving, so what was a good investment for you 6 months ago, may not be so good today. Why investing in Central OH real estate makes sense is a question that we will answer, by providing you the Central OH real estate market information. So you can make an informed decision.
Columbus OH Rental housing – Outlook by http://columbus.uli.org/
Columbus Rental housing is clearly in a growth phase, as it was last year. “We are in a boom, with high demand for apartment living in various parts of the city. “However, more respondents than last year are seeing the Central OH real estate market peak, and perhaps enter the early phases of decline, as it is cheaper for some people to own . “Multifamily development continues to develop at a record breaking phase. It will have to slow.” Developers “who are getting into apartments now could be late. “Any slowdown may be a minor speed bump from a broader perspective. “You may see overbuilding of multifamily rental in the short term, but in the long term that’s where the sweet spot is.” “The growth of one-person households is changing demand. “Multiple interviewees note senior housing as a growth opportunity in the Central OH real estate- market and a reason Why investing in Central OH Real Estate makes sense. “The market has not fully addressed seniors who do not want to own a home, who want flexibility.”
Trends in Columbus, OH Rental Vacancy Rate
The rental vacancy rate in the Central OH real estate- market peaked in 2005 at 13.53%. Since then it has fallen by 8.60% to 4.93%.
|2015||1 Year Change||2 Year Change|
|US Median Gross Rent||$959||+3.12%||+8.24%|
|Ohio Median Gross Rent||$746||+2.05%||+6.27%|
|Columbus, OH Median Gross Rent||$869||+3.08%||+9.58%|
Now that rents in Central OH are at market highs, and distressed real estate is still available. Investors are answering the question why investing in Central OH Real Estate is worth while looking at.
Houses for Sale Market
Single-family housing has moved into the recovery phase of the Central OH real estate- cycle. Two thirds of respondents (67 percent) place single family lot development in the recovery phase, compared to 30 percent last year. For single family home building, the figures are 77 percent and 39 percent, respectively. Multifamily for-sale housing has not fully entered recovery, but a number of interviewees noted the beginnings of a shift from rental to condominiums, especially product geared towards empty nesters. This is why investing in Central OH real estate is a smart move for some investors.
According to the Columbus Board of Realtors housing Report there were 3,987 central Ohio homes and condos put on the market during the month of April, a 15.2 percent increase over March and a 7.4 percent gain over April 2014. This increase put the total inventory of homes for sale at 7,003,
The average sales price of a home during the month of April in central Ohio was $186,419, which is a 6.3 percent gain over April 2014 and a 4.4 percent increase over the previous month. The median sale price in April was $159,000, up 6 percent from a year ago.
The average sales price is the total volume divided by the number of homes sold. The median is the midpoint — half the homes sell for less, while half sell for more.
There were 2,404 central Ohio homes and condos sold in April 2015, which is a 12 percent gain over the previous month and a 3.9 increase over April 2014.
The number of homes in contract also climbed to 3,936 which was almost 13 percent higher than March, and a 12 percent jump from the same month a year ago.
During the month of April, homes spent an average of 62 days on the Central OH real estate market (from listing to close), down 15 days from April 2014
According to the latest Housing Market Confidence Index (by the Ohio Association of REALTORS®) 94 percent of central Ohio REALTORS® expect home prices to rise over the next year. When asked the reason for home sales not closing, 35 percent said inspection issues, 33 percent sited appraisal issues and 27 percent said financial issues were to blame.
Eighty-five percent said that what’s keeping local homeowners who want to sell their homes from putting them on the market is the lack of homes to buy after they sell
What is causing the market reaction?
The Central OH real estate- market is a result of Central OH’s economic growth. OH is operating at a 5.2% unemployment rate while the national average is 5.5% unemployment rate. Ohio’s nonfarm wage and salary employment increased 6,400 over the month of May, from a revised 5,388,600 in March to 5,395,000 in April 2015. The economy of Ohio nominally would be the 25th largest global economy behind Sweden and ahead of Nigeria according to the 2013 World Bank projections, and the 24th largest global economy behind Sweden and ahead of Norway according to the 2013 International Monetary Fund projections
The state again has been recognized on a national level, with industry publication Site Selection magazine ranking Ohio second nationally in new and expanded corporate facilities for 2014. This increase in jobs and commerce has caused a demand for housing, and answering the question why investing in Central OH Real Estate maybe a good investment .
There is also a shortage of inventory in both the low to mid-range rental market and in the houses for sale market. This shortage in supply is causing the prices in the single family housing market to increase. Renting in Central OH is becoming ever more expensive making owning a home more attractive.
According to msn.com 6 of Ohio’s cities made “The 50 Most Competitive Housing Markets of 2015”
All of these factors have made Ohio a great place for real estate investors in Ohio and has caught the ear of wall street. Smart investors follow the big money and do their homework when it comes to investing in alternative fixed-income funds . CORI LLC understands this and has created this white paper ” Why investing in Central OH Real Estate ” to inform real estate investors in Ohio on the Central OH real estate- market conditions . To get more information on why investing in Central OH Real Estate maybe right for you click here.