Ohio Real Estate Market: What to Expect In 2024 & 2025?

The current median home sale price of $260,500 is stable and rising steadily at 6.9% YoY. Moreover, homes spend only 32 days on the market. This indicates that the Ohio real estate market is pretty much competitive.

The average months of home supply are 2 months YoY. A market with fewer months of supply indicates a seller’s market. However, the number of homes sold increased by 5.9% YoY in July. There were 12,163 homes sold in July 2024, down from 11,485 homes sold in July 2023.

Such inactivity in the market is mainly due to the recent NAR settlement. People are anxious about the selling prices and agents’ compensation.

The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with low mortgage rates. Here are some tips for you to sustain in the market:

• If You Are a Home Buyer: Homes for sale (37,809) grow at 16.3%. Along with this, the expected drop in home prices can benefit you. The low interest rates at 6.37%-6.62% are now in buyers’ favor. Also, in case of low housing demand and prices, you can request seller concessions.
• If You Are a Home Seller: You can lock in Ohio’s current high home prices. The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sales before prices potentially drop.

So, How Is the Real Estate Market in Ohio?

Balanced!

The number of homes for sale increased by 16.3% in July 2024 compared to the previous year. This is the 5th consecutive month the housing market has witnessed such growth. Other important facts are:

• Median Days on Market: The median days on the market for homes for sale are 31 days, up by 8 days YoY. This trend suggests a high demand in the Ohio real estate market.
• Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 16.3%. There are 36,325 homes for sale in Ohio, with an average supply of 2 months.
• Average Home Prices: The median home price in Ohio is $260,500. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 100.1%, down by 0.68 pt YoY.
• Home Sales: As per July 2024 data, home sales decreased by 10.8% YoY! Only 11,669 homes were sold, compared to 13,076 last year.
• Average Rent Prices: Rental costs vary statewide. The median rent is $1,300 with a month-over-month change is $0.

Why Is Ohio a Seller’s Market Now?

Ohio’s real estate market has a balanced inventory of homes for sale. Besides this, a steady increase in median home prices favors home sellers. Homes spend only 32 days on the market which depicts the competitive market.

Let’s look at some more facts:

• Fewer Days on the Market: Homes spend only 32 days on the market before going under contract. This is visible in metro cities like Shaker Heights and Sandusky where the average days on the market is between 19 to 45 days.
• Multiple Offers on Homes: Shaker Heights has got 81 and Sandusky got 63 in Redfin’s Compete Score. It means the housing market in Ohio is very competitive. It shows that many homes get multiple offers, some even sold without contingencies.
• High Sale-To-List Price: The average homes sell for about 2% above the list price whereas hot homes sell for about 9% above the list price. The average sale-to-list price ratio in Shaker Heights is 99.8%.
• Homes Sell Above List Price: On average, 40.4% of homes sell above list prices. However, in July, 30.7% of homes experienced price drops, compared to 34.5% last year. This trend indicates a gradual shift toward a buyer’s market.

Ohio Housing Market Predictions 2024

Here are the predictions for Ohio’s housing market in the remaining months of 2024 and 2025:

1. Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
2. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across OH YoY, reaching $265K in July 2024. Cities like Shaker Heights and Sandusky expect a surge of 66.8% and 79.8% in home prices.
3. iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.

Bonus Predictions: Buyer Broker Commissions Will Be Zero!

In a shocking turn of events, the NAR settlement has eliminated buyer agent fees from the MLS. Let’s understand its impact:

1. Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
2. Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
3. Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
4. Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.

Is the Housing Market in Ohio Going to Crash?

A housing market crash in the Buckeye State is unlikely.

Shaker Heights, a thriving city, has a stable job market with strong opportunities in the tech and healthcare industries. Additionally, education and professional services support Shaker Heights’ growing economy.

Ohio’s unemployment rate is currently at 4.5%. As a key player in tech, healthcare, and manufacturing, Ohio offers numerous job opportunities across these sectors.

The average cost of living in Ohio is $48,000 which is lower than the national average. The median household income is $67,520. Living in Ohio’s scenic landscapes and vibrant cities is relatively affordable. It’s unlikely that Ohio’s housing market will face a downturn anytime soon. 

2024: Is It a Buyers’ or Sellers’ Market Now?

Ohio real estate market favors sellers in 2024. (And buyers, too!). The Ohio real estate market is expected to lean more in favor of the buyers in the latter half of 2024.

Home prices are rising slowly, and the number of homes for sale has increased by 20% YoY. Buyers now have more choices. With mortgage rates around 6.37%, buyers also have more purchasing power.

Consequently, more homeowners are likely to list their homes on Ohio MLS. The 6.3% increase in new active home listings in Washington has brought back home shoppers. So, whether you are looking for a condo in Shaker Heights or a single-family primary home in Sandusky, you will find your dream home in the coming months.

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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.

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