Columbus Home Prices Climbed 7.2 Percent in Past YearMay 18, 2016 10:45 am Walker Evans
Good news for home owners, and bad news for prospective home buyers. According to a report from the National Association of Realtors (NAR), the median home price in Columbus has risen over seven percent in the past year — which means appreciation for current owners, but a higher price tag for those looking to buy.
The rise home prices in Columbus are a reflection of the rest of the United States, where increases have occurred in 87 percent of the major metropolitan markets between the first quarters of 2015 and 2016.
“The solid run of sustained job creation and attractive mortgage rates below four percent spurred steady demand for home purchases in many markets,” said Lawrence Yun, Cheif Economist at NAR. “Unfortunately, sales were somewhat subdued by supply and demand imbalances and broadly rising prices above wage growth. As a result, the path to homeownership so far this year remains strenuous for a segment of prospective buyers in the most competitive areas.”
The national median price for a single-family home is $217,600. The Columbus median price is still a bit more affordable than the national average, at $160,700. That price currently equates to a $767 monthly mortgage payment at a four percent interest rate.
“Current homeowners in many metro areas – especially those who purchased a home immediately after the downturn – have enjoyed a sizeable boost in housing equity and household wealth in recent years,” added Yun. “At a time of stagnant wage growth and mounting rent increases, the same cannot be said for renters. Their inability to reach the market because of affordability and supply restrictions is contributing to rising wealth inequality in the US”
Across Ohio, every major metro area saw an increase in home prices as well. Cincinnati grew by 2.1 percent, Canton by 4.2 percent, Cleveland by 5.1 percent, Dayton by 11.1 percent, Akron by 12.2 percent, Toledo by 15.6 percent, and Youngstown grew by a whopping 20.5 percent — although the median home price in Youngstown remains at $77,500, the second lowest level in the country.
In related news, Columbus was recently named by Realtor.com as having the 10th hottest housing market in the US.
For more information, visit www.realtor.org.