8 min read Mar 06, 2024

Ohio Real Estate Market: Predictions for 2024

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Edited By

Megha Mulchandani

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Editor
Edited By

Megha Mulchandani

Editor, Houzeo
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Megha M. is an adept content editor well-versed in the intricacies of American market dynamics and economic trends. In her free time, she excels as a versatile theatre artist and public speaker.

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Ohio homes continued to sell at eye-popping prices last month. The median home sale price rose 6.5% year-over-year from $202,700 to $215,600 in January. The number of homes sold also increased by 7,075 homes to 7,304.

Interest rates are at 7.28%, but is Ohio still a seller’s market? Let’s look at the facts.

Youngstown homes sold for a median sale price of $131,500 in January, up 69.3% increase year-over-year. Homes in Miamisburg sold for a median sale price of $269,000, a 50.9% increase year-over-year.

Interest rates are at record highs, with few home buyers. But the inventory is so low that 25.4% of homes sold above the list price!

  • If You Are a Home Buyer: You can avoid bidding wars and avail seller concessions if you buy a home now. The 7.28% interest rate and mortgage payments are significant, but rates are unlikely to drop in the next few months. If they do, you can refi.
  • If You Are a Home Seller: You can lock in Ohio’s high home prices. The scarcity of homes in OH makes it a seller’s market. Homes listed on MLS sell faster and for 17.5% more than off-MLS homes. That could be thousands of dollars in additional proceeds if you sell via Houzeo.

The current Ohio real estate market statistics don’t reflect the national trend of high demand and low supply. Home sales and property prices in Ohio increased despite 2023’s slow market.

Swell! Home values in Ohio rose by 49.4% in the last 5 years. Home sales increased by 2.9% in January 2024 YoY despite the mortgage rate climbing to 7.28%! So, Ohio’s housing market is strong, if not bullish.

Even if mortgage rates continue to increase alarmingly, home sales will not falter. So, if you want to sell a Ohio property, now is the right time to list it on MLS.

👉 List Your Ohio Home for Sale: Would-be buyers and buyer agents scour the MLS for turnkey properties. Start your listing for FREE!

Ohio Real Estate Market Statistics

  • Average Home Prices: The average median home price in Ohio is $215,600, up by 6.5% YoY. In 2024, the median sale price will keep increasing marginally due to OH’s tight inventory. The sale-to-list price ratio is at 25.30%, with an increase of 9.1% pt YoY compared to January 2023.
  • Home Sales: As per January 2023 data, home sales increased by 2.9% YoY! In January 2024, only 7,251 homes were sold, up from 7,048 in January 2023.
  • Average Rent Prices: Rental costs vary statewide. An average tenant in Lancaster pays $1,844, while the one living in Toledo pays $896.
  • Median Days on Market: The median days on the market for homes for sale was 42 days, down 7 days YoY.
  • Pending Sales: The number of homes for sale declined by 2.4% YoY compared to 2023. Currently, there are 26,159 homes for sale in Ohio.
  • Months of Supply: The average time of supply is 2 month. OH’s demand can’t be satiated with the low supply. OH’s house scarcity is worse than the national housing market.

Ohio Housing Market Predictions 2024

Ohioans have survived the shockwaves of skyrocketing mortgage rates and rising home prices of 2023. Here’s what we predict for Ohio’s housing market:

  1. Home Sellers Will Return to the Market in 2024: Sellers who chose the sidelines in 2023 will come back. Especially those who can’t avoid new jobs or want to move to a cheap place. Whitney, the analyst who predicted the 2008 financial crisis accurately, has forecasted that baby boomers looking to downsize will also add up to 30 million housing units. Yowaza!
  2. Mortgage Interest Rates Will Stabilize by the 2nd Half of 2024: Mortgage rates hit 7.79% in October 2023, the highest level in 23 years. However, the rate dropped to 7.35% in November due to the softening labor market and slowing economy. Even the annual inflation rate went from 3.7% to 3.2%. We think the rates will remain above 6%, but they will stabilize in the second half.
  3. The Number of Home Buyers Will Rise: The historically high interest rates averted buyers in 2023. But mortgage demand rose after the interest rates lowered to 7.35% in November. The easing inflation and stabilizing rates will bring back house hunters.
  4. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across OH YoY, reaching $215K in January 2024. Experts predict home prices will continue to rise until the low supply-high demand dynamic changes.
  5. iBuyers Will Continue to Make Lowball Offers: iBuyers offered 104.1% of market value in 2021. They offered 86% in 2022 and around 70% in 2023. Opendoor and Offerpad have lost billions of dollars in 2023. As they struggle to survive, they will make lowball offers.

Bonus Prediction: Buyer Broker Commissions Will Be Negotiable!

In a shocking turn of events, the jury in Missouri awarded more than $5 billion in damages to the Sitzer-Burnett plaintiffs. This motivated nationwide home sellers to file grievances against NAR’s Cooperative Compensation Rule.

NAR’s Cooperative Compensation Rule or Participation Rule states that listing brokers must offer competitive compensation to buyer agents if they want to list properties on a NAR-affiliated MLS.

Sitzer/Burnett v. NAR

The Bombshell Lawsuit that Could End Buyer Agent Commissions

Start Your MLS Listing NOW!

Lawsuits like Moehrl, Gibson, Batton, Nosalek, and Batton 2 challenge the Participation Rule. They accuse NAR and other top real estate companies of colluding and conspiring to keep agent commissions high.

If the jury also finds the defendants guilty in these cases, buyer agent compensation may change. Buyer agents may become obsolete by 2025! Phew.

While buyer agents are unlikely to be obsolete in 2024, they may be open to negotiating commissions. That’s probably how they will still have some skin in the game.

When Will the Housing Market Crash in Ohio?

Even though Americans are moving out of the Buckeye State, a housing market crash in Ohio is unlikely.

Ohio is a safe haven for nature lovers, with over 74 state parks, 17 state forests, and 12 state wildlife areas providing ample opportunities for outdoor adventures. Ohio’s economic strength further bolsters its stability. With an unemployment rate of just 3.70% as of January 2024, Ohio boasts a thriving job market.

Additionally, Ohio ranks 17th in the US for having an affordable average cost of living for a family of four members is $48,000, which is 8% lower than the national average. The median household income is $61,938, making it an enticing destination for homebuyers.

Overall, the state’s consistent population growth rate of 1.9% in 2023, coupled with its robust economic fundamentals, creates a solid foundation for continued housing demand. So, it is unlikely that Ohio’s housing market will crash anytime soon.

2024: Is it a Buyer’s or Seller’s Market?

2024 will be a terrific market for sellers. (And buyers, too!)

Home prices in Ohio are rising and will continue to rise till the supply-demand dynamic changes. The number of houses for sale in OH was only 26,159 in January 2024. There is very limited inventory to satiate the demand from house hunters. This also makes it the best time to sell a house in Ohio.

After the mortgage rate plummeted from a two-decade-high rate of 8% to 7.28% in January, new listings rose. This shows that those who refused to sell due to mortgage rate lock are finally acclimatizing to 7% rates. In the coming Spring of 2024, more homeowners will follow suit and list properties on Ohio MLS.

As home listings in Ohio increase, home shoppers hugging the sidelines will also return. The recent uptick in mortgage applications shows that buyers are returning.

House hunters who could not find affordable homes in 2023 will also start shopping in 2024. The demand for Ohio houses will increase – and that’s why sellers may be able to dominate the market.

However, new builds will compete for attention from buyers. Home builders have persuaded buyers to buy new construction homes with mortgage buydowns worth $30K in 2023! Builders will continue offering concessions in 2024, and home sellers may have to wage wars against them.

Listings of new constructions, baby boomers looking to downsize, and desperate home sellers will flood the market in 2024. The properties for sale in Ohio will increase. So, whether you are looking for a condo in Cincinnati or seeking to live in a co-op, you will find your dream home next spring.

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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.

Frequently Asked Questions About Ohio Real Estate Market

Is the housing market going to crash in Ohio?

Most probably, no. Here are 5 reasons why the housing market is unlikely to crash in Ohio: (1) Low months of supply. (2) Low newly constructed housing supply. (3) New buyers are entering the market. (4) Strict lending standards. (5) Fewer foreclosures.

What are the real estate housing market 2024 predictions for Ohio?

The predictions for 2024's Ohio housing market are: (1) Mortgage rates may stabilize between 6% to 6.5%. (2) Number of home sales may be less. (3) Home prices may stay low. (4) Housing affordability will remain stable. (5) iBuyers are likely to buy homes for lower than the market value.

Are home prices dropping in Ohio?

No, the property prices in Ohio were up by 6.5% YOY in January 2024. However, you can still find some of the cheapest places to live in Ohio. With a 49.4% rise in the past five years, exploring budget-friendly cities is crucial amid the current scarcity of available properties in OH.

Is it a good time to buy a house in Ohio?

Yes! Currently, there are very few buyers in the market compared to the supply of homes in Ohio. The soaring interest rates has kept buyers at bay, so you can avoid bidding wars. As the mortgage rate stabilizes in 2024, more buyers will return, so we'd recommend you to buy a house now. If mortgage payments burn a hole in your pocket, you can always refinance.

» Best Time to Buy a House in Ohio: Find out the best time to buy a Ohio property & plan your finances accordingly.

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