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Commercial Loan Growth is a Boom for Columbus Housing Market

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The Central Ohio economy is finally beginning to show some signs of life. Crain’s Cleveland Business reported that job growth is trailing the rest of the country, but still accelerating from its pace in 2014. The Ohio Department of Taxation has also shown tax receipts have increased, which means that economic activity is starting to pick up as well.Financial-District-Toronto-Canada
New data shows that the commercial sector is growing faster than originally expected, which suggests that job growth will pick up as well. This report indicates that the economy is starting to grow more rapidly. Recent reports on rising commercial loans corroborate this prediction.

Commercial Loans Indicate Columbus Economy on the Upswing

Columbus businesses have been expanding more rapidly over the past year. According to Fifth Third Bank, the number of commercial loans it received in 2015 has increased 12% since the prior year. Jerry Kelsheimer, the CEO of the bank’s headquarters in the northern part of the Ohio, said that the number of loans in that region is growing over twice as fast as other markets it serves.

The rising number of loans isn’t the only factor demonstrating that the economy is becoming more robust. The Federal Deposit Insurance Corp. has released data showing the average dollar value of each commercial loan is rising by 8%, which means that the total value of all commercial loans has risen 50%.

The rising number of commercial loans indicates that businesses are expected to grow much faster over the coming year. This suggests that the Ohio economy is going to be much stronger in the coming year.

Housing Market Will Rise As Private Sector Jobs Are Created

There is a strong correlation between private sector job growth and housing sales. New commercial loans indicate that private sector employers are looking to expand. They will probably need to hire new staff to meet their needs as they strive to penetrate new markets and reach more customers.

Stronger job creation will ultimately lift the housing market. Realtors throughout Northern and Central Ohio are confident that housing sales will boom as hiring picks up. Demand for housing may increase even more rapidly if out of state residents are drawn to Central Ohio seeking jobs.

Homeowners that are interested in selling their properties should be aware of this trend. They should pay close attention to changes in the job market, because they will likely be followed by a rising demand for new housing in the area.

Zillow Report Predicts Ohio Housing Market Growth to Double in 2016

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The Ohio housing market had been growing tepidly between 2008 and 2014. However, recent reports from Zillow shows that the market is finally starting to recover. Experts from Housing Predictor feel that local real estate investors should be optimistic about the long-term direction of the market.

Zillow Expects Growth to Double in 2016housing-market

Zillow reports that demand for housing in Ohio increased by 1.7% in 2015. This is stark improvement over prior years, while the market had been stalling. Zillow’s research also predicts that the market will grow by 2.6% between May 2015 and May 2016.

There appear to be a number of factors that are fueling the local housing recovery. The strengthening job market is probably one of the biggest reasons for the turnaround. The unemployment rate in Ohio was about 10% in 2010, but has since dropped to 5.6%. The state could reach full employment by the middle of next year if the economy continues to improve at the current pace.

Demand for housing will continue to grow rapidly as the job market continues to improve. Ohio has proven to be home to one of the strongest economies in the country, so growth is expected to continue through the next year.

Some temporary problems may hamper the state economy to some degree, which could curtail housing market growth. Precipitation has been heavy this summer, so the farming industry hasn’t been as productive as possible. Economic growth may accelerate if weather patterns change before the fall, which could spur the housing market for the future.

The Cleveland Index shows that housing demand in the Cleveland area has grown more rapidly than most other areas in the state. The demand for housing in

Construction and Sales of New Homes Still Menial

The housing market as a whole is proving to be rather robust. However, demand has primarily increased in areas with older housing units. Construction and sales of newer homes have failed to increase to nearly the same degree.

Housing starts could pick up in the coming year if prices rise faster than originally anticipated. Many experts have raised concerns about affordability as prices rise with demand. However, David Blitzer, chairman of the index committee at S&P Dow Jones Indices said that prices will eventually begin to taper out, although he didn’t specify whether the deceleration would be driven by increased supply.

“Over the next two years or so, the rate of home-price increases is more likely to slow than to accelerate,” Blitzer wrote.

Source: Zillow