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 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.