While nearly everything has changed over the past 5 months, one thing has remained a remarkably steady force – the real estate market in Ohio. While much of the Great Recession in 2008 was blamed on a fragile real estate market, it is one of the industries that is remaining strong during these uncertain times.
So why isn’t the economy tanking and taking home prices with it? At least in Ohio, and particularly in the Northeast and Columbus markets, strong industries prior to the pandemic, have helped to fuel it in the present environment. Last year, 2019, was a strong year for Columbus’ real estate market fueled by the overall strength of the economy and low mortgage rates, resulting in a great increase of buyer activity. The Northeast Ohio market continues to heat up, where homes are selling so fast that buyers can’t hesitate when they find a property they love.
Furthermore, home prices are dictated by supply and demand, and it seems that there has been an even drop of both, keeping the relationship between the two largely unchanged. As a result, home prices remain strong, much as they were before the pandemic. According to some experts, the housing market is on pause – buyer and sellers have both left the market in even proportions, transactions have dropped, and prices remain steady.
As long as home prices remain strong and people continue to demand new housing – in strong part due to record-low mortgage rates – the real estate industry as a whole remains healthy. And to their credit, real estate agents have quickly adapted to “new normal” operating procedures to service their clients, including moving the homebuying process online. A recent survey among Americans age 50 and older shows an increase in comfort with virtual tours and inspections, with over half (59%) saying that they would be comfortable putting their home on the market virtually.
Along with a shift in how homes are being bought and sold comes shifts in homebuyer preferences. There appears to be a moderate shift toward suburban living, and comfort and convenience are priorities for those looking for a new home.
With traveling and entertainment outside of the home limited due to the coronavirus, homeowners are creating their own entertainment at home. More than ever, outdoor entertainment areas that include swimming pools, fire pits, and larger yards in general are becoming important attributes for homes.
It is essential that a homebuyer is well prepared to enter the market, with the necessary paperwork ready to go. Especially first-time homeowners , who should be aware of what mistakes to avoid, and how to be best prepared to successfully purchase a home that will be a good investment over the long-term.
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