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Home Buying in Ohio

John A Roebling Suspension Bridge Cincinnati Ohio

From its bustling cities to its rolling hills covered in buckeye trees, Ohio has earned a reputation as a great place for families, businesses, and affordability. As it is known, the Buckeye State is a popular destination for anyone seeking a balanced lifestyle. Ohio offers a welcoming environment for those looking to settle down. Its strong job market, low cost of living, and rich cultural heritage make it a great choice for homebuyers.

Ohio's housing market has its challenges, however. Major urban areas like Columbus, Cleveland, and Cincinnati have seen a sharp rise in demand, with some markets experiencing a demand that outpaces supply. As demand has grown, so has competition among buyers, especially in some of the most sought-after neighborhoods. Smaller cities and rural areas, particularly in southeastern Ohio, offer more affordable housing options and a slower pace. However, inventory can be somewhat limited.

Despite rising housing demand in certain cities, Ohio remains relatively affordable. The median home price in Ohio is around $250,000, which is lower than the national average and lower than its most neighboring states. This makes it an attractive market for first-time homebuyers and anyone looking to relocate. However, any population growth experienced in the state has been relatively inconsistent.

There are both buyer markets and seller markets throughout the state. In fast-growing cities like Columbus, the market favors sellers, with homes typically staying on the market for about 30 days. Many homes even sell above their list price. Buyers often have the upper hand in and around Youngstown and Canton, where demand is lower, with more homes to choose from and less competition.

Ohio offers a wide range of living environments. However, prospective homebuyers must understand the market dynamics of the specific region they are considering and how other issues, such as property tax rates and financing, should be factored into their decisions. Partnering with a knowledgeable real estate agent is not just a recommendation; it's a crucial step to help you navigate the process and find the home that best fits your needs and budget.

Ohio Housing Trends

Here are some important housing trends that Ohio homebuyers should consider:

  • Median Home Price

    Ohio's median home price is roughly $250,000, well below the national average and considerably more affordable than in nearby states like Michigan and Pennsylvania. However, home prices vary greatly across the state. Columbus, the state capital and fastest-growing city, typically sees higher home prices, with a median price around $300,000. Although also major metropolitan areas, Cleveland and Cincinnati offer more moderately priced options, with median home prices closer to or less than the state median. In many rural parts of the state, it's possible to find homes priced below $200,000.

  • Number of Homes Sold

    On average, around 13,000 homes are sold monthly in Ohio, reflecting the state's larger population and more active real estate market than many other states. Ohio's diverse economy and range of housing options drive consistent demand, particularly in metropolitan areas. While urban centers dominate sales volume, Ohio's rural regions also see increased interest from homebuyers seeking more affordable housing, larger properties, and a laidback lifestyle.

  • Median Days on Market

    Ohio's median days on the market (DOM) is around 30 days, though properties in high-demand areas tend to sell even faster, often within two to three weeks. In contrast, homes in more rural areas typically stay on the market longer, with lower demand and a smaller buyer pool.

  • Supply Statistics

    Like much of the U.S., Ohio needs new housing inventory. While new construction is rising, it has yet to keep pace with increasing demand in many parts of the state. To achieve a balanced market, the rate of new home construction will need to continue growing, particularly in high-demand areas like Columbus and Cincinnati.

How to Find the Right Home in Ohio

Cleveland Ohio Real Estate

Consulting with a local real estate agent is essential for anyone considering buying a home in Ohio. Whether purchasing your first home, contemplating a move, or looking to invest, an agent can help you find a house that fits your unique needs. It is important, however, you and your local realtor are on the same page regarding those needs and your goals and aspirations. To succeed as a prospective homebuyer, you must have a firm personal grasp of those things.

Finding the Right Home

Here are some things to consider:

Location

When purchasing a home in Ohio, location is a critical factor impacting price, commute times, school districts, and overall quality of life.

  • Urban areas vs. suburbs: Ohio offers a variety of living environments, from bustling urban centers like Columbus, Cleveland, and Cincinnati to quieter suburbs like Dublin, Westlake, and Mason. Ohio's metropolitan areas provide access to cultural institutions, entertainment, and employment hubs, while its suburban communities are known for their family-friendly neighborhoods, larger homes, and more outdoor space.
  • Proximity to Work: Employment opportunities in Ohio are often centered in the state's major cities. For those working in Columbus, suburbs like Upper Arlington, Worthington, and New Albany offer short commutes with access to major highways. Similarly, in Cleveland, suburbs like Lakewood and Shaker Heights are desirable for their proximity to downtown.
  • Access to public transportation: Ohio's most significant public transit systems center around larger cities like Cleveland, Cincinnati, and Columbus. However, Ohio's largest public transit service is the Greater Cleveland Regional Transit Authority (RTA), which operates a bus and rail system in the Cleveland area. While major urban areas have the most robust systems, smaller cities and suburban counties also have public transit options, though on a smaller scale.
  • Property tax rate: Ohio's property tax rates vary significantly by county and region. The average rate is around 1.52%, slightly above the national average. In some counties, like Cuyahoga and Franklin, rates tend to be higher due to property values and local taxes, so it's essential to research property tax rates to ensure they align with your budget.

Type of Home

There are many types of residential homes to consider when buying in Ohio, each offering different advantages depending on your needs and preferences. Even if you're set on a specific type, like a single-family dwelling, you'll find various options to explore.

Here are some types of homes you may encounter when home buying in Ohio:

  • Single-Family homes: Single-family dwellings are the most popular choice for homebuyers in Ohio, particularly in suburban and rural areas. Single-family homes offer privacy, space, and the freedom to make modifications. However, owning a single-family home means taking full responsibility for maintenance, from lawn care to home repairs and paying utility bills.
  • Condominiums: In Ohio's urban centers like Columbus, Cleveland, and Cincinnati, condos are a common choice for those seeking a lower-maintenance lifestyle. Condos often include gyms, pools, community spaces, and other shared amenities. However, they also include monthly homeowners' association (HOA) fees for maintenance and services, and there may be HOA rules to follow.
  • Townhomes: Townhomes in Ohio are a popular option for first-time homebuyers, as they are often more affordable than single-family homes and still offer some private space. They typically require less outdoor maintenance, as many are part of communities that handle landscaping and upkeep. While townhomes balance cost and convenience, they may have less space and privacy, with shared walls and smaller yards.
  • Manufactured and Modular Homes: These homes are a more affordable option for buyers, especially in Ohio's rural areas. Manufactured homes are built in factories and transported to permanent locations, while modular homes are constructed in sections and assembled on-site. Both offer the look and function of a traditional home but at a lower price point. Manufactured homes can be ideal for buyers on a budget, although they may have fewer customization options.

The Ohio Home Buying Process

There are generally several steps involved in buying a home in Ohio:

  • Obtain a prequalification letter.
  • Work with a local realtor.
  • Make an offer on your dream home.
  • Schedule a home inspection.
  • Close on the home.

Financing Your Ohio Home Purchase

Financing Your Home Purchase

In Ohio, homebuyers have many financing options, including traditional mortgages and government-backed loans, each designed to meet various needs and goals.

Traditional Mortgages

When it comes to traditional mortgages, homebuyers in Ohio can select between fixed-rate and adjustable-rate mortgages (ARMs), each with distinct benefits:

  • Fixed-Rate Mortgages: These are ideal for homebuyers planning to stay in their home for a long period. Fixed monthly payments and a consistent interest rate throughout the life of the loan are the main benefits of a fixed-rate loan option, providing predictability and financial stability.
  • Adjustable-Rate Mortgages (ARMs): ARMs offer a lower initial interest rate, which may increase over time based on market conditions. Though this may be risky for some, an ARM can be attractive for homebuyers who expect to sell or refinance in a few years or when interest rates are predicted to decrease.

In Ohio, popular mortgage lenders include regional and national banks like Huntington National Bank, Fifth Third Bank, and KeyBank. Local credit unions and community banks also provide competitive rates and personalized service.

Government-Backed Loans

Ohio homebuyers may qualify for several government-backed loans, including:

  • FHA (Federal Housing Administration) Loans: A popular option for first-time homebuyers, FHA loans offer lower down payments and more flexible credit requirements.
  • VA (Veterans Affairs) Loans: VA loans are available for veterans, active-duty service members, and their families. They offer competitive interest rates and require no down payment.
  • USDA (United States Department of Agriculture) Loans: Available in rural and some suburban areas of Ohio, USDA loans offer zero down payment and low interest rates.

Down Payment Assistance Programs in Ohio

Ohio offers various down payment assistance programs through the Ohio Housing Finance Agency (OHFA). The Your Choice! Down Payment Assistance program provides up to 5% of the home's purchase price for down payment and closing costs. Additionally, local counties and cities may have specific assistance programs, so checking with local housing authorities is crucial.

Home Insurance in Ohio

Home Insurance in Ohio

Ohio's average annual cost of homeowner's insurance is roughly $1500, well below the national average. However, rates vary significantly based on location, with higher premiums in areas with higher construction costs and more susceptible to crime and severe weather. Although Ohio does not legally require home insurance, most mortgage lenders will mandate that borrowers carry a policy to protect their investments.

Home Buying Challenges

While Ohio's housing market is generally affordable, several challenges can arise for homebuyers, including:

  • Rising home prices: In cities like Columbus and Cincinnati, demand has driven up home prices, making it more difficult for some buyers to find affordable options.
  • Limited inventory: Certain areas, especially growing suburban regions, are experiencing a shortage of available homes, increasing buyer competition.
  • Older housing stock: In some parts of the state, particularly in industrial cities like Cleveland and Toledo, homes may be older and require significant repairs or updates.

How to Navigate the Ohio Home-Buying Journey

Purchasing a home in Ohio offers numerous benefits, but requires careful planning due to market fluctuations and localized challenges. Thanks to its diverse living environments, Ohio is an appealing state for a wide range of buyers. A strong job market and affordable housing make Ohio attractive, but rising prices in competitive regions may pose difficulties, particularly for first-time buyers.

Prospective homebuyers must stay informed about local housing trends, assess their financial readiness, and work with an experienced realtor to navigate the complexities of the market. Research is the key to success in Ohio's housing market, so it is important to consider factors like proximity to work, access to amenities, and local property taxes when deciding on the right home.

Ohio's real estate market presents excellent opportunities for homebuyers. With the right strategy and support, buyers can find a home in The Buckeye State that meets their needs and budget.

Instant Access to Ohio Property Records

Home Buying Guide

Instant Access to Ohio Property Records

  • Owner(s)
  • Deed Records
  • Loans & Liens
  • Values
  • Taxes
  • Building Permits
  • Purchase History
  • Property Details
  • And More!

Instant Access to Ohio Property Records

  • Owner(s)
  • Deed Records
  • Loans & Liens
  • Values
  • Taxes
  • Building Permits
  • Purchase History
  • Property Details
  • And More!

Instant Access to Ohio Property Records

Home Buying Guide

Ohio Property Resources