Columbus Home Inventory is Increasing, but Not Quickly Enough, Real Estate Agents Say

Finding available housing in Central Ohio was a major headache for potential home buyers and their real estate agents last year, but there’s reason for some hope in 2024. As 2023 closed out, builders had constructed about 8,500 new homes, according to the Building Industry Association of Central Ohio. 

While that figure falls well short of the association’s goal of 14,000 new units, the region did experience about a 10 percent increase in new listings and inventory from November 2022 to November 2023, says Patti Brown-Wright, last year’s president of the Columbus Board of Realtors. “It’s small, but this market needs more inventory to keep up with the pace,” she says. “There are plenty of interested buyers out there. They just need more choices.” 

As in the past, the area is most likely to remain a solid seller’s market throughout the year, especially in light of all of the new development—like Intel—targeted for Central Ohio. Columbus is ranked 53rd in the top 100 largest U.S. metro areas “ready for growth” in 2024 by Realtor.com. Toledo comes in as No. 1.  

Affordability is another concern for buyers here, where prices have increased substantially over the past five years. By last November, the median home price in Columbus was about $260,000, trending up nearly 8 percent from the previous year. But Redfin offered a slightly uplifting forecast for home hunters: Prices will fall by 1 percent in the second and third quarters during the sweet spot of the market’s season. 

Additional good news indicates that mortgage rates, which peaked at about 8 percent last year, will also decline. Lawrence Yun, the chief economist for the National Association of Realtors, projects a 6.3 percent average for 30-year fixed rate mortgages in 2024. “I think this spring is going to get crazy because hopefully by spring, rates will be down by a point or so,” Brown-Wright says. 

The NAR is also predicting that new home sales will be up 19 percent nationally and existing home sales will be up by 13 percent this year, a trend Central Ohio is expected to follow, Brown-Wright says. 

For those considering a home purchase, the first important step is to get their financing lined up to have a clear view of what is affordable, Brown-Wright advises. “I always recommend not spending any more than 30 percent of an annual income on a mortgage,” she says. 

And as inventory is likely to remain low this year, buyers might consider expanding their horizons. “I would say be open to other neighborhoods and possibilities,” Brown-Wright says. “The more set you are on one particular suburb or neighborhood, the tougher the home search will be.” 

This story is from the February 2024 issue of Columbus Monthly.