If you have anything to do with real estate, it must be clear to you that Central Ohio housing market is red hot at the moment. You may have also read reports about sky high prices of homes in Columbus and wondered what’s going on there. The fact of the matter is that demand for homes in this region is far ahead of supply. Buyers are not getting new homes and they are lapping up whatever is coming on the market. In fact, homes are sold in no time at all after being listed on the market.

 

Prices of houses in highly desirable neighborhoods of Columbus have appreciated by more than 50% in the last 5 years. It is hard to believe that houses in Clintonville, Bexley, Upper Arlington, and Grandview have become so expensive in a short period of time. However, it would be wrong to assume that housing market is hot only in these posh localities of Columbus. Demand for affordable homes is pushing prices of houses even in middle class neighborhoods like Whitehall, Franklin Park and Olde Towne East.

 

There are some experts who feel that the housing market of Columbus is a victim of the fast economic growth of the metro city. Job scene is great and income levels are rising. People have a desire to move to Columbus because of low unemployment rate and access to all modern amenities. The rate of influx of migrants is higher than the rate at which houses are being built. This has pushed the demand for housing up and the prices of homes have consequently gone up.

 

Last year, 18600 new jobs were created in Columbus MSA. However, only 8249 new homes were built in the same period. These included not just entry level 1 bedroom apartments but also the luxurious $2 million villas. According to experts, housing market of a place is said to be in a state of balance if 1.25 to 1.5 jobs are created for every new residential unit added to the housing market. But in 2016, nearly 2.25 jobs were related for every new household in Columbus. As such, Columbus MSA qualifies to be called an underserved housing market.

 

Increasing the misery of the buyers is the fact that very few of the existing homes are coming to the market. Only 4286 houses were on the market in February 2017. This is more than 21% less than the number of houses on the market in February 2016. The result of low inventory and increased demand is skyrocketing prices of homes in the area. Realtors say that this unusually high demand has created a situation where homeowners are getting multiple offers in less than 24 hours of putting their homes on the market. His has given birth to a feeling of frustration among the buyers as they are unable to buy homes despite getting involved in a bidding war with other buyers.

 

According to experts, nearly half a million new homes are needed in Columbus in the next decade or so to bring semblance of stability in the housing market.