Historically low mortgage rates and the pent up buyer demand keeps Dayton OH house prices soaring. Despite the spread of the pandemic prospective home buyers have been flocking to the market in almost every major U. S. city. Navigating the competitive seller’s market is not easy and requires certain buyer’s considerations.
House Prices and Sales – 2020/2021 Real Estate Update
In the month of November 2020, the number of real estate sales went up by 14.2% in the state of Ohio when comparing with the same month in 2019. Between January and November in 2020 the sales activity in Ohio markets went up by 3.1% when comparing to the same period in 2019.
The Dayton area real estate market has been one of the most active markets in the state. In November last year the number of real estate sales in our local market was up by 19% in comparison to November 2019. Between January and November of 2020 there were 15,787 units sold in the area which is up from 15,265 sold in 2019. The Dayton OH house prices were 10% higher in November 2020 than in November 2019. The average sales price reported for January through November in 2020 was $196,644 in the Dayton area which is 10.9% higher than during the 11 month period in 2019.
The latest real estate forecasts suggest the home price appreciation may increase by 5.9% on average in 2021 across the nation. Ultra-low mortgage rates and recovering job markets continue to motivate home buyers to search for their dream home. Additionally, the pandemic has made many couples and families appreciate the advantages of homeownership. The spending has shifted towards housing with buyers looking for larger homes with spacious backyards.
Home Buying Considerations
With pressure to find a new house and low housing inventory it’s easy for some buyers to grab the first good deal they stumble upon. However, as many real estate professionals will tell you the house you’re planning to purchase is just as important as its location. The notion of “location, location, location” matters even more in the times of Covid-19.
“Location, location, location”
Good home location may mean different things to different people. However, your house is your investment and if you’re hoping to sell it one day and make some profit you need to make sure your home location can appeal to a wide array of buyers.
When you’re looking for your future home make sure you spend some time learning about the neighborhoods. A great neighborhood which attracts most home buyers can be characterized by these three elements: accessibility, appearance and amenities.
With so many people working from home nowadays you may think accessibility is not such a crucial aspect of good home location as it used to be. However, working from home is not possible for many professions and a few years from now this trend may shift again. You should look for a neighborhood with easy access to the city’s major transit routes as well as public transportation.
Neighborhoods with large trees, beautiful views, great quality landscape, located close to parks or walking trails are most desirable for buyers. Close proximity of grocery stores, playgrounds and restaurants offering take-outs are also important. When looking for home ask your agent about local schools. Even if you don’t have and/or you’re not planning to have kids keep in mind most buyers care about the level of education available in the area they think about moving to.
Your exclusive buyer agent can also help you determine how long over the years houses have stayed on the market in a particular neighborhood. If that time period has been short on average you know people find the area very attractive. Last but not least, inquire about the crime rate in the area. People wish to live in a welcoming neighborhood where they can safely take a walk in the evenings and spend time outdoors.
It’s a good idea to find out what future developments, if any, are planned in the close proximity of the neighborhood you’re interested in. Upcoming projects such as a new school, medical facility or an entertainment venue can greatly improve property value in the area. At the same time, if your new home may be located in the future next door to a school, a hospital or a gas station it’s value can greatly depreciate. No one likes to live in a noisy neighborhood with lots of traffic.
Many first time home buyers looking for a property in our local market tend to focus more on the Dayton OH house prices without giving much consideration to the value of the lot. Imagine a scenario where you found two houses you liked with very similar price tags. The only difference is one of the houses, located on a larger lot, needs some work to be done, whereas the other is move-in ready but located on a very small lot. Many home buyers would choose a house which doesn’t require any work but this approach would not be a smart investment.
A house is an asset which depreciates in value over time. A lot maintains its value or can even increase in value relative to the house. A fixer-upper property can always be improved or replaced all together but the size of your lot will always stay the same.
Navigating a seller’s market requires lots of experience and knowledge of the area. At Buyer’s Corner Realty we help home buyers finding the best deal on the home of their dreams which will fit their budget and their lifestyle, and it will be a great investment for now and in the future.
If you have questions about the Ohio real estate market, Dayton OH house prices or any other housing related matter, please contact us today at 937-433-6838 or send us a message!