While the seemingly only constant over the past six months is that absolutely nothing has remained the same, the real estate market has stayed remarkably steady … and dare we say, hot.
According to the National Association of Realtors, existing home sales continued to climb throughout August, with no signs of slowing as we move through October. While economists had expected home sales to rise 3.2% in August, on an annual basis sales rose 10.5% in August, putting this summer’s housing market well ahead of last years. With more people working from home, it seems many have sped up their plans to purchase a home, whether existing homeowners or new buyers.
In its monthly analysis of the job market and its impact on real estate, Realtor.com economists point out many signs that are positive for sellers and the housing market in general. They specifically point to a bounceback of consumer confidence and higher consumer spending, steady mortgage rates, and the fact that September homes are actually spending less time on the market than those listed in August.
While the real estate market typically turns into a buyers market as the calendar flips to October, and many view it as the best time of year to buy a home, 2020 has – of course! – changed the narrative. Due to the impact of the pandemic, buyers are finding themselves in one of the most competitive and challenging housing markets in recent memory.
Just like the rest of the country – and perhaps even more so – the real estate market in Ohio remains very strong. Ohio REALTORS note that they have seen gains in home sales activity and home sales price throughout the state due to a slash in interest rates and shifts in consumer attitudes. It seems working and schooling from home, and a general increase in the amount of time spent home are driving people to consider a new home purchase.
The hot real estate market seems to be true regardless of which part of Ohio you look at. Two of the top 50 hottest ZIP codes in the U.S. are in Ohio (Reynoldsburg in Central Ohio, and Dayton), and the Cincinnati area is the most competitive market in the state, and the 27th most competitive in the country.
The strong real estate market is not limited to residential sales. Central Ohio’s industrial market has been strong for years, and it is showing no sign of slowing due to the pandemic. The 3rd quarter warehouse market was particularly active, with eight projects breaking ground for a total of four million square feet, and 9.2 million square feet still under construction.
In Cleveland, Amazon is single-handedly impacting the industrial real estate market with its aggressive purchasing of warehouse and distribution space. With a total of 2.2 million square feet of warehouse space, Amazon’s three projects are the largest buildings that have been constructed in the past five years. The question is whether this will result in other companies doing the same.
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