Central Ohio home prices continue to outpace wage growth
As a local real estate agent, one of the things I enjoy most is working with a new home buyer to find and purchase their first home. The day they get their keys is an extraordinary occasion, and I am proud to be part if it.
Unfortunately for many Americans, this day is a distant reality in the current home market. Home affordability continues to decline, as prices rise faster than wages and since the housing debacle of 2008 - 2010, national home prices have risen 75%, with wages only increasing by 13%. In fact, out of all the major markets across the country, 64% have salaries that cannot keep up with the rising cost of housing.
Central Ohio has traditionally maintained an affordable price to income ratio, but there are areas in our backyard where home affordability is already at a critical mass. Delaware County with a median home price of 290k is one of the most lopsided data points to consider. Home prices were up 9.3% in 2018 with wage growth at 2.8%.
Franklin County is also in bad shape with 2.6% wage growth and a 6.9% increase in home prices. I can tell you from days and days spent helping families find a home in the Columbus area, and there is not much available for a family on a budget.
Licking County has a better ratio but still in the red with home prices at 3.9% and wages at 1.7%. Here, median home prices are $140k.
If you are a home buyer, how do you beat this trend and get the house you want, at the price that makes sense? One way is to focus on the essential things in the home (not wood floors or stainless steel appliances) and be willing to use a little patience and vision. With products like the FHA 203k loan, you can buy a home in need of repairs (generally at a discount), add in needed repairs or upgrades and wrap them all into the initial loan. This type of loan eliminates a lot of out of pocket cash and allows you to avoid the upgraded homes selling out of your budget. After all, it's not hard to buy a stainless steel fridge, but you will never be able to change the location.
Are you interested in finding your next home and use a 203k loan? Contact me today for a no obligation sit down. We can review your budget, goals, and timeline to map out a plan that makes sense to your family. Buying a home is a big commitment. You need an agent that thinks differently then most if you want to have a market advantage. Contact me today.
