Sales in the housing market in Ohio increased in September with low home prices helping to spur growth, The Cleveland Plain Dealer reported. The national market for homes also saw gains thanks to solid investor activity, with a 2.4 percent increase in existing home sales in the U.S. in September compared to August, according to the National Association of Realtors. As more investors look to buy homes in the state, like Cleveland investment properties, they could jump at the chance to buy a home at a low interest rate and profit when the property values rise.
“Low interest rates and price gains holding steady led to September’s healthy increase, even with investor activity remaining on par with last month’s marked decline,” Lawrence Yun, chief economist for the National Association of Realtors, said in a written statement.
According to the Ohio Association of Realtors, existing home sales in the state reached 134,397 in September, which is very close to the sales volume in the same period last year. The average sales price for Ohio homes reached $150,939 in September – less than half of the average national price for homes at $313,200, according to the U.S. Census Bureau.
Future of Ohio real estate
The Plain Dealer suggests the Ohio real estate market did better than other areas in the Midwest, which shows that Cleveland investment properties continue to be popular among investors. With these low prices, investors are likely to see greater returns of investment if they buy properties for lower than the national average, renovate them and rent them out.
The future of the real estate market in Ohio appears to be bright as September sales this year hit their highest level for the month since 2006, according to OAR.
“Through the three-quarter mark of 2014 the Ohio housing market has been able to display modest stability in the overall level of sales activity and healthy growth in pricing,” said OAR President Chris Hall. “It’s evident that we’re continuing to make significant progress in re-establishing a solid foundation for the state’s housing sector.”
Ohio cities like Cleveland are seeing a resurgence in manufacturing and other major industries that could help increase employment and economic growth. With more demand for housing potentially on the rise in Cleveland and other parts of Ohio, investors could benefit from working with a real estate investment firm to choose and manage their properties.