Ohio land for sale couldn’t be hotter. As home prices continue to climb to record levels through 2016, it’s easy to understand why the Ohio land for sale has become so attractive, whether you’re a homeowner, property manager, or commercial real estate investor.
With an extremely low inventory of new homes coming onto the market, this is making the prospect of buying farms for sale, or any land for that matter, more and more attractive to many in the commercial real estate industry – as a developer, property manager, or investor. As the chart below illustrates, if this trend continues, home prices are going to be inflated to the point where many may not be able to afford a previously-owned home, leaving the door wide open for developers to fill the gap.
A large contributing factor in the rise in home prices for 2016 is the low amount of inventory available for homeowners to choose from. Any property manager will tell you that this is the definition of a seller’s market. Don’t believe it’s time to sell? Consider this: the amount of time a home is on the market has dropped from 47 days to 35 days. Without an influx of new homes being built on Ohio land for sale, the trend of decreasing inventory is likely to continue.
Not surprisingly, the low inventory problem is not unique to homebuyers. The same trend is being duplicated in the commercial real estate space, too. From big box stores to independent mom-and-pop shops, commercial activity is on the rise and vacancy rates are dropping. Not only are prices for housing and land for sale in Columbus Ohio increasing, but rental lease rates are, as well.
Take the Central Ohio Commercial Retail Report for the second quarter of 2016 as an example of the inventory problem within commercial real estate. Columbus REALTORS® reported a net positive absorption of 610,324 square feet of inventory. Over half of this absorption was due to large box stores opening, as well as grocery stores and a casino. The second quarter of 2016 vacancy rate declined from 6.2% to 6% when compared to the first quarter of 2016; and declined from 6.6% when compared to the second quarter of 2015. This trend is extremely encouraging for landowners of Ohio land for sale who are looking to expand their commercial offering; it’s also encouraging for those looking to invest in vacant farms for sale.
According to the latest report from listing website realtor.com, Columbus was the nation’s 11th hottest real estate market in June 2016, and the 6th hottest real estate market in July 2016. Only three locations outside of California were able to crack the top ten. With most locations only moving up or down one spot at a time, the jump for Columbus Ohio is considered very large. From prices rising and inventory of homes and farms for sale dwindling, this is a trend that is likely to continue for some time. For an investor, homebuyer, or property manager who is contemplating investing in acreage for sale in Ohio, the time has never been better.
One of the largest contributing factors in Ohio’s recent housing and commercial real estate sector growth is the affordability of living, relative to wages earned. According to a new study by the financial website gobankingrates.com, residents of Ohio would only have to work 30.76 hours per month to afford their homes. This is, by far, the lowest number of hours required in the country. Higher wages and relatively lower home prices had the most dramatic effect on this calculation. Comparatively, a homeowner in Hawaii must work 88.13 hours per month in order to afford their home.
The biggest question is: What does this all mean? With lower borrowing rates here to stay, it means that there is a lot of room for housing prices to continue to increase. As more people discover the relatively lower cost and a higher standard of living in Ohio, a family, investor, or property manager might consider establishing roots in the area and the fact that recent price increases are likely to continue.
But what does it mean for a developer, property manager, or landowner? As people continue to move to Ohio for the affordability of the area, this will also increase the demand for commercially available services. Recently, residents witnessed the opening of the Tanger Outlets, several shopping centers, and a casino. With commercial real estate vacancy rates dropping and an increase in population on the horizon, the value of farms for sale (whether commercial or otherwise) is likely to spike.
You made an excellent choice. The investment in your home or building was a good one. The value of your house or building is increasing and it’s likely to do so for years to come. Any improvements that you wish to make, including renovations, are likely to yield a positive return on investment.
You, too, have made an excellent choice. The value of your Ohio land for sale is increasing significantly year-over-year; and if you are facing retirement or would like to diversify your Investments, now would be an excellent time to sell. Although prices are likely to continue to climb, selling your farms for sale in a hot market is almost always considered a good idea.
If you do choose to sell your property, make sure that you partner with a firm that is reputable and has the most connections to those who are looking to buy farms for sale. Connecting with a commercial real estate company will ensure you maximize your return on investment and leave you with the confidence in knowing you made the absolute best decision.
Based on all the information we have today, it is clear there’s never been a better time to invest in land in Ohio. For those looking for a long-term investment vehicle, land in Ohio is the best choice. If you are an investor or property manager considering long-term investment choices, the most common advice is to get in as early as possible and hold for the long term. What most people don’t consider with long-term investments is trying to hit the nail on the head, in terms of market entry. The reason this isn’t talked about often is because the ability to recognize such an opportunity is rare. These limited windows of opportunity are actually atypical. They don’t happen very often, but for those lucky enough to recognize an opportunity when they see it, the timing couldn’t be better.
For those people who are not a fan of the long-term investment and would prefer to make their money and get out of the market, now is the time to act. We’ve seen the increases happen in the last couple of years, and Ohio is now hitting the top of the list, as far as hot housing markets are concerned. While this trend is likely to continue for the next several years, it won’t last forever. At some point, the market will plateau and the opportunity for significant short-term gains from your homes or farms for sale will disappear. If you are a short-term investor, the longer you wait, the lower your return on investment. If you’d like to take advantage of this significant opportunity but are unsure how to approach the situation, there are commercial real estate experts available to help you.
If you hope to get the best return on investment from your Ohio land for sale, it’s a good idea to deal with experts in the field. And, if you want to sell your land quickly, it is in your best interest to showcase your property to the biggest pool of buyers possible. Combining expertise and exposure will almost guarantee that you maximize your return on investment and give you the confidence in knowing you achieved top dollar for your property.
Conversely, if you are considering investing in Ohio land for sale, you need to be working with commercial real estate experts to ensure that you’re looking at all available properties that match your criteria. An experienced expert, with a wealth of local knowledge, can help you find the exact type of property that you are seeking. They will likely be aware of properties that are coming up for sale, as well as those currently listed. By casting the largest net possible, you are likely to find the property that best meets your wants and needs.
With close to 80 years in the Central Ohio commercial real estate market, we know how to find you the perfect office space, buildings, land, or farms for sale that will suit your investment needs. Whether you are looking for a long-term development option or a short-term investment vehicle, we know the properties; we have the experts; and our service and dedication are unmatched. Contact one of our agents today at 614-221-4286 to find out why buying Ohio land for sale through The Robert Weiler Company is a smart decision for you.