Ohio Land for Sale: Is the Market Still Ripe for Growth? Monday, February 26, 2018
Ohio land for sale data for 2017 have been tallied, and all indicators are showing an extremely positive trend that is likely to continue through 2018. For instance, undeveloped land is becoming more and more attractive for investors after a favorable report from the Ohio Association of Realtors.
Figures from the report reveal that home sales reached historical levels in December 2017. The incredible sales numbers, coupled with a low inventory of new homes, are enticing to professionals in the commercial real estate industry upbeat about purchasing land in Ohio.
As the chart below illustrates, Ohio home prices continue to trend upward and may eventually approach the point where many may not be able to afford a previously-owned home. How does the spike in housing prices affect Ohio land for sale? More housing developments are needed, leaving the door wide open for developers and investors to fill the gap.
What Does Low Inventory Mean for Ohio Land for Sale?
A large contributing factor for the rise in home prices during 2017 was the low amount of inventory available. Low inventory and high demand is the signature of a seller’s market. Don’t believe it’s time to sell? Consider this: Homes under contract in November 2017 not only proved to be the best ever for the month, but a record high for any month ever.
Not surprisingly, low inventory is not unique to homebuyers. Commercial real estate had been suffering from scarcity of space for years; however, new construction projects and a slew of store closures have caused an increase in the vacancy rate. The Central Ohio Commercial Retail Report for the third quarter of 2017 noted a vacancy rate increase for retail at 6.4% compared to 5.2% in the third quarter of 2016. That said, asking rents still displayed positive growth; a sign that landlords are not concerned about filling their empty storefronts and big box establishments.
Another good indication of a favorable commercial real estate climate is the number of construction projects throughout the state of Ohio. In January 2018, WOSU Radio reported on the shortage of construction workers despite the boom in building projects. And, in August 2017, Columbus Business First noted a forecast by the Associated General Contractors of America that more construction is likely to happen. Hospitals, multifamily residential, retail, and warehouse space are all expected to lead the upswing.
Columbus and Cincinnati Chasing Other Midwestern Cities for Top Spot
According to a December 2017 report from listing website Trulia, Columbus and Cincinnati will prove to be some of the hottest real estate markets in 2018. Columbus had already garnered some attention when it surpassed Indianapolis as the 14th largest city in the United States. Additionally, with the list of finalists for Amazon’s HQ2 including Columbus, the market seems to support the fact that prices will continue to rise and inventory will dwindle. For an investor or homebuyer who is contemplating investing in local land for sale, the time has never been better.
Buying or Selling Comes Down to Fundamentals
One of the most significant 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 November 2017 study by the financial website GoBankingRates.com, Ohio ranked second in a list of states where Millennials can actually afford to buy a home. The study cites Toledo’s cost of living as 25% below the national average.
The biggest question is: What does this all mean? With historically low borrowing rates still a reality, there is a lot of room for housing prices to continue to increase. More people will call Ohio home as they discover the relatively lower cost and a higher standard of living in Ohio. As such, a land investor or developer may want to consider establishing roots in the area by prospecting Ohio land for sale opportunities.
Additionally, as people continue to move to Ohio for the affordability of the area, there will inevitably be an increased demand for commercially available services. In 2017, residents witnessed the opening of the IKEA, the expansion of Spirit Airlines at Columbus International Airport, and the groundbreaking of Facebook’s $600 million data center project. With business activity on the rise and a spike in population on the horizon, land for sale couldn’t be a better investment.
Benefits for Ohio-Based Homeowners or Building Owners
You’ve made an excellent choice to invest in your home or building. The value of your property is increasing, and it’s likely to do so for years to come. Any improvements that you wish to make, including renovations, are expected to yield a positive return on investment.
Benefits for Ohio Land Buyers
You, too, have made an excellent decision to purchase land in Ohio. The value of your property is increasing significantly year-over-year. If you are facing retirement or would like to diversify your Investments, it is the quintessential seller’s market. Although prices are likely to continue to climb, having land for sale in a hot market is almost always considered a good idea.
If you do choose to sell land, make sure that you partner with reputable land brokers or a CRE firm. Ideally, they’ll have the most connections to land buyers and others who are looking to purchase land. Connecting with a commercial real estate firm will streamline your efforts. Typically, a CRE firm provides a variety of services, including commercial appraisal services. A land appraisal will ensure you gain a maximum return on investment for your Ohio land contract.
Ohio Land for Sale: Invest, Develop, and Hold for the Long-Term
Based on all the information we have today, it is clear that the last few years have been a great 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 considering solid investment choices, the most common advice is to get in as early as possible and hold for the foreseeable future. You may never hit the nail precisely on the head when it comes to market entry, but take advantage of an opportunity when you see one available. For those lucky enough to identify an opportunity when they see it, the timing couldn’t be better.
Ohio Land Investors: Short-Term Buy and Sell
For those people who are not a fan of long-term investments and would prefer to make their money quickly 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 consistently listed as one of the top real estate markets in the country. While most economists and pundits say 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 land will disappear. If you are a transient 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.
Aim for the Best ROI – Hire a CRE Expert
If you hope to get the best return on investment from your acreage for sale in Ohio, it’s a good idea to work 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 largest pool of land buyers possible. Combining expertise and exposure will almost guarantee that you maximize your return on investment. Doing so will 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 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 you are seeking. They will likely be aware of properties that are due on the market, as well as those currently listed. By casting the widest net possible, you are likely to find the property that best meets your wants and needs.
Central Ohio’s Trusted CRE Firm Since 1938
With 80 years in the Central Ohio commercial real estate market, The Robert Weiler Company has a deep understanding of office space, retail space, warehouses, land, or farms for sale. 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 unrivaled. Contact one of our land brokers today at 614-221-4286 to find out why buying or selling Ohio land for sale through The Robert Weiler Company is a smart decision for you.