Learn the hidden truth about the Northwest Ohio luxury home market.
Let’s address a common question: What’s wrong with the luxury housing market in Northwest Ohio?
First, let me assure you, there’s nothing inherently wrong with it. In fact, the market is simply undervalued compared to the rest of the country. Recent nationwide press highlighted that the most expensive 5% of listings in April 2020 had an average price of $324,000, and by April of this year, it was only $335,000. This is a mere 3% increase over three years, which is quite modest. To put it in perspective, the number of listings above $335,000 in April was just 18. While lower-priced homes in Northwest Ohio have seen a 10% increase in the last year, luxury homes have not appreciated at the same rate.
This means that you can’t find a cheaper market to buy a luxury house than Toledo. The article I’m referencing pointed out that in Toledo, you can purchase a luxury home for less than the national median price of $430,000. The most expensive 5% of home listings in Toledo start at $336,000. This offers sprawling houses and sizable lots with classic Midwestern charm, all for prices lower than the average median price in the rest of the country.
It’s important to note that this does not mean high-end homes have decreased in value or are bad investments. They just don’t compare dollar-for-dollar with the price rises we’ve seen in rental properties, low-end houses, and medium-end suburban homes, which have surged in value.
It’s never been harder to hire a builder, find land, and pay for a brand-new luxury home. Those prices are through the roof, suggesting that prices for existing luxury properties in Toledo should be rising rapidly. However, this isn’t always reflected in the market.
It can be surprising for buyers moving here from cities like LA, DC, Seattle, or San Diego. They often transition from small 1,500-2,000 square foot homes worth less than the 3500 square foot mansions on large lots they find here. They are amazed at our vast lots, trees, and spacious homes, which are affordable compared to their former million-dollar properties.
If I analyze zip codes, only areas like Perrysburg, Whitehouse, and Monclova show average home prices over $300,000, which are near the median price of the rest of the country. This suggests that prices in the upper 5% of home values in Northwest Ohio are poised to rise significantly due to inflation, income increases, and a shortage of available homes.
The real estate market is constantly evolving. My team and I are ready to help you handle these changes and solve your real estate problems with our tradition of trust and proven principles. If you have any real estate questions, or if you’re looking to buy or sell, just call us or send an email.
