Will a Recession Mean a Columbus Housing Bust? - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Will a Recession Mean a Columbus Housing Bust?

Columbus housing bustGloomy financial news has caused a drumbeat of recession predictions among economists, but Columbus buyers and homeowners should not fear a housing bust. Here are several reasons why Central Ohio’s housing market can withstand an economic downturn.

1. Strong home equity. According to CoreLogic, Ohio homeowners gained an average of $27,000 in equity so far in 2022. This is after the $21,600 in equity gains generated between the first quarter of 2020 and the first quarter of 2021. Meanwhile, the share of homes with negative equity dropped to just 2.4% of all active mortgages.

2. Tighter credit standards. Since the Great Recession, home buyers have faced stringent criteria for mortgage approval.

3. Less creative lending. Gone are the days of stated income mortgages, financed down payments and 100% equity loans. While tailored solutions still exist for well-qualified borrowers, they are not broadly issued to the masses.

4. Employment. Central Ohio is home to dozens of national headquarters in a variety of industries. We are the Midwest’s tech center, and one of the fastest-growing tech hubs in the country. Intel is the latest to announce development plans, which will bring 3,000 new jobs.

5. Less speculation in home building. Builders have been cautious during the past decade, which is among the many reasons home supply remains constrained.

We do not have the perfect storm of risks that led to the housing bust of the past. Still, a recession would bring some hardships. Home buyers who buy wisely, and avoid over-paying for a home, are best equipped to handle changes in the economy.

As Exclusive Buyer’s Brokers, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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