Columbus Real Estate Market Trends for 2025: What Homebuyers and Sellers Can Expect

Despite housing prices cooling off in many parts of the U.S., Columbus, Ohio has remained a hot spot for real estate in 2024, and industry experts predict that this momentum will carry into this year, 2025.

"I personally feel in Columbus, we'll see a 4 to 6% increase in sales prices. We'll see maybe an uptick in inventory. Hopefully, we'll see things like LinkUs downtown bring more construction, and with that more importantly, more affordable housing construction," says Shaun Simpson, a local realtor.

According to Simpson, the dynamics of supply and demand are key drivers of the market. He expects demand to grow even more as major projects like Intel's development progress, which will eventually bring thousands of new workers to the area.

"We have and those projects haven't even seen 90% of their employees come to town. When those projects get up and going, and they have been delayed quite a bit," he explains.

Currently, homes in Columbus are selling at or above their asking prices, although Simpson notes that some properties are taking longer to find buyers, particularly if they aren't in ideal condition.

"We aren't seeing a stagnant market, but we are seeing things that aren't sell-ready, not moving," Simpson comments.

In response to the ongoing competitive market, Allie Whitley, president of Ohio Realtors, advises prospective buyers to come prepared. "Make sure you contact a lender that can pre-approve you. If you are a cash buyer, which we see a lot of cash buyers out there, do expect that you will be asked for proof of funds. That's not unusual, but have that ready for you because if you go in there and you make an offer today, the sellers like to see that right away and they can accept your offer right away."

Whitley also advises potential homebuyers not to wait for interest rates to drop, as they are likely to remain stable for the time being. "Any time of the year, all year round, people have a need to buy and sell real estate. And if a person has a need to purchase, it doesn't matter if it's, you know, January or March, they are going to be ready to purchase. You may see fewer people looking at your home, if you're a seller, fewer people during a blizzard, right, looking at your home, but those ones that come out in that snow, they are serious buyers and they are ready to go."

Beyond the challenges faced by buyers, Simpson also highlights rising costs for homeowners, which are contributing to local tax increases and influencing sellers' decisions. "The home price isn't as important as the payment and we are seeing a lot of increases in taxes and increases in insurance," he states.

What This Means for Columbus Homebuyers and Sellers

With rising interest rates and increased competition, homebuyers in Columbus must be ready to act quickly and ensure they're financially prepared. As Simpson notes, the completion of major development projects like Intel's expansion could further drive demand for housing in the area. Additionally, the anticipated increase in affordable housing construction, particularly in areas like downtown Columbus, could help balance the market.

For sellers, understanding the impact of rising costs and taxes is crucial. While homes are still selling quickly in this hot market, they need to be in prime condition to compete. Properties that aren't "sell-ready" are taking longer to move, so home preparation remains a key factor in getting top dollar.

The ongoing demand for housing, especially in a growing city like Columbus, suggests that the market will remain strong through this year, 2025. However, both buyers and sellers must be mindful of external factors like interest rates, taxes, and the local economic climate to make informed decisions.