The Toledo real estate market has emerged as one of the hottest investing markets in 2016. The first-half witnessed a concoction of elements swing in favor of Toledo real estate, including home prices and appreciation rates, coupled with an improving economy and one of the more affordable housing markets in the country. Although home prices remain below the national average, the Toledo real estate market continues to exhibit the traits of a promising market for investor opportunity. That said, the trend should continue in the second-half of 2016, as the Toledo real estate market is poised to experience another half of positive gains.
Toledo, OH Real Estate Market Statistics:
Nicknamed Glass City for its thriving glass industry, appreciation rates for Toledo real estate remain sharp. The Toledo real estate market saw one-year and three-year appreciation rates of 13.9 and 34.7 percent during the second quarter, compared to the 4.9 percent and 17.8 percent achieved by the national average. For Toledo real estate investors and homeowners, price appreciation and principle payments in the last three years have boosted total equity growth since the recession. For those considering Toledo real estate investments, the following spotlights appreciation gains in previous years:
- Homes purchased in the Toledo, OH housing market one year ago have appreciated, on average, by $17,113. The national average was $14,963 over the same period.
- Homes purchased in the Toledo, OH housing market three years ago have appreciated, on average, by $37,087. The national average was $46,878 over the same period.
- Homes purchased in the Toledo, OH housing market five years ago have appreciated, on average, by $52,137. The national average was $82,353 over the same period.
- Homes purchased in the Toledo, OH housing market seven years ago have appreciated, on average, by $47,566. The national average was $77,054 over the same period.
- Homes purchased in the Toledo, OH housing market nine years ago have appreciated, on average, by $28,968. The national average was $31,126 over the same period.
Despite lower home prices, gains in total equity for the Toledo real estate market have remained on track with the national average for the last nine years. Last year witnessed the first time total equity for Toledo real estate has outpaced the national average. The combination of low home prices and steady equity is sure to stimulate Toledo real estate investing activity in the second-half of 2016.
Another factor that could influence activity are foreclosures. Toledo saw 1,710 properties in some stage of foreclosures during the month of September, according to RealtyTrac, which was 41 percent lower than the previous month and 17 percent lower than the same time last year. In addition, bank owned properties also decreased, with the number of REO properties falling 2.5 percent compared to last month, and 17.2 percent prior to last year. In total, foreclosures in Toledo remain high. However, this could potentially spawn a frenzy of Toledo real estate investments in the second-half and beyond.
Toledo, OH Real Estate Market Summary:
- Current Median Home Price: $125,100
- 1-Year Appreciation Rate: 13.9%
- 3-Year Appreciation Rate: 34.7%
- Unemployment Rate: 4.7%
- 1-Year Job Growth Rate: 4.1%
- Population: 282,313
- Median Household Income: $51,075
Toledo, OH Real Estate Market (2016) — Q2 Updates:
Off to a hot start, the Toledo real estate market looks to continue the trend in the second-half of 2016. The median home price for Toledo real estate was $125,100 during the second quarter, compared to the national average of $239,167. However, appreciation rates continue to flourish. The second quarter saw homes in the Toledo real estate market appreciate at a one-year rate of 13.9 percent, earning investors and homeowners $17,113 in total equity, in comparison to $14,963 the national average saw. The buck doesn’t stop there, however.
Another factor working in favor of the Toledo real estate market is its economy. With a population of 282, 313, Toledo had an unemployment rate of 4.7 percent during the second quarter, whereas the national average saw a rate of 4.9 percent. One-year job growth was another positive, as new jobs in Toledo grew at a rate of 4.1 percent in Q2 compared to the national average of 1.9 percent. That said, local employment growth in Toledo remains strong compared to other markets.
The recipient of Toledo’s fortune in the first-half of 2016 has been its housing market. The Toledo housing market continues to see hikes in new housing construction, while home affordability remains among the lowest in the country. Construction rates for new housing in Toledo reached 21.6 percent above the long-term average during the second quarter, with single-family housing permits rising to 25.5 percent, compared to the national average of 10.6 percent. That said, new housing construction for Toledo real estate is on the rise relative to last year, suggesting the local inventory has stabilized
In terms of home affordability, Toledo homeowners paid 6.2 percent of their income to mortgage payments during the second quarter, whereas the national average paid 15.8 percent. Although affordability has historically been strong in Toledo, with homeowners generally paying 8.4 percent of their income to housing, compared to 19.5 percent by the rest of the country, the second quarter served as a bright spot for continued improvements. The refinement will only help to benefit Toledo real estate investors and homeowners in the second-half.
Moving forward, the Toledo real estate market is primed to see growth. According to the National Association of Realtors, Toledo is expected to see higher price growth in the next 12 months, compared to the national average. The NAR predicts Toledo real estate will grow at a commanding rate of 3.8 percent in the second-half of 2016.
