When it comes to the best states for new homebuyers, Ohio is one of the tops in the nation.
Real estate company REsimpli recently ranked Ohio as the No. 5 state to buy a first property. It takes just under two and a half years to save for a down payment in the area, according to the report.
“For first-time homebuyers, knowing where may be most affordable to save for a down payment can be crucial in planning their next steps,” said Sharad Mehta, CEO of REsimpli. “This is especially true in today’s challenging market for this group.”
The median home value in the state is $204,100, according to REsimpli, and a typical down payment is $29,390.
What’s the market like in Stark County?
The Canton-Massillon market has some desirable options for those looking for a home.
Last year, the metro area, which includes Carroll County, was on Realtor.com’s list of hottest housing markets on several occasions, placing eighth in its recent November list and 12th the month before.
The median listing price for the area for active listings was $246,000 in November. Currently, the median listing price for Canton comes in at $185,000.
Big cities are priced higher than the Ohio average, which is typical, but the state as a whole is very affordable, making it also a desirable place to buy, said Hannah Jones, a senior research analyst at Realtor.com.
“Midwest markets, such as the list’s markets in Ohio and Illinois, appeal to today’s buyers because of their affordability in light of today’s still-high home prices and upper 6% mortgage rates,” Hannah Jones, a senior economic research analyst, said in the November report.
Not enough homes
Another reason that homes are more expensive in certain parts of Ohio is because housing stock is low, Jones said.
“There are far fewer homes on the market,” she said. “Which is why we see home prices in the state continue to grow.”
Prices will rise until inventory grows, she said.
The inventory gap is especially affecting the Ohio market, Jones said, but it’s also a national trend that has played out over the past decade-plus. Overall, home building hasn’t kept up with need.
And current homeowners have lower interest rates than are available now, so many aren’t incentivized to sell, she said.
But if inflation improves and mortgage rates lower, sellers are expected to return to the market, increasing available homes for sale, Jones said.
“What’s keeping the housing market moving at all right now is life goes on,” she said, as people are still getting married, relocating for jobs and having children. “Even if mortgage rates are really high, people will continue to buy homes out of a sense of necessity.”
In December, home prices in Ohio were up more than 45% when compared with 2019, according to Realtor.com, meaning prices are still high.
Prices are growing faster in Ohio than they are nationally, Jones said.
“It’s incredibly challenging to be a first-time homebuyer,” she said.
How do other states stack up?
Beating Ohio and taking first place as the best state for new homebuyers is West Virginia with a median home value of $155,100 and two years to save for a down payment on average, according to REsimpli.
Tied for second with two years and one month to save were: North Dakota, with a $243,100 median home value and Iowa, with a $194,600 median home value.
“Housing costs and income varies across the U.S., meaning the time needed to save can range from only a couple of years in states like West Virginia or North Dakota, to even over six times in other states,” Mehta said. “Understanding these differences can help buyers set realistic goals or even explore relocating to more affordable areas.”
The study considered an average down payment to be 14.4% of purchase price and also took into consideration each state’s living expenses by determining cost of rent for a two-bedroom house in each state.
Other states in the top five include Oklahoma ($191,700); Kansas ($206,600); and South Dakota ($245,000) — all states in which it’s estimated to take first-time buyers two years and three months to save.
Tied for fourth place, with it taking two years and four months, were Arkansas ($179,800) and Nebraska ($232,400).
Ohio tied for fifth with Mississippi, where median home value is $162,500 and saving for a down payment would take about two years and five months.
Ranking in the bottom, where it is hardest for first-time buyers to save for a down payment, were Hawaii, California, Utah, Oregon, Washington, Colorado, Massachusetts, Arizona, Nevada and Idaho.
In Hawaii, the median home price is $820,000, and it would take 13 years and four months on average for residents to save a $118,094 down payment, according to REsimpli.
This article originally appeared on The Repository: Ohio ranks high for best place to buy your first home, REsimpli says