How is the Cincinnati real estate market shaping up in 2017?
What do the numbers look like now? What is the outlook for the housing market in Cincinnati, OH? When is the best time to make your next house move?
The State of the Market
As a whole the nation and Cincinnati has healed very well since 2008. There are very few foreclosures or mortgage delinquencies today. House prices have rebounded well, and a strengthening economy suggests we on a stronger foundation than we’ve been in more than a decade.
Cincinnati Homes Prices in 2017
According to Zillow the median home value in Cincinnati is up 6.6% to $120,900. For the city as a whole the average home asking price is slightly higher at $137,000. Those numbers go up quite a bit once you dig into some of the area’s more affluent neighborhoods. Average values in Mt. Adams are at $415k, $389k in Mt. Lookout, and $328k in Hyde Park.
One of the most significant changes in the US property market over the past few years has been in rentals. With the massive hedge fund buying spree and institutionalization of rental homes it has become harder for renters to get into new places, and far more expensive. In Cincinnati that has meant average rental rates rising from around $700 per month in 2011 to almost $1,100 per month in 2017. For many these changes is only making it more attractive to buy versus rent. Yet, buyers still need to beat the coming rise in mortgage interest rates if they want to lock in the best payments.
Zillow forecasts that Cincinnati home prices will continue to grow in 2017, but at a much lower rate. That is just half of last year, but at a healthy average of 3.3%. With new, higher levels of optimism in the market some homes and neighborhoods may experience even better growth. Overall prices still appear to be slightly under previous highs as of January 2017. That leaves some room for equity appreciation over the next 4 years.
Although home prices have moved up since 2014, the data shows an interesting pattern in home asking prices. There is a sizable dip and lift each year depending on the season. Those who buy homes early, ahead of peak summer home buying season may find substantial discounts, and very attractive bargains. Though expect sellers to dramatically increase asking prices by May and June.
The Cincinnati real estate market is still strong, though has been turning to become a ‘buyers’ market’. Growth may be more modest ahead, but more buying activity in the summer should fuel higher prices. This gives an appealing advantage to early movers to get into the neighborhood they want, or sell and move up.