New year, new home? Is this the year for buying or selling houses in Cincinnati, Ohio?
We ‘re in a bright new year, with lots to look forward too. People are optimistic, new goals have been set, and this is a great time to capitalize on that momentum and make some moves. For many, a new home can be the perfect catalyst to fueling their new lifestyle and financial aspirations. That may be being more social, gaining the space for a home office for a new business, or maybe a home gym. Yet, one of the big questions many Cincinnati residents are asking is if this is a good year to sell a home or to buy one? Or perhaps it might be best just to renovate and make your current home to fit your new needs and wants?
The Changing Real Estate Market in 2017
There are many changes in progress this year. Love or hate Donald Trump, it is clear that he has had a significant impact on markets. Whether they voted for him or not, the overwhelming majority appear to be bullish on the outlook for the economy, finances, and the real estate market. That new confidence alone is likely to continue to support a lot of activity in the real estate space.
With expectations that home prices will keep on rising for the next 4-8 years it’s likely we’ll see a lot of home buying happening. That’s good for homeowners who may see equity rising. But, for those that drag their feet in buying their first home, investing in real estate, or moving up or downsizing, it could make things more expensive, fast.
One of the most prominent themes in the real estate news today is the lack of inventory. Since last year Cincinnati.com and Realtors in Cincinnati were reporting that fewer properties for sale were making it tougher to find homes. That means if buyers find something that works, they had better jump on it and make an offer fast. In some areas of the country this situation is severely impacting affordability. It means a lot of bidding on available properties and high prices. Fortunately, this is only making OH real estate even more attractive to investors.
Stronger businesses and job growth could alleviate affordability pains in 2017. So could Trump’s stated plans of making it easier to lend and borrow mortgage loans. One other factor helping the market is changing demographics. Boomers’ needs and desires are changing. Many are seeking better proximity to conveniences and healthcare, and their home size needs are changing. At the same time millennials are stretching and growing into homeownership, and may even be moving up to better located homes near live, work, and play hubs, and in walkable neighborhoods. However, the Fed seems set on raising interest rates several times in 2017. That is going to make the same homes far more expensive by 2018.
According to Zillow Cincinnati home prices rose 6.4% in 2016. Zillow forecasts another 3.5% increase in home prices by the end of 2017.
Selling a House in Cincinnati in 2017
While home prices may continue to gradually rise, there are two big factors impacting sellers this year. One is that higher interest rates could quickly wipe out many hopeful home buyers as their incomes may no longer qualify them. Or they won’t be able to afford homes they like. Many sellers are also dealing with older homes, a lot of which need some work. Despite the rise of house flipping TV shows, the data from the National Association of Realtors shows that the overwhelming majority of buyers do not want homes which need work done, or have clearly been patched up in a DIY fashion. Some homes are just going to have to be demolished and rebuilt. The key to successfully selling this year is to do it early, and beat your competition to the market.
Renovating & Rebuilding Homes in 2017
Homeowners that love their location may also find this a fantastic year for house renovations. If you’ve built up some home equity and your credit is decent it may make sense to spring for a big makeover. Interest rates and building costs are probably the lowest they can be for almost another decade. Turn your existing home into something you’ll really love, and will keep working well for you. Incorporate new styles and floor plans, and extend the useable life of your home. Or if you love your lot, but your current home is far outdated, consider a teardown and rebuild.
The New House Search in 2017
Low interest rates and hungrier lenders mean this can be a smart time to buy a home. It may be competitive out there, but if you make the right connections and are ready to move fast you can find very attractive new homes for sale in Cincinnati. When choosing, make sure you keep your long-term needs in mind. What area will work best? Are you getting enough space? Will the home last? If you plan to stay here or at least keep a home here going with a new build home might be the best path.
2017 is shaping up to be a great year for Cincinnati real estate. It’s important time for sellers, buyers, owners, and investors to make a move. And the earlier the better. What will you do?