No one has a crystal ball when it comes to predicting the market. But what is unique about real estate trends is that they are just that, a trend. Which means that you can look at what has happened in the past and reasonably predict what will happen in the future with respect to the real estate market.
In the Cincinnati area, what does the bigger picture show? First off, home sales seem to slow down in the months following summer because people aren’t moving as much. They’ve already completed their relocation and have settled in, ready for their kids to attend their new school. Secondly, comparing home prices over the past three years we can see that prices have increased by 10.2% in the county. Real estate trends move at a much slower pace than the highly volatile stock market, so it is unnecessary to panic when we see a drop in home prices from one month to the next.
In addition to increasing home prices, the average time a property is on the market is down 6.19% for the last year, which means that properties are moving faster. Also, if you look at the trend over the last three years that percentage is down 12.9% year over year. What does that mean? That means that when a property is put up for sale, people want to buy it quicker than they did before, thus demonstrating a healthy real estate market.
Finally, the number of listings available may show that they are down 3.88% for the month of September, but looking at the last three years as an aggregate, single-family home listings are up 3.1%. What that shows is that homeowners are now in a position to sell their homes and make some kind of profit that they can then roll into a new home, strengthening the market even more.
Some real estate analysts may say that the real estate market is cooling off, that it has plateaued. However, looking at the real estate trends over the past three years we can see that that is not the case. The market is strong and will continue to grow. Just follow the trend.
If you are considering a move you may want to consider doing so sooner rather than later, as lending guidelines may get tougher as the market improves. Contact Jeff today to determine your buying power and get the process moving.