CINCINNATI – The housing market is hot in parts of the United States. And Cincinnati is no exception.
This is great for anyone trying to sell their home. But the problem is for anyone trying to buy it.
What do you need to know
- The Greater Cincinnati real estate market is one of the hottest in the country.
- In June, the listed houses were sold on the market for only nine days. Average selling prices rose 18.4% year-on-year.
- Realtor Bob Dorger says this is the seller’s market.
- Some sellers are willing to take the risk to take advantage of pricing that is in the higher end of the market.
“This is definitely a seller’s market. Being a buyer can be a little frustrating due to limited inventory, ”said Bob Dorger, owner of The Dorger Difference, a Cincinnati-based real estate agency affiliated with Comey & Shepherd Realtors.
Data released Thursday by the Ohio real estate agency shows that sales in Cincinnati are up 10.9% over last year.
“We see entry-level homes, we see house moves, we see luxury homes selling very quickly throughout Greater Cincinnati, especially if a turnkey home is ready to move in,” Dorger said.
Greater Cincinnati homes were sold on the market for an average of nine days last month, according to Comey & Shepherd. This is up from 23 days this time last year.
Some of them are on sale even before they are listed.
“In a typical market, homes are sold in 30-60 days, so nine days is a competitive barometer. This is why people have to push their proposals so actively, ”said Dorger.
Comey & Shepherd reported that the average selling price of Greater Cincinnati in June was $ 301,969. The average selling price last year was $ 254,152.
Sales prices for the year increased by 18.4%, based on Ohio Realtors…
“This is a crazy market,” said Dorger. “This is something we have never experienced before. There are many different factors here – a pandemic, low interest rates, limited stocks. A perfect storm, if you will. “
Selling a house
Mark Slaughter said that he and his wife were already thinking about selling their home in Mainville, Ohio. The prospect of making a significant return on their housing investments gave them the extra incentive they needed.
“We knew what the market was, so we decided to sell the house,” he said. “Two people on my street made a $ 100,000 profit, and I wanted to do the same.”
It didn’t take them long to make money.
“Our house was up for sale on Wednesday at 3:00 pm, and by 3:30 pm people were asking if we could leave because they wanted to come and see it,” Slaughter said.
The next day, the couple had seven or eight potential buyers.
“By Thursday night we had four offers, two of which were in cash, and we accepted one of the offers in cash,” Slaughter said.
Curtis Bailey, financial advisor to Quiet Wealth Management, said financial considerations shouldn’t be the only motivation for a sale.
“I wouldn’t encourage people to sell just because the market is hot,” he said. “They need somewhere to live, and to benefit, they may have to live in an area they would not like to do. In the near future, prices may fall. in a couple of years, however, over the next five to ten years, I won’t be surprised if house prices go up. “
Buying a home
Interest rates are below 3%, making this an attractive shopping time. But the lack of affordable homes and condos can make it difficult for a buyer to find what they want.
One number that real estate agents love to look at is delivery months. This is the time it would take to sell all the houses on the market at the current rate if there were no new inventory.
Dorger said that during a “normal, balanced market”, shipments will last for about six months. Now there is less than a month left.
This is one of the reasons for the rise in prices. This also led to a war of applications.
The slaughterhouses are in their fifth week of home hunting. They searched in Anderson Township, Liberty Township, West Chester and several other suburban areas of Greater Cincinnati.
So far, they have made bids for three properties, each exceeding the asking price. Each time they were interrupted.
Their last disappointment came on Friday when they deposited a check for the sale of their home.
“I woke up and went with my wife to see three houses. We found the one we fell in love with, ”Slaughter said. “We made a bet, went to the realtor to close our house, and then put the check in the bank. By 2 o’clock we were told: “No, you have not received another house.”
Slaughter said they had two separate bids turned down for the same house.
“We offered $ 30,000 in excess of the requested amount, but did not receive it,” he recalls. “This deal fell through after verification. We told them that we would make the same offer to them if they made several renovations. But they also refused. “
Bailey said that people looking to buy should take into account that prices are close to the upper levels of the market. So if they don’t plan on living in the house for five to 10 years, they might consider putting it off right now.
Slaughter said he was a little nervous about the overpayment. But it is more important for him to find a home that best suits the needs of his family.
At 51, he’s not going to move and “ever go through this again,” he said.
Slaughter said his agent Debra Ayers of Coldwell Banker Realty is great. They have been working together for over ten years.
But he feels like he is “hitting the wall.”
“I have not worked for eight of the last 10 days, and every single day I got up at 7 am to watch at home until 2 or 3 pm. It was worse than work, ”Slaughter said.
He and his wife are going to visit a few more homes this weekend. But planning ahead can be difficult because of how quickly things change.
Slaughter jokingly likened it to trying to find toilet paper last year.
“Every day we get a list of about eight houses that we are going to see with our agent the next day, but by the time we wake up, this list will be reduced to five because three closed the day before or are awaiting review. It happened every day, ”he said.
The closure of the now former Slaughters home took place on Friday. They should move out by 23 August. The couple knew that finding a home could be difficult and that they might eventually need a short-term lease.
Here’s what they’ll do if they don’t find anything in the next couple of weeks.
“Now we are seeing a little fatigue of buyers. We have buyers who tried to buy four, five, six homes and failed, ”said Dorger. “Making a mental decision to buy a home is not easy. So not getting the home you really want is devastation. “
Dorger said some buyers are “hitting the pause button” in their searches until fall or perhaps early next year when stocks are expected to increase.
A return to more traditional sales models would be “a good thing,” he said.
“The current market is volatile, but I think we’re starting to see patterns that show we’re heading towards 2019 and pre-pandemic numbers,” Dorger said. “However, I think this will be a strong second half of the year and we anticipate that 2022 will be strong as well. We do not see it getting very cold in the near future. “