How the Financial Crisis Impacts Cincinnati Real Estate
September 30th, 2008 categories: Cincinnati, Ohio, Real Estate News, West Chester, Ohio
The golden rule in business is to never talk about politics or religion.
I agree with the rule and though the “bailout” has become highly political-the problem is really financial and the outcome affects everybody.
Last night on ABC News, Robert Kruwich had a short animated segment “An Animated Look at the Credit Crunch”
This animated look at money flow provides a good insight into why financial problems impact the real markets in West Chester, Fairfield, Mason and greater Cincinnati. If there isn’t any money- then buyers cannot secure mortgages to purchase real estate.
Less money means less demand for all products- including real estate and Stacy Johnson, Our Money Editor, explains “Housing Turn Around Supply and Demand”
I don’t know if the answer to the problem is the rescue of financial institutions and/or for qualified* home owners heading into or already in foreclosure -new mortgages on property at current market value**. *Qualified= owners with a good credit rating who cannot afford the higher interest rates of their current mortgages. ** What the property is actually worth in today’s market.
Until Washington comes to a decision, real estate in greater Cincinnati is business as usual. Buyers should obtain loan approval -pending contract and appraisal- before they start house hunting. Sellers need to watch supply and demand and be realistic about pricing.
Stay tuned for future reports on the impact on our local real estate market.
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