Cincinnati Real Estate

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Kathy S. Koops GRI

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Date-Stamped Real Estate in Greater Cincinnati

filed under: Real Estate posted on March 20th, 2015

date stamped real estatePicture yourself walking into the grocery store and buying meat date-stamped “sell no later than” 7 days ago?  Well real estate in greater Cincinati also has been date-stamped.  And thanks to all the shows on TV, many buyers seem to think properties that sit on the market for more than a month are stale and worth way less than asking price.

The greater Cincinnati real estate market has a unique inventory problem.  New listings are flying off the shelf -if they are priced right- and the rest of the properties just sit.  And the longer they have a sign out front or show up on internet searches, the date-stamp problem becomes more obvious to buyers. According to the Multiple Listing Service of Greater Cincinnati there’s a 6-7 month supply of houses/condos available.  Technically we’re almost to what is considered a “balanced market” where supply and demand is in sync.
Cincinnati Real Estate market Watch

Pendings sales numbers are approximately 60% of the number of new listings.  A good indicator that properties are selling- and in some cases quickly.

The Fed is signaling that it might consider raising interests rates this year.  For the average buyer a slight bump in mortgage interest rates may impact the price range you can afford to buy.  Any future rate increases also impacts sellers by reducing the number of potential buyers for slightly overpriced listings.

According to Keeping Current Matters:
“The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate.

If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you.

Predictions for 2016 2Q:

4.2% – Fannie Mae
4.7% – Freddie Mac
4.9% – Mortgage Bankers Association
5.3% – National Association of Realtors

Let’s look at it this way…

The monthly payment (principal & interest only) on a $250,000 home today, with the current 3.86% interest rate would be $1,173.  If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4.4% making that home cost $11,000 more at $261,000.  If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354.  Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year.”

Date-stamped real estate affects both buyers and sellers in greater Cincinnati.  Sitting on the fence waiting to buy or reduce the list price has the potential to cost everybody money!

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