The housing market got some much-needed relief in the fall when mortgage rates began to fall, but it was short-lived. Apart from two interest rate cuts in Federal Reserve, Mortgage rates have risen again and remain at an all-time high.
The price turmoil has trickled down to individual markets like Cincinnati, where real estate agents say they don’t know what to expect from sales to sales.
“It’s impossible,” said Teena Jackson, a Redfin agent in Cincinnati. “I have been doing this since 2005 and I tell customers that I have never seen a market like this, so we must navigate together.
Cincinnati has benefited from the broader revival of the Midwest, where large companies have opened offices to take advantage of the cheaper cost of living compared to the coasts.
These companies bring in transplants who move to work, and home builders have flocked to the area to provide more housing in the available space. This spurred economic growth in southern Ohio and northern Kentucky – and made the housing market more competitive.
“We are an affordable place compared to many other places that bring in the transportation of many people because we have big companies here,” said Donna Deaton of RE/MAX Victory + Affiliates. “We have General Electric, PNG, Amazon. That greatly increased our sales.”
Jackson underlines his point by predictably comparing two recent sales. One was “very low priced” and received 28 offers in less than 24 hours, eventually selling above asking price. But on the same home, one of his clients had an offer below the asking price that was accepted.
It is a sign of a changing market away from sellers. According to the data from Altos Research, Inventory for sale rose from 1,864 in the 90 days in May to 3,019 today.
A significant drop in new listings is a contributing factor. On Nov. 1, weekly new listings were at 410 but fell to 186, although new listings tend to drop in December as the holidays approach.
The decline in listings also lowered the median sales price from $400,000 in 90 days in June to $350,000 now, the lowest point in 2024.
Relatively more homes for sale are giving buyers more leverage, as evidenced by Altos Research’s Market Action Index score dropping from 55 in May to 45 today. Altos considers anything above 30 to be a seller’s market indicator.
Sandy Wethington, an eXp Realty agent, said he recently participated in a transaction where the seller installed a new septic tank and a new roof to close the deal.
“I don’t know that I’ve seen that many deals in any transaction in my 35 years, but the guy wanted to do it,” he said. “It’s become a common theme.”
Although the market will naturally slow down over the holidays, agents in Cincinnati expect buyers and sellers to be active in the new year, even if mortgage rates remain high. People who need to move because of a recent “life event” have been waiting for rates to drop, but many still can’t.
Despite rising inventory and falling prices, the value of real estate is still much lower than normal.
“I still think the market is very healthy, but the limited inventory is a problem, and I would say that is consistent across the board, regardless of the price,” said Meg Perez of the . Company Coldwell Banker Realty.
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