Zillow forecasts that the Cincinnati housing market will be the nation’s second hottest in 2024. Despite recent drops in mortgage rates and expectations for better affordability and more homes, lingering challenges from last year are likely to affect the market. How will these issues shape the Cincinnati housing market’s performance in the coming year?
Looking at Zillow’s rankings for the hottest markets in 2024, Zillow expects Buffalo, New York to be the nation’s hottest housing market, with Cincinnati at number two on the list. Columbus, Ohio, and Indianapolis, Indiana are also rounding out that top five.
If you’re looking to buy, sell, or invest in the Cincinnati housing market in the coming year, this forecast has major implications for you.
Why Cincinnati?
Zillow’s 2024 hot market rankings highlight cities poised for real estate growth based on key indicators: forecasted home value trends, market activity, labor market projections, construction metrics, and homeowner demographics.
Buffalo claims the top spot due to a surge in job creation and limited new housing projects, signaling robust demand amid constrained supply. Stable home values further bolster its appeal.
The Cincinnati housing market’s second-place ranking is primarily due to its high market velocity. Throughout much of 2023, homes in Cincinnati typically went under contract within a median of just five or six days. This swift turnover highlights strong demand and a competitive market. The city’s impressive standing is not only driven by steady price appreciation but also by the limited inventory, which accelerates the pace of sales and solidifies its position as a top market.
What Does It Mean for Sellers?
Sellers are in the driver’s seat again. With interest rates easing from their highs of 8%, and signs that the Federal Reserve may lower them further, we anticipate a bustling year ahead in Cincinnati and Northern Kentucky.
Despite low inventory in the city, many buyers held off in 2023 as interest rates climbed. Now, these buyers see that prices are still rising, and with rates stabilizing, we expect strong buyer demand in 2024.
Now is the time to connect with a real estate agent. Discuss staging and the best timing for selling your home, as seasonality is crucial in Cincinnati’s market. By presenting your home effectively and implementing a solid pricing and marketing strategy, you’re likely to attract multiple offers. You could be under contract within the first weekend.
What Does It Mean for Buyers?
Strategic planning is key when it comes to real estate in the Cincinnati housing market and Northern Kentucky. Whether you’re selling your current home or looking for a new one, your real estate agent will be your crucial partner in negotiating terms and timelines.
For prospective buyers in the Cincinnati housing market, timing and preparation are crucial, especially in a competitive environment. Here are some rapid-fire tips to consider:
- Shop a bit below your top budget because you may have to offer over the asking price.
- Secure the best financing terms possible. Consider your financial position, including any contingencies such as selling a current home, which could impact your ability to make competitive offers.
- Utilize escalation clauses to demonstrate flexibility and readiness to offer above the asking price if necessary. Discuss these strategies in detail with your agent.
- Be flexible with the seller. Give them occupancy options or maybe even limit or even waive your inspections. That’s going to help you beat out some of that competition.
- Make sure you’re working with a real estate agent who has experience and a track record of working in a highly competitive market.
Alternatively, for buyers seeking a less competitive path, new construction homes offer distinct advantages despite potentially higher initial costs:
- Everything’s new. You’ll enjoy the peace of mind that comes with a new home, which typically requires minimal immediate maintenance or repairs.
- You get to pick the layout and design schemes that align with your preferences, avoiding the need for renovations often associated with resale properties.
- There’s probably going to be less stress with a new construction home, navigating a potentially smoother buying process amidst market fluctuations, as new construction homes are not typically subject to bidding wars and competitive pressures
How Can We Help You?
If you’re considering new construction, we collaborate with several reputable builders in the area, including Drees Homes and Fisher Homes. For those interested in custom homes, options like Five Daughters Construction or Justin Doyle are also available. It’s essential to consult with your agent initially to ensure you’re registered with the builder, securing professional representation throughout the entire construction process—at no cost to you, covered by the builder. Contact an agent early to maximize your new construction home buying experience.
What Does It Mean for Investors?
As a local investor myself, I see great potential in Midwestern cities like Cincinnati, Columbus, and Indianapolis. These places offer affordable homes that can still bring in good profits—an opportunity that’s hard to find elsewhere.
While institutional investors have focused heavily on Sunbelt cities in recent years, the Cincinnati housing market offers a different landscape. Situated just north of the Sunbelt region, we’ve seen some institutional interest but remain relatively untouched compared to our southern counterparts.
With Cincinnati forecasted as the second hottest market for 2024, now is an excellent time to consider investment opportunities in this thriving city. Whether you’re looking to sell your home quickly, secure a competitive offer, or invest in a thriving market, proactive engagement with a knowledgeable real estate team is key to success in Cincinnati’s dynamic market environment. Team Sztanyo is here to help. Contact us at info@teamsztanyo.com to get started.