Cincinnati Real Estate Blog

The truth about the housing market

Don’t be fooled by all the negative media reports that are circulating. Look past the headlines and deeper into the stats. Our local market is not volatile like other markets. The truth is the sky is not falling!!! As a Realtor, I see the real estate market differently and would like to put some facts into perspective so that the next time you are around the water cooler, at the gym or chatting with neighbors and they begin to be naysayers about market conditions you can disarm them with a smile and the facts.

• The real estate market is cyclical
• In the mid-70’s, early 80’s and early 90’s housing sales dropped more than 60% and in all cases the market bounced back with record gains
• Home values nearly double every 10 years
• Although the final stats for 2007 are not published yet sales in November were down 7.18% compared to a year ago. This is marginal compared to 20% on the national level & negligible compared to the past down markets
• When looking at stats that compare 2007 to the year before remember that 2006 was the 2^nd highest year on record for number of sales. Compare the same stats to years prior to 2005 and it paints a completely different picture.
• Even without 2007 final numbers the market did prevail to be the fifth highest year for volume of real estate sales
• Past down markets were coupled with a struggling economy & severe job cuts
• Today’s economy is more positive with the jobs being continuingly added
• For instance, in Greater Cincinnati commercial contracts are up. In the month of September alone they were up 71% over a year ago
• US economy expanded at a 3.9 annual growth rate in the third quarter while economist were only predicting at 3.1 growth rate
• Mortgage rates have been falling and with the clear signs of continued inflation the rates should remain favorable through 2008
• Homebuilders have drastically cut production which will help minimize prolonged oversupply conditions
• Forbes magazine on line ranks Cincinnati as the sixth most stable real estate market in the Untied States
• With favorable interest rates, job growth, consumer confidence & an abundance of pent up demand the housing market is poised to be favorable for 2008

Now is an amazing time to buy, especially for first time buyers and investors. If you know of anyone who is thinking of buying or selling I would be happy to assist them.