Cincinnati Housing Market: The Impact of 2023 and 2024
Let’s take a deep dive into the Cincinnati housing market and compare it to where we were just five years ago in 2019. For this analysis, we’ll focus on Hamilton County and explore key metrics like home sales, prices, and market trends.
A Pre-Pandemic Snapshot: 2019
The year 2019 marked a pivotal point in the real estate landscape, occurring just before the COVID-19 pandemic disrupted the world. In Hamilton County alone, a staggering 11,501 homes were sold with an average listing price of $236,841 and an average selling price of $230,391. Homes typically spent 30 days on the market, and the median selling price was $169,900. The sales-to-listing ratio stood at 43.73%.
The U.S job market was robust in 2019, with unemployment rates reaching their lowest levels since 1969. This economic strength undoubtedly contributed to the housing market’s vitality.
Cincinnati Housing Market: The Impact of 2023 and 2024
Fast forward to the present, and the Cincinnati housing market has undergone significant transformation. From August 2023 to August 2024, a total of 8,512 homes were sold in Hamilton County. While the number of sales has decreased compared to 2019, it’s essential to consider the broader economic context.
Average listing and selling prices have surged to $340,352 and $340,269, respectively. Homes are moving much faster, with an average of just 18 days on the market. The median selling price has climbed to $260,000, and the sales-to-listing ratio has contracted to 3.84.
A primary factor driving these changes is the interest rate environment. In 2019, buyers enjoyed historically national low mortgage rates, often in the 3-4% range. Today, rates have climbed to a national average of 6.83%, significantly impacting purchasing power and buyer behavior.
While the U.S job market remains relatively strong, the labor force participation rate has declined slightly compared to 2019. This economic nuance, combined with higher interest rates, has contributed to a cooling off the market.
A Complex Cincinnati Housing Market
Despite these challenges, the Cincinnati housing market remains competitive. High demand continues to outpace supply, causing home prices to rise. Buyers are facing increased competition, and homes are selling rapidly.
However, the market is not without its complexities. Sellers may be hesitant to list their homes due to concerns about higher interest rates and potential buyer affordability issues. Conversely, buyers are grappling with increased mortgage costs, making it challenging to find an ideal property within their budget.
The Road Ahead
The housing decisions made by Baby Boomers in the coming years will undoubtedly shape the market for Millennials and Gen Z. As this demographic transitions, it could significantly impact supply and demand dynamics.
If you’re considering buying or selling a home in Cincinnati, navigating this complex market requires expert guidance. Contact me today to leverage my knowledge and experience to achieve your real estate goals.
Sarah Rose, Realtor