Following the trend of slow and steady housing growth in America as a whole, Cincinnati is starting to see some positive signs of its own. Local experts are thrilled with what they’re seeing out of Cincinnati’s housing market, and they think that January’s numbers will extend well into spring!
Just how good were things in January? Pending sales increased 24.4% compared to January 2012. As if that wasn’t good enough, the number of pending sales here was the highest is has been since 2007!
Unfortunately though, pending sales don’t necessarily mean that the sale will be finalized. Pending sales typically close within a month, assuming that all of the needs of both the seller and the buyer have been met. Lender and inspection considerations typically are the biggest concern during a pending sale. It happens more than you would expect that when the sale is almost complete, the buyer loses financing or the inspection turns up things that deter the seller from wanting to commit to this new home.
Those concerns aside, though, these numbers are a big step in the right direction because higher numbers of pending sales lead to higher numbers of overall sales. And, with sales up locally, more sellers will, hopefully, be willing to enter the market. Right now, Cincinnati’s inventory is low – which is good for sellers, because that low inventory leads to higher offers from buyers (and even bidding wars in some cases!). However, the best way for this housing market to get hot is for more homeowners to realize that it’s a good time to enter the market.
Pending sales are not the only positive signs of a growing market here, though. The foreclosure rate, the new home sales numbers, and home prices are also on the upswing.
The foreclosure rate here is less than 3%, which is the lowest that number has been in over two years. In fact, the local foreclosure rate hit its peak just a few months ago, back in April 2012, when 3.23% of local mortgages were in the foreclosure process. Foreclosures have been a big concern here over the years, so this decrease shows not only a better housing market, but also an improvement in the local economy as well.
New home sales for the country as a whole are as high as they have been in quite some time, and there is an increase in new homes being built as well. In the Midwest (where Cincinnati is located), sales of new homes rose over 11%, so this metro is right in the thick of things!
Home prices are also rising, which shows that this metro is headed in the right direction. And, as those prices continue to go up, new sellers will be tempted to enter the market.
Although Cincinnati’s housing market was spared the devastation of places like Detroit and Las Vegas, the high percentage of unemployment throughout Southern Ohio led to an abysmal housing market that has seen limited growth and virtually no recovery in recent years. So, January’s positive growth is hopefully a sign of much better things to come!
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