August 2017 Greater Cincinnati Luxury Real Estate Market Report
Interest rates for conventional and jumbo mortgages are still low and overall home sales are depressed. The reason for depressed home sales is thought to be low inventory. There is also a trend of certain buyers opting to remain more mobile by not purchasing and instead renting a place to own. Since July 2017 the average prices of luxury homes has gone up in the Greater Cincinnati area as well as the inventory has gone done which is somewhat expected as homes sell or are pulled off of the market until Fall or Spring. In the case of Greater Cincinnati more luxury homes sold during the month of August than did in July. See below for more statistics and articles of interest.
July 2017 Greater Cincinnati Luxury Real Estate Market Report
With interest rates slowly coming down there has been a slight uptick in mortgage applications but there still remains a shortage of available housing. Jumbo mortgage interest rates have also reduced somewhat from the recent highs. Record high pricing in homes is forcing some buyers to the sideline and with there is a new sentiment creeping up that is not as keen on housing as some in the past may have been. Overall still a good time to sell a home if the homeowner is ready. Luxury real estate statistics for July 2017 are in the below graphic and be sure to check out some insightful links below.
June 2017 Greater Cincinnati Luxury Real Estate Market Report
The luxury real estate market in Greater Cincinnati is a bit slower than homes that are non-luxury in category. There are a number of reasons luxury homes (homes $600,000 and up in price) are sitting for longer on the market and requiring steeper price reductions in order to get offers. Local employers such as Kroger and Macy’s are facing tough competition from online sales (Amazon anyone) and as a result are scaling back growth and hiring. Consequently less money is being spent locally to hire people in senior level positions and less money being spent to expand or improve existing stores.
Kroger in particular has decided to slow down expansion across the Greater Cincinnati area. Due to Amazon.com announcing the purchase of Whole Foods the grocery sector in general will experience a big disruption which will force grocery retailers like Kroger to spend less and be more nimble in adopting services that customers have yet to express an actual demand for. Less money being spent by Kroger for expansion means less money being distributed across the region, which will slow things down. Also with the upcoming final movement of Toyota from Northern Kentucky to Fort Worth, Texas means plenty of high-level jobs leaving the region along with those employees selling their homes. Those Toyota jobs being higher wage earners will put downward pressure on luxury homes.