June 2020 Greater Cincinnati Luxury Real Estate Market Report
Last year there were 80 luxury homes that sold within the month of June 2019. The median price was $899,450.00. Average days on market was 121. The biggest difference this year as can be seen is the total amount of luxury homes sold only being 56 during June 2020. The Greater Cincinnati region was just coming off the tail end of COVID-19 related economic shutdowns and many sellers pulled their homes off of the market as a result. There were more luxury homes available for sale in June 2019 than there are today. So long as qualified luxury home buyers are still ready to buy prices will stay steady in the luxury market with the limited supply.
New Home Sales Jump Are Downward Revisions - Sales of newly constructed homes beat expectations. Whether this can sustain remains to be seen as the virus is surging again in some states.
Pending Home Sales Are Off Of Recent Lows - While pending home sales are off of recent lows they are still below where they were last year. One of the biggest struggles home sellers have are putting their home on a market facing a pandemic and having another place to move to as well once they do sell their home.
About the author: The above article “June 2020 Greater Cincinnati Luxury Real Estate Market Report” was provided by Luxury Real Estate Specialist Paul Sian. Paul can be reached at ...
May 2020 GREATER CINCINNATI LUXURY REAL ESTATE MARKET REPORT
With many areas starting to open up real estate sales have started to pick up as well. Some homeowners have pulled their homes off of the market during the virus induced economic shutdowns and some of those homes may not come back to the market due to changed plans. In the near term this will cause competition to increase due to fewer homes being on the market for those buyers still ready, willing, and able to buy. See below infographic for how luxury homes performed in the Greater Cincinnati, Ohio real estate market.
October 2017 Greater Cincinnati Luxury Real Estate Market Report
The October 2017 luxury real estate market showed a slight uptick in sales and median price in the Greater Cincinnati area. The last quarter of the year is typically the slowest of the year when it comes to housing sales as fewer people are interested in moving during the cold months and holiday gatherings can interfere with the process of selling a home. Look for the current trend to continue throughout the rest of 2017. A Federal Reserve interest rate hike may start some movement in the housing market in one direction or the other. Consumer spending has increased but it has come at the expense of consumers tapping spending at record levels since 2009 which cannot lead to a sustainable expansion. Check out the links below for more details.
The real estate market continues to show signs of softening as pending home sales all over the US are on a downward trend. Even with interest rates as low as they are home inventory remains tight and it could be possible that buyers are beginning to also pull back and wait until housing is more affordable. Millennials with their current debt levels and attitudes that are not necessarily for homeownership could play in to the coming months as the real estate market sorts itself out.
An interesting article about homeownership in Australia tells of homeowners who could not afford an extra $100 in mortgage payments if interest rates were to rise. The same could happen in the U.S. if interest rates were to rise which would cause pressure on those with adjustable rate mortgages (ARM) and limited time interest only mortgages. The Federal Reserve has indicated a desire to raise rates but whether they are actually able to do so remains to be seen. Higher priced luxury homeowners who are looking to sell should try to sell now rather than waiting to see if buyer interest comes back.
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.