September 2017 Greater Cincinnati Luxury Real Estate Market Report
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.
- Pending Home Sales Dive at MishTalk.com
- Home Sales Fall To 8 Month Lows at CNBC.com
- August Home Sales Down at Marketwatch.com