Cincinnati, the third-largest city in Ohio, is experiencing a housing market that has been on the rise in recent years. With a growing economy and affordable housing options, Cincinnati is attracting a lot of attention from buyers and investors. In this article, we will explore the current prices, trends, and forecast for the Cincinnati housing market in 2023.
Cincinnati Housing Market Trends for 2023
The Greater Cincinnati area has been experiencing a decline in home sales, down 24.8% from the previous year, according to the report released by the Cincinnati Area Board of REALTORS®. However, the market is showing signs of improvement with an increase in active inventory, up 26.3% from the same month last year.
The median sales price in February 2023 has increased to $230,000, up 4.2% from the previous year. With homes selling quickly and prices on the rise, the market is in need of more listings. Despite this, the median days on the market have increased by 33.3% from the previous year, showing a balanced market for buyers and sellers.
One reason for the decline in home sales could be the ongoing shortage of inventory, as mentioned by Anne Uchtman, president of the REALTOR® Alliance of Greater Cincinnati. The low inventory levels are driving up prices and creating a competitive market for buyers. As a result, some potential buyers may be hesitant to make a move until the market stabilizes.
Despite the decline in home sales, the median sales price in February 2023 saw a modest increase of 4.2% to $230,000, indicating that demand remains strong in the region. The median days on the market also increased by 33.3% from the same month the prior year to four days, which may suggest that some buyers are taking a more cautious approach and conducting thorough research before making an offer.
Looking ahead, the Greater Cincinnati housing market forecast for 2023 remains positive. The region is projected to experience steady growth in home prices, albeit at a slower pace compared to previous years. The rise in prices could incentivize more homeowners to put their properties on the market, which would help address the inventory shortage.
For sellers, the current market conditions present an opportunity to list their properties and potentially fetch a higher price than in previous years. However, they should be mindful of the competition and work with experienced real estate agents to ensure their properties are priced correctly and marketed effectively.
For buyers, the competitive market may require some additional effort to secure their desired property. This could include working with an experienced real estate agent who has strong relationships with local brokers and can provide insights into the latest listings. Buyers may also need to be flexible with their preferences and expectations, as properties may sell quickly and require a fast response.
Overall, the Greater Cincinnati housing market is facing some challenges but remains healthy and promising. The ongoing inventory shortage is a concern, but the strong demand and positive forecast suggest that the region will continue to be a desirable location for real estate investment.
Cincinnati Real Estate Market Forecast 2023-2024
The Greater Cincinnati area housing market has shown a decrease in sales by 24.8% compared to last year, and the inventory is down by 26.3% in February from January. However, active inventory has gone up by 26.3% from the same month the prior year. Despite this, the median sales price in February 2023 has gone up by 4.2% to $230,000 from $252,250.
The market is still favorable for sellers with median days on the market at 4, up 33.3% from the same month the prior year. The market seems to be lending itself toward a similar market to this time last year. Listings are still selling quickly, and sales prices are increasing every month.
Based on the data from Zillow, the average Cincinnati home value is $215,066, up 4.6% over the past year, and the median days to pending is 9, which is a good indicator that the market is favorable for sellers. The median sale-to-list ratio is at 0.990, which is lower than last year. The percentage of sales over list price is at 31.6%, which indicates that buyers still have some bargaining power. On the other hand, the percentage of sales under list price is at 53.5%, which suggests that buyers can still negotiate to some extent.
Looking at the MSA level forecast data, Cincinnati's housing market is predicted to grow at a modest pace. According to the data, the market will grow at a rate of 0.4% by March 2023, 0.5% by May 2023, and 1.1% by February 2024. While the market is not expected to experience significant growth, it is still forecasted to grow at a steady pace, which is good news for sellers.
In conclusion, the Greater Cincinnati area housing market is still favorable for sellers despite the decrease in sales compared to last year. The median sales price has gone up, and the median days to pending is low, indicating that buyers are still active in the market. However, the market is still showing some signs of balance as buyers can still negotiate to some extent. The forecasted growth of the housing market is steady, which is good news for those looking to invest in the area.
Cincinnati Real Estate Investment Overview
Cincinnati is a bustling city located in the southwest corner of Ohio, known for its strong economy, diverse culture, and affordable cost of living. The Cincinnati real estate market has seen steady growth in recent years, with home values increasing by 4.6% over the past year, according to Zillow.
Despite a slight decrease in home sales in February 2023 compared to the previous year, the market is expected to remain stable and strong throughout 2023 and 2024. With median days on the market of just 9 days and a high percentage of sales under list price, Cincinnati is a seller's market, indicating that it may be an advantageous time for sellers to list their properties.
Investors interested in the Cincinnati real estate market can benefit from the area's diverse range of neighborhoods, from the upscale and trendy Over-the-Rhine district to the more affordable suburban areas like Paddock Hills and Winton Place. The city's economy is thriving, with a strong job market and low unemployment rates, making it an attractive option for those seeking to relocate or invest.
Here are top reasons why Cincinnati's MSA real estate market may be a smart investment:
Strong Economic Growth:
Cincinnati's economy has been growing steadily, with a low unemployment rate of 3.6% and a diverse range of industries, including healthcare, education, finance, and manufacturing. According to the Bureau of Economic Analysis, Cincinnati's gross domestic product (GDP) has grown by 6.5% from 2016 to 2021, outpacing the national average of 4.6%. This economic growth has led to a strong demand for housing, making Cincinnati an attractive market for real estate investors.
Affordable Housing Market:
Cincinnati's housing market is relatively affordable compared to other major metropolitan areas in the United States. According to Zillow, the median home value in Cincinnati is $215,066, which is below the national median value. This affordability, combined with the city's strong economy and low cost of living, makes it an attractive option for young professionals and families.
Strong Rental Market:
Cincinnati has a strong rental market, with a vacancy rate of only 3.6% and average rent prices of $1,128 per month, according to RentCafe. Additionally, Cincinnati is home to several major universities, including the University of Cincinnati and Xavier University, which provide a consistent stream of rental demand from students and faculty.
Cincinnati's population has been growing steadily over the past decade, with a population of over 2.1 million people in the metropolitan statistical area (MSA) in 2021. According to the U.S. Census Bureau, the population of the Cincinnati MSA is projected to increase by 3.1% from 2020 to 2030. This growing population, combined with a strong economy and affordable housing market, makes Cincinnati a prime location for real estate investment.
Infrastructure and Transportation:
Cincinnati has a well-developed transportation infrastructure, including a major airport, several major highways, and a robust public transportation system. Additionally, the city has invested heavily in infrastructure projects, such as the Cincinnati Bell Connector streetcar, which connects several neighborhoods in the city. This infrastructure and transportation network make it easier for residents to commute and access amenities, which further increases the demand for real estate in the area.
Stable Real Estate Market:
Cincinnati's real estate market has remained stable over the past decade, with steady appreciation rates and low volatility. According to Zillow, the Cincinnati housing market has appreciated by 4.6% over the past year, which is in line with the national average. This stability makes Cincinnati an attractive option for real estate investors who are looking for a steady return on their investment.
Growing Tech Industry:
Cincinnati's tech industry has been growing rapidly in recent years, with several tech startups and established companies calling the city home. According to CBRE's Tech Talent Report, Cincinnati ranks 27th out of 50 U.S. cities for tech talent, with a 13.1% growth rate in tech jobs from 2015 to 2020. This growing tech industry provides a stable source of employment and further drives the demand for housing in the city.
In conclusion, Cincinnati's strong economy, the affordable housing market, strong rental market, growing population, infrastructure and transportation network, stable real estate market, and growing tech industry make it an attractive location for real estate investors. Whether you're looking to buy and hold rental properties or flip houses for a quick profit, Cincinnati's real estate market offers plenty of opportunities for savvy investors.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Cincinnati.
Consult with one of the investment counselors who can help build you a custom portfolio of Cincinnati turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Cincinnati.
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There are many other markets in the state of Ohio for real estate investing. Columbus is one of them. The Columbus real estate market is a bright spot in a declining region. It mixes smart redevelopment, quality of life, and growth to create a stable, slow-growing market that will be thriving well into the foreseeable future. If you’re looking to buy Columbus investment properties, it makes sense to do so when inventory levels are relatively high, like in the current phase of the pandemic. The surplus of available opportunities can lead to softer negotiations with sellers. Columbus has a lower cost of living than the national average.
Cleveland is another good market to invest in real estate. Cleveland is a notable exception to the decline of the Rust Belt cities. It has managed to reinvent itself, shifting from classic manufacturing to biotech and medicine. In the process, it has maintained its population and has strong potential for growth both economically and demographically.
Let us know which real estate markets you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.