Market Monday 2/10/25
The Cincinnati housing market has demonstrated resilience and growth as of January 2025, with notable trends in home prices, sales activity, and mortgage rates.
Home Prices and Sales Activity
In January 2025, the median sales price in Cincinnati was $265,000, reflecting a 6.27% increase from $249,375 in January 2024. The average sales price reached $332,059, marking a 9.96% rise from $301,983 in the previous year. These figures indicate a robust appreciation in property values over the past year.
However, the market has experienced a slowdown in sales pace. Homes are now spending an average of 57 days on the market, compared to 17 days during the same period last year. This change suggests a shift towards a more balanced market, providing buyers with increased opportunities.
Mortgage Rates and Lending Environment
As of early February 2025, mortgage rates have remained elevated. The average rate for a 30-year fixed mortgage is approximately 6.95%, while 15-year fixed mortgages average around 6.12%.
These higher rates have influenced buyer affordability and could impact purchasing decisions.
Despite the Federal Reserve's rate cuts in late 2024, consumers have yet to experience significant decreases in borrowing costs for mortgages, car loans, or credit cards. This persistence of high rates continues to pose challenges for prospective homebuyers.
Market Insights and Trends
The increase in the number of homes actively for sale, growing by 24.6% compared to last year, indicates a positive trend for inventory levels. This rise in available properties may provide buyers with more options and contribute to a more balanced market.
Advice for Buyers and Sellers
For buyers, it's crucial to:
Stay Informed: Keep abreast of current mortgage rates and explore different loan options to secure the most favorable terms.
Be Prepared: With homes spending more time on the market, buyers may have increased negotiating power. Ensure your finances are in order to act swiftly when the right opportunity arises.
For sellers, consider:
Pricing Strategically: While home values have appreciated, the extended time on market suggests the importance of setting a competitive price to attract potential buyers.
Enhancing Appeal: Investing in minor renovations or staging can make your property more attractive, potentially reducing time on the market.
The Cincinnati housing market continues to evolve, presenting both opportunities and challenges. Staying informed and adaptable will be key for all participants in navigating this dynamic landscape.
If you are interested in more information about the housing market in Cincinnati, Ohio - or buyer or selling a home - please contact Kim Douthit, realtor with Sibcy Cline at 513-520-6091.