Linda Glover, HUFF Realty
Hi guys! It’s been a hot second since I have written in my blog. My business took off like a rocket and I got buried in work! I had to wait until I went full-time in the real estate biz before I returned to writing here.
First and foremost- I want you to know that I am here to be your trusted real estate advisor. I can talk all day long about how to be a creative and open-minded buyer walking into a property and a creative and open-minded seller when getting your home ready to list. I have endless blogs to come on those topics and you can look at my previous blog posts for those tips. HOWEVER, I want to talk to you right now about how to have an open mind to the current market.
Q2 going into Q3 in the Greater Cincinnati/NKY real estate market has been dynamic to say the least. After a record run of eye-popping appreciation over the last several years interest rates have shot up. We started 2022 sitting just at a 3% mortgage interest rate and are hovering around 7% today. Those two dynamic factors have led to some confusion in the marketplace.
Here are some truths to consider:
- Below is a chart of appreciation rates in Greater Cincinnati in the last 20 years. The total appreciation over the last 3.5 years (42%) is greater than the total appreciation of the 17 years prior (33.6%). Historically, a region experiencing 3-5% appreciation over one year was solid and worth celebrating. Draw a trend line with your finger through that graph. Accumulated appreciation should continue to go up, even if those green bars shrink a little in the next few years. It still goes up.
- If you need to sell your house, there is no need to panic. The MLS data is showing me that the demand is still there. It may take 2-4 weeks to get your house under contract now, compared to the 48 hours of a year ago. Still not too shabby!
- The dramatic interest rate increase has put that record appreciation on ice and put on the brakes a bit. The data points us to believe that we are still going to finish out the year with strong appreciation. The brakes being put on by the interest rate increase needed to happen because housing affordability was about to slip through our fingers.
- Buyers- listen up. I do not have a crystal ball, but all prior data and future predictions show that home prices will continue to increase. Does anyone know what will happen to interest rates? That’s a hard no. There is no better time to buy than right now. You go into a mortgage with the understanding and realistic expectation that IT IS WHAT IT IS. If the rates go down, sure, you can re-finance. But listen up- you cannot count on that. You just can’t. Rates could go up! Don’t get burned with the expectation that the rate will decrease. If you are in a position that you need to buy, then go ahead and do it. Team up with your trusted real estate advisor and hop into the market with clear eyes and a solid plan.
There you go! That’s the best advice I can give right now. Follow the data, pay attention to the changes, buy and sell with clarity and understanding.
I’m licensed in Kentucky (Northern Kentucky) and Ohio (Greater Cincinnati) and I am more than happy to help you with your real estate needs. http://www.lindaglovernky.com, 859.444.7392, email@example.com