A number of my discussions with other real estate agents and clients have focused on the state of the Cincinnati Real Estate market after the $8,000 tax credit. The situation is very postive because there are a number of other factors that are supporting a very active residential real estate market in Cincinnati and elsewhere in the nation.
A recent survey by Better Homes and Gardens found a number of factors weighing on the minds of potential buyers concentrated on the current level of affordability in the market. The research shows that nearly two-thirds (63%) believe it is a “buyer’s market,” more than half (54%) feel that mortgage rates are affordable, and 70 percent indicate that there are affordable homes on the market. The reason that buyers are still buying is that they can afford to buy good properties at lower prices with affordable loans.
I believe that it is this overall affordability that will support the residential market through the next year until the overall economy stabilizes and. As the economy heats up and interest rates rise look for the overall housing prices to rise also. Hopefully they will be in tandem with lower unemployment and increases in wages.