Cincinnati Real Estate prices surge, showing positive news for the long term health of the market. Yet, how is it that selling fewer houses year over year and month to month is a good thing? It has less to do with sales and more to do with price and inventory control according to the most recent numbers from the Cincinnati Area Board of Realtors.
Housing Prices Rise in Cincinnati
The great news from the report is that home values are rising, continuing a trend that started 2 years ago. The January average home selling price increased to $150,908 vs. $138,592 a year earlier, an 8.9% increase. The average price has increased year-over-year for 23 consecutive months.
We are gaining back the ground lost in the recession. And that is a very good thing for home owners who were worried about losing money when they sell. But be ware – just because you waited a few years to sell does not mean that you automatically will get more money for your house. It is the exact opposite…and here is why: Inventory!
Real Estate Inventory Shrinks in Cincinnati
The inventory of home for sale is in decline. There are fewer homes listed for purchase. The inventory of homes as of January 31 continued its year-over-year declining trend to 8,580 from 9,451 a year ago, down – 9.2%. January inventory decreased – 2.0% compared to December 2013. Basic economics are at play here. Supply is shrinking and demand is pretty constant so prices increase.
Fewer Home Sales are a Good Thing
So why are fewer home sales a good thing again? When taken into context along with higher prices it signals that buyers are buying up homes in good shape and are willing to pay more for them. So if you are selling your home it will pay off if you take the time to prepare it properly for the market. Well priced homes in great shape are selling for a premium to an eager buyer pool with not a lot to choose from.
If you are thinking about selling your home call me today at 518.140. We can talk about how to prepare it for the market to get the best possible price in the shortest amount of time.