MARKETS & TRENDS
HOT MARKET
Market Spotlight: Cincinnati
GOOD FUNDAMENTALS AND FUTURE UPSIDE POTENTIAL
by Fred Heigold III with RentRange® - A leading provider of market data and analytics for the single-family rental (SFR) housing industry
$150,000. Single-family rental (SFR) rates in this area are over $1,000 a month, leading to many high-yield oppor - tunities for investors. The most expensive areas are to the northeast of the metro in Springdale and Mason with median prices between nearing $400,000. Similar to many other markets in the U.S., low invento - ry, paired with increased buyer demand from historically low interest rates, led to surging home prices in summer 2020. Home values in the Cincinnati market have in - creased 16 percent year-over-year since last September. New listing inventory dipped 30 percent in April but has returned to normal levels by July through current, show - ing the demand impact from low-interest rates.
he Cincinnati, OH single-family investment market has been a great choice for many years. It has been
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a favorite target for investors since the last recession for several reasons, including solid equity and income appreciation supported by rising population, job growth, and wage increases. HOME PRICE METRICS As of September 2020, the median single-family home value in the Cincinnati MSA was $228,000, a five-year increase of 35 percent and averaging seven percent year- over-year growth since 2015. Around the Cincinnati city proper, single-family homes have a median price near
Cincinnati MSA Home Price Forecast through 2021
DOWNSIDE RISKS:
UPSIDE POTENTIAL:
Low interest rates
COVID-19 cases leading to business restrictions
Higher demand Low relative prices Large demand for SFR in suburban communities New government stimulus
Forbearance period ending, increase in supply Eviction moratorium ending, some landlords may sell Vacation rentals may be sold Unemployment remains high, potential for further job loss in higher wage industries Seasonal drag on prices
The historically low interest rates and comparative - ly low home prices will continue to motivate buyers to compete for available inventory through the winter. Prices will remain seasonally supported in the near term due to low interest rates, and increased buyer motivation towards single-family properties in more
suburban areas. 2021 Cincinnati home prices should remain stable if COVID-19 outbreaks can be controlled, leading to a return in jobs. Real (non-stimulus) income will stay flat or decrease slightly as the economy ramps up. Mortgage interest rates are predicted to remain low through next
70 | think realty magazine :: december 2020
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