The real estate market is always dynamic, and in hot spots like Centerville, Springboro, Lebanon and surrounding areas, you can gain a significant advantage by knowing how the market could behave in the future. Businesses and individuals need to stay on top of changes to make the best decisions for their finances and long-term growth.
At a national level, there is a lot of speculation about what the future holds for real estate. Even at a local level, weighing all the external factors influencing the market is challenging. No one can know for sure, but exploring some of the possibilities is interesting. Take a look at the forecast for our local market for the remainder of 2023.
Prices remain steady, buyer pool still strong
In 2022, several factors caused prices to rise in a short time. The economy was recovering from the pandemic. Because people were spending more time at home, HOME became their focus. Home repairs, remodeling and the ever evolving Home Office became the focus for many homeowners across the nation. In 2008, the average length of time a homeowner stayed in their home was 10 years, in 2018 it increased by 3 years, to 13 years. Today's average is 16 years and because more Americans are buying investment properties, combined with homeowners remaining in their homes longer, simply put, it has caused a slight housing shortage. And this housing shortage has, in turn, caused a higher value on homes that are available on the market.
For the remainder of 2023, prices are expected to maintain, not rise or fall, and the buyer pool remains significant.
There will be more first-time buyers
In the coming year, many factors will contribute to an increase in first-time buyers. The economy is recovering at a national level, and more people are entering the workforce. While interest rates remain high, rent increases are the main factor pushing first-time buyers into the housing market. Renters are weary of throwing money away each month on borderline unaffordable homes and apartments. It’s safe to say more renters will begin to look into purchasing a home in 2023.
With an influx of buyers, the Centerville and surrounding real estate market will remain favorable to sellers. The demand is higher than the supply, and even though new homes are being built, the rate of construction is too slow to meet the demand fully.
Outlook for buyers and sellers
In markets like Centerville, Ohio and surrounding areas, the inventory has remained low. This has given many sellers the opportunity to sell with a greater equity position. However, this doesn’t come without work! Houses that sell fast, and for the most money, are those that are extremely well maintained, clean and remodeled.
As a buyer, you should be prepared with an updated pre approval letter (within 7 days of writing an offer). Rates are changing so often that sellers agents are going to encourage their clients to only accept an offer with a very recent pre approval letter, and will call the lender to verify all of the information received from the buyer is updated and accurate. Buyers should consult with their real estate agent to write the best offer. Homes that are priced for the market, well cared for, clean and remodeled are going into multiple offers. The difference is in 2023, a seller is not receiving 10-15 offers, they are receiving 3-5 offers.
The Wenzler Concierge Group is a team of Dayton and Cincinnati real estate experts led by Juliet Wenzler. From start to finish, Juliet and her team will ensure a seamless experience to meet your needs with local expertise and concierge services.
*Header photo courtesy of Shutterstock
