While
DeRoussel’s
experience
sounds
exactly
like
many
of
the
stories
that
emerged
from
the
pandemic-fueled
homebuying
frenzy
of
2020
and
2021,
this
happened
just
a
few
weeks
ago
in
early
April
2024.

“It
is
extremely
competitive,”
DeRoussel
said
of
the
Cincinnati

housing
market.
“We
wrote
five
offers
this
weekend
and
out
of
five,
four
were
rejected.
Buyers
are
really
struggling.”

According
to
data
from


Altos
Research,
the

Cincinnati
metro
area
(which
includes
portions
of
Ohio,
Kentucky
and
Indiana)
currently
has
a
Market
Action
Index
score
of
54,
while
the
state
of
Ohio
has
a
score
of
55.
Altos
considers
anything
above
a
30
to
be
a
seller’s
market.

“Cincinnati
is
a
great
place
to
live,”
said

Julie
Back,
the
executive
sales
vice
president
of

Sibcy
Cline
Realtors.
“The
cost
of
living
is
low,
it
is
a
fabulous
city
with
all
the
big
city
amenities
—
we
have
all
the
arts,
the
culture,
so
many
Fortune
500
companies.
…
It
is
a
wonderful
area
of
the
United
States
and
people
are
starting
to
realize
it.”

Although
there
is
no
doubt
among
local
real
estate
professionals
that
demand
is
high
in
the
Cincinnati
housing
market,
agents
say
the
area’s

low
inventory
situation
is
only
adding
to
the
challenge
facing
consumers.

As
of
April
19,
the
Cincinnati
metro
area
had
a
90-day
average
of
1,864
single-family
active
listings,
according
to
data
from
Altos
Research.
Although
this
is
up
from
an
all-time
low
of
1,429
active
listings
in
early
May
2022,
it
is
down
from
the
3,021
listings
recorded
in
late
April
2020,
a
little
over
a
month
into
the
COVID-19
pandemic.

Additionally,
while
the
number
of
new
listings
hitting
the
market
each
week
in
the
Cincinnati
metro
area
is
certainly
on
the
rise
—
jumping
from
a
90-day
average
of
214
in
late
February
to
252
in
late
April
of
this
year
—
the
number
is
still
well
below
the
average
of
367
new
listings
recorded
in
late
April
2020.

“I
think
a
lot
of
it
has
to
do
with
there
are
just
fewer
houses
available,”
said
Mark
Meinhardt,
a
senior
vice
president
at
Sibcy
Cline
Realtors.
“Baby
boomers
are
not
moving.
They
are
staying
put
in
their
houses
longer,
plus
you
have
a
rate-lock
effect.
The
interest
rates
are
a
huge
factor.

“There
are
so
many
people
who
made
a
decision
in
the
past
24
months
to
improve
their
house
rather
than
move
because
it
didn’t
make
sense
with
the
interest
rates
unless
they
had
to.
So,
they
are
just
hunkering
down.”

Looking
further
into
the
spring
and
summer
months,
agents
are
optimistic
that
more
inventory
will
hit
the
market,
but
they
do
not
believe
it
will
be
enough
to
satiate
demand.

“We
are
going
to
see
an
increase
in
inventory.
Cincinnati
is
a
very
predictable
market
since
it
has
a
lot
of
families,”
DeRoussel
said.
“The
typical
Cincinnati
consumer
decides
to
list
their
house
right
before
school
gets
out
with
this
idea
that
they
will
sell
their
house,
go
on
vacation
and
then
move
into
their
new
house.
So,
we
are
expecting
an
additional
two
or
three
listings
to
hit
the
market
each
week
now,
but
it
is
still
extremely
low.”

As
would
be
expected,
the
tight
inventory
and
high
level
of
demand
frequently
results
in
bidding
wars
that
drive
up
home
prices.
Data
from
Altos
Research
shows
that
the
90-day
average
median
list
price
for
single-family
homes
in
the
Cincinnati
metro
area
has
risen
from
$284,800
in
April
2019,
prior
to
the
onset
of
the
pandemic,
to
$389,250
as
of
April
24,
2024.

“I
have
some
families
that
bought
houses
four
or
five
years
ago
for
$225,000,
and
they
want
something
bigger
and
are
excited
that
they
can
sell
now
for
$300,000,
but
their
budget
for
the
new
house
is
$350,000,”
DeRoussel
said.
“With
that
budget,
they
aren’t
really
moving
up.
They
are
just
getting
the
same
house
and
maybe
not
even
in
as
good
of
condition.
If
you
want
to
move
up
at
that
price
point,
you
have
to
be
able
to
look
at
something
that
is
like
$500,000.”

Agents
say
they
are
also
seeing
a
lot
of

appraisal
gap
clauses,
inspection
waivers
and
free
leasebacks
popping
up
in
offers
as
buyers
look
to
improve
their
chance
of
winning
a
house
in
the
current
market.

But
rising
prices
are
not
the
only
financial
challenge
buyers
are
having
to
contend
with
right
now.
In
addition
to
keeping
prospective
home
sellers
in
their
houses
longer,

higher
mortgage
rates
are
also
taking
a
toll
on
buyers.

“Interest
rates
being
higher
hasn’t
really
necessarily
slowed
down
demand,”
Meinhardt
said.
“But
buyers
have
had
to
adjust
their
expectations
or
their
strategies
when
it
comes
to
mortgage
financing.”

Meinhardt
and
DeRoussel
also
noted
the
large
number
of

investors
currently
active
in
the
Cincinnati
housing
market.
They
are
also
making
it
hard
for
owner-occupant
buyers,
especially
those
looking
in
the
$500,000-and-under
price
points.

“We
are
seeing
a
lot
of
investors
and
some
flippers,
but
others
are
buying
and
holding,”
Meinhardt
said.
“I
think
within
the
Midwest,
our
prices
are
certainly
more
conducive
for
investors
than
on
one
of
the
coasts.
But
it
is
really
hard
for
those
first-time
homebuyers
at
the
lower
prices
because
they
are
competing
with
both
institutional
and
mom-and-pop
investors.”

Despite
the
challenges,
local
agents
feel
that
things
will
continue
to
heat
up
as
the
market
moves
further
into
the
spring.

“We
are
just
getting
fired
up,”
Back
said.
“It
is
not
going
to
slow
down.
You
are
just
going
to
have
to
learn
to
deal
with
it.
Bankers
are
getting
their
interest
rates,
sellers
are
getting
their
prices
and
buyers
are
learning
to
step
up
to
the
plate.”