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After months of waiting, many potential homebuyers in Cincinnati and Northern Kentucky who were priced out due to high mortgage rates and affordability challenges now have a chance to enter the real estate market. With mortgage rates trending down, the current market is a prime opportunity for buyers, and this window may not last long.
If you’ve been delaying your move, here’s why now might be the ideal time to revisit your plans.
As you evaluate your options and decide whether to buy now or wait, consider this: What do you think other homebuyers in the Cincinnati and Northern Kentucky areas will do?
The reality is, if mortgage rates continue to decline as experts forecast, more buyers will flood back into the housing market. A recent Bankrate survey reveals that over half of homeowners would be motivated to purchase a home if mortgage rates drop below 6% (see graph below):
With rates already hovering in the low 6% range, we are not far off from hitting that mark. When rates drop into the 5% range, buyer activity is expected to increase, leading to more competition in markets like Cincinnati and Northern Kentucky.
This rise in demand is likely to push home prices higher, potentially erasing some of the benefits of securing a slightly lower interest rate. Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), highlights:
“The downside of increased demand is that it puts upward pressure on home prices as multiple buyers compete for a limited number of homes. In markets with ongoing housing shortages, this price increase can offset some of the affordability gains from lower mortgage rates.”
So while waiting to buy might seem like a good idea, it could backfire if home prices rise faster than your savings from a reduced rate.
**What This Means for Cincinnati and Northern Kentucky Buyers**
Right now, you have the opportunity to get ahead of the increased competition. The current real estate market in Cincinnati and Northern Kentucky offers a buyer’s sweet spot. Why? Because many buyers are still waiting on the sidelines, which means less competition for homes. This is an advantage for you.
Affordability has already improved. Recent drops in mortgage rates have made homeownership more accessible in both the Cincinnati and Northern Kentucky markets. As Mike Simonsen, Founder of Altos Research, explains:
“Mortgage payments on the typical-priced home are 7% lower than last year and are 13% lower than the peak in May 2024.”
Additionally, while the supply of homes remains limited, it’s higher than it has been in years. Ralph McLaughlin, Senior Economist at Realtor.com, points out:
“The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.”
This means you have more housing options in Cincinnati and Northern Kentucky than you’ve had in recent years.
With fewer buyers currently searching, improving affordability, and a greater selection of homes, now is the time to find your perfect property before competition heats up again.
**Why Waiting Could Cost You**
If you’re holding off for the “perfect” time to buy, remember that it’s nearly impossible to time the real estate market perfectly. The longer you wait, the higher the chance that market conditions in Cincinnati and Northern Kentucky will change—and not necessarily in your favor. Greg McBride, Chief Financial Analyst at Bankrate, warns:
“It’s one of those things where you should be careful what you wish for. A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”
**Bottom Line**
Don’t wait until competition and prices rise further. Right now, you have the opportunity to buy a home in Cincinnati or Northern Kentucky while the market is in a favorable position for buyers. Connect with a local real estate agent to ensure you’re taking full advantage of this sweet spot.
