Median home price sets new record for Cincinnati metro area

The price of a typical house in the Cincinnati metro area hit a new record of $300,000 in May, putting pressure on potential homebuyers to make a decision before prices get further out of hand, according to at least one expert.

Housing "market prices continue to outpace peoples' ability to participate in it," said Clint Copenhaver, vice president of sales at Sotheby's International Realty. "Do what you have to do to get into the market now because it's getting further away from you, not closer to you."

The median home price for the Cincinnati area − which represents the price at which half of all buyers paid more and half paid less − was up about 3.4% from the previous high of $290,000 set in May last year, according to data from Redfin, a national real estate brokerage.

By comparison, the U.S. median home price was $440,000 in May, up about 5.3% from $418,000 in the same month last year, Redfin data shows.

Redfin data only goes back to 2012, but home prices have never been higher nationally or in the local market than they have been in the past decade.

At the same time, average mortgage rates have shot up from less than 3% five years ago to about 7% in today's market, adding hundreds of dollars − if not thousands − to typical monthly mortgage payments.

A house that costs $300,000 with 20% down on a traditional 30-year mortgage at a 7% fixed rate would result in a monthly principle and interest payment of about $2,271.

Perhaps surprisingly, home sales in the metro area rose slightly last month despite higher prices and other headwinds, from 2,390 homes sold in May 2023 to 2,553 homes sold in May this year, according to Redfin.

"People have just started settling in on interest rates in the 6%-7% range. There's just not as much sticker shock. (But) the challenges that homebuyers are facing now is unlike anything I've seen in my career," Copenhaver said.

The biggest challenge homebuyers face is simply the dearth of homes for sale, according to Donna Deaton, a veteran real estate agent with Re/Max Victory in Liberty Township.

"Houses are still selling because people want a house, and I think people have gotten used to the fact that prices are higher," Deaton said. "They'll figure out how they can afford it. We just need more inventory."

Inventory levels remained near historic lows in May with less than a two-month supply of homes for sale, according to Redfin.

A healthy housing market typically has at least a five- or six-month supply of housing, giving buyers more options, resulting in less competition and more moderate price growth.

This article originally appeared on Cincinnati Enquirer: Typical Cincinnati-area home price hits $300K for first time