A Year Like No Other in Cincinnati Real Estate

As we wind down the year, I find myself reflecting on the rollercoaster ride that has been 2023 in the world of Cincinnati real estate.

Interest Rates on the Rise

First and foremost, let’s talk about the elephant in the room – interest rates. Over the past twelve months, they’ve skyrocketed, reaching a staggering 8%. That’s a 20-year high, and it’s shaking up the real estate landscape. The high interest rates, coupled with a contracting market, have created a challenging environment for both buyers and sellers.

Sales Contracting Amid Economic Jankiness

Now, let’s address the contracting sales. The janky economy we’ve been a part of has played a significant role in pushing interest rates higher, causing a dip in consumer confidence. Buyers are wary of purchasing at an 8% interest rate, and sellers are hesitant to let go of their homes, especially if they’ve locked in a more favorable 4% rate. Consequently, we’ve witnessed a substantial 23.8% contraction in sales over the past twelve months – nearly a quarter of the market affected.

MLS Drama and Technological Turmoil

As if that weren’t enough, Cincinnati Realtors have had their fair share of MLS drama. Our multiple listing service, the technological backbone of our industry, fell victim to hacking and ransomware. For three weeks, we operated without an MLS, and when a replacement was finally launched, it wasn’t ready for primetime. It took a total of three months to revert back to our old system, causing stress and difficulty for your local real estate professionals.

Lawsuit Bombshell

And then, of course, there’s the bombshell lawsuit. Several major brokerages, including Keller Williams and the National Association of Realtors, were found guilty of colluding to inflate commissions for consumers. While the verdict is being appealed, it has undoubtedly added another layer of complexity to an already tumultuous year.

A Year-End Note

So, here we are, at the end of 2023 – a year that can only be described as an odyssey for your Cincinnati real estate friends. As you gather with loved ones over the holidays, spare a thought for your real estate agents. It’s been a tough year, and a little kindness goes a long way.

Looking Ahead to 2024

As we close this chapter, I want to express my gratitude for your continued support. Here’s to a safe, happy, and healthy New Year’s season. We’ll take a brief pause during the holidays but look forward to reconnecting with you in January. Until then, enjoy the festivities and, as always, thanks for being a part of our journey.