Was 2024 the worst real estate year ever?

Dear clients and friends,

Well, it’s official—2024 has earned the dubious title of being the worst year in real estate over the past 30 years. But why? Let’s take a closer look at what caused this unprecedented downturn and how Cincinnati has stood out as a surprising bright spot amidst the national challenges.

The National Picture: Fewer Transactions Than Ever

In most years, the U.S. real estate market sees at least 4 million transactions, even during challenging times like the Great Recession. But in 2024, that number dropped to just 3.85 million. That’s a significant decline, even compared to the worst economic periods of the past.

The reasons? Two major factors:

1. Affordability Challenges:
   Rising interest rates and increasing home prices have made it more expensive for many Americans to buy a home. This financial strain has kept countless potential buyers on the sidelines.
2. Low Inventory:
   Simply put, there aren’t enough homes on the market. The reasons behind this shortage are complex and deserve their own deep dive, but the combination of fewer homes and higher costs has created a market that’s tough for buyers and sellers alike.

Cincinnati: A Bright Spot in a Tough Year

Despite the national slump, Cincinnati has defied the odds. While much of the country has seen significant drops in sales, our local market has actually experienced a 7% increase in transactions.

Why is Cincinnati thriving when others are struggling?

• Affordability:
  Compared to other mid-sized cities, Cincinnati remains one of the most affordable places to live. When you consider the cost of owning a median-priced home versus the median income, Cincinnati outshines many other Midwestern cities.
• Predictions Proved Right:
  Earlier this year, Zillow called it: Cincinnati was forecasted to be one of the hottest markets in the country, and the numbers back that up.

What This Means for You

Every real estate market is unique, and even within Cincinnati, trends can vary from neighborhood to neighborhood. Whether you’re curious about your home’s value, thinking of buying or selling, or just have questions about what’s happening in your area, we’re here to help.