A few months ago, Zillow predicted Cincinnati to be the nation’s second-hottest market in 2024.

Why? And how do we talk about this with our clients and prospects?

Understanding Zillow’s Ranking

So why has Cincinnati earned such a prestigious ranking from Zillow? It boils down to three key factors:

1. Appreciation: Unlike many larger municipalities that saw depreciation last year due to rising interest rates, Cincinnati experienced appreciation. This trend is a strong indicator of the robustness of our local market. All signs point to appreciation in 2024 as well.

2. Jobs to Housing Permits Ratio: Cincinnati continues to see job growth that surpasses the issuance of new housing permits. This imbalance increases demand for housing driven by new job creation, placing upward pressure on real estate prices.

3. Speed of Sale: With an average days on market of just eleven in 2023, Cincinnati boasts one of the fastest sale rates in the country. This swift turnover is a testament to the high demand, low inventory, and competition in our market.

As Realtors, comprehending these reasons is the first step. Being able to articulate them to your clients, friends, and family within your sphere will not only position you as a knowledgeable professional but also instill confidence in your clients’ real estate decisions.

Communicating With Clients

How should you communicate this information with your clients? It’s all about tailoring this information to address the specific concerns and opportunities for buyers, sellers, and investors.

For Buyers: Emphasize that Cincinnati’s real estate fundamentals are strong, which should insulate future home values. While the prospect of multiple offers may seem daunting, reassure your buyers that buying in such a high-demand market is a solid decision for the long term.

For Sellers: This is an opportune moment to sell. With the market’s current trajectory, sellers can expect to receive attractive offers with great terms, provided their property is well-positioned in terms of price and presentation. Highlight the potential for a bifurcated market: 1) properties that are priced right and show well receive swift and competitive offers; and  2) properties that are overpriced and/or do not present well are not selling as quickly.

For Investors: Some investors are beginning to struggle with the rising price of homes in Cincinnati as investment property cash flow becomes less compelling. However, we must remind investors that part of their return on investment is appreciation, and we will continue to see appreciating this year.

Leveraging This Insight

This information is more than just conversation; it’s a strategic advantage. Use it to educate and guide your clients through their real estate journeys, whether they’re looking to buy a home that will appreciate in value or sell for the best possible terms.