Home Improvement Securing a Property in Cincinnati’s Fast-Moving Housing Market
Across the U.S., single women purchased almost 9% more homes in the last quarter of 2020 than in the same period of the previous year. Cincinnati consistently ranks highly as one of the best places for single women to buy and, as their financial autonomy and independence grows, women continue to have a significant impact on the property market here. However, while they have been able to take advantage of lower interest rates and affordable prices, housing stock is now in short supply, so being prepared to proceed quickly with a purchase is important to retain buying power.
Deciding on a Down Payment
With a shortage of housing, some purchasers might decide to wait until next year to buy, while saving for a larger down payment. However, to make their money go further, now could still be a better time to purchase as interest rates are likely to be higher next year. Any rise in mortgage rates will affect the value of a home loan and could mean a reduction in buying power. The amount of down payment also has an impact on loan approval, and anyone with down payment questions needs to consider the pros and cons of a larger deposit. While a 20% down payment comes with benefits, in a fast moving market, taking too long to save could mean missing out on the perfect property.
Making an All Cash Offer
According to a report by the Bank of America, single women have been prioritizing buying their own home over other key life events such as getting married. Interest rates of only 3% means that now is a good time to buy, and Cincinnati has been named as the fastest-selling housing market in the US. However this also means that there is currently only one month’s worth of housing inventory at any one time which is leading to bidding wars and price increases. For higher earners who have been focused on buying a property for some time, buying a property outright could be a possibility. In a heated market, where sellers are receiving several offers in just a few days, cash buyers who are less likely to face any last minute financial issues are often more attractive.
Joining a Rent to Buy Program
Cincinnati has one of the highest percentages of renters of all US cities. Almost two thirds of households currently rent their property, and while potential first time buyers are struggling to secure a purchase, their rent is also increasing. One option for renters to get a foot on the property ladder is to join a rent to buy program, one of which has recently launched in Cincinnati. After an initial financial assessment using measures such as credit scores and level of income, clients are given a budget for a home that they then rent for a couple of years until they are in a stronger position to buy it.
Although the fast turnover of housing stock in Cincinnati is less favorable to buyers, low interest rates and median house prices still make it a good time to buy, especially for purchasers with down payments ready to proceed quickly with a purchase.