What's up w housing market these days... it's crazy! (Cincinnati: sale, apartments)

[mmyk72]

I'm relocating to Cincinnati - office in West Chester- and my house buying process is like toilet paper buying during the pandemic. Everyone is out buying too and each house gets 10-20 offers. it's impossible to buy anything based on valuation because unless the offer is way above list price, it won't even get looked at. There are houses that just closed in March that changed hands only 1 yr ago and it's now getting 100K more than the previous sale (without much improvements to the property). Buyers bid up offering price like Monopoly money. Is this crazy?

It's no better to sit on the sideline because apartment rental is just as insane. 1 bedroom apt on a shorter contract term is close to $3000K.... that's if it's even available. So either throw that money down the toilet in rent or pay sky high prices to buy a house. Do you guys think property values will hold at the current levels or will it fall back down to earth?

[wrightflyer]

With moving from Boston to work in West Chester, I assume the move is a GE Aviation relocation? If so, I hope they are offering you a good relocation package. They may also have good inside resources for relocation help. If you are not with GE Aviation, I would check with your corporate HR department for housing relocation assistance. They may also help with finding a rental, either apartment or home.

As for your comments OP, I agree with all of the above except the rental comment. Maybe the apartment comes in around 3000K/month if you are renting for just 3 or maybe even 6 months. Most apartments (specifically the large corporate managed complexes and even more so the new, shiny corporate-owned complexes) look to take at least 9-month, if not 12-month lease terms.

Truthfully, I would recommend the 9-12+ rental route to buying over-asking in today's market. Unless interest rate hikes will move you out of the market for home buying, I would rent for at least a year, and that is my advice when moving to a new and unfamiliar metro, regardless of the housing market bubble. You can also save money by renting a smaller building. These are fewer to come by in West Chester and the newer, outer suburbs, but if you are willing to commute out of some of the core urban neighborhoods, you can find small 4, 6, 8, etc. unit buildings with 2 bedrooms for 1000-1500 a month. The smaller landlords will usually be more flexible with terms too, though that of course varies from unit to unit and what the landlord is willing to accomplish.

As for buying, 100% agree on the insane price jumps. I bought my top-floor NKY condo for 92K in late 2018. The same unit model but on the second floor of my building just went pending in 4 days for 160K. They bought their unit within a year of mine for 88K. It is crazy out there. Good luck and while it may be cheaper than Boston, we sure are seeing the inflation in housing costs hit in SW Ohio and NKY much harder than many East Coast metros.

[joe from dayton]

Yep, it's crazy everywhere and houses are selling for more than they are worth. Yes, I think the market will adjust to "normal" levels, but I don't know when that will be. Personally, I would rent for a year and see what happens. That will also give you time to get to know the area and make a more informed choice about where you want to buy. You can get a 12 month lease on a nice apartment for well under 3K. If it is just you (or a +1), you can get a nice apartment in a good area for less than a grand for a one-bedroom.

[ZnGuy]

Some areas of country may see prices settle down. Covid has caused many folks to move to more desirable areas, especially if they now remote working. I think the areas like sunbelt and the south in general are seeing so many people migrating from the north and the housing market is much stronger. As the economy heads toward inflation these growing markets may not get 20 bids and sell 10% over list in 1-2 ((as my neighborhood and city is experiencing). I also bought place in Hilton Head Island in ‘20 and housing prices have jumped 40% in the last year, I believe I read where it’s in top 5 in appreciation in US.

[Karl Lagos]

Originally Posted by mmyk72

I'm relocating to Cincinnati - office in West Chester- and my house buying process is like toilet paper buying during the pandemic. Everyone is out buying too and each house gets 10-20 offers. it's impossible to buy anything based on valuation because unless the offer is way above list price, it won't even get looked at. There are houses that just closed in March that changed hands only 1 yr ago and it's now getting 100K more than the previous sale (without much improvements to the property). Buyers bid up offering price like Monopoly money. Is this crazy?

It's no better to sit on the sideline because apartment rental is just as insane. 1 bedroom apt on a shorter contract term is close to $3000K.... that's if it's even available. So either throw that money down the toilet in rent or pay sky high prices to buy a house. Do you guys think property values will hold at the current levels or will it fall back down to earth?

Sit it out and rent. Wait for the crash. W. Chester is a little a little strange locally as it attracted people from multiple areas of greater Cincy....not just the employment centers. Assuming you have a family and want a house and renting seems sucky. Be patient as possible.

[notnamed]

We bought new last year. Did a short term rental while waiting for construction. Just a matter of getting your name on a lot and you're not in some bidding war like you are with "used" houses. Maybe even find a spec or model house ready to go.

[Ohiogirl81]

Can you rent for awhile until the market isn't so nutty?

I just looked at the Zillow estimate for my old house in Madisonville. I can't afford to live there anymore.