While the market looks strong, everything depends on what they do in D.C.
Today’s topic for my Northwest Ohio real estate update is, what will happen with property prices here in Northwest Ohio?
First, anything that is predicted is subject to the guys in Washington, D.C., because so much of the value of our money is controlled by what happens in Washington and the Federal Reserve Bank. Are they going to lower interest rates? Are they going to increase interest rates? Are they printing more money, known as quantitative easing? Are they passing tax cuts? Are they going to increase taxes? The best forecast can be eviscerated and destroyed in one day by policy decisions made hundreds of miles from here.
Second, I have ears to hear what people from outside of Northwest Ohio tell me, and they think that our property values are very reasonable. People are moving here from both coasts just to buy property and work virtually or work online or change their job to get the quality of life here with our property prices. It’s not the weather that has sold them in Northwest Ohio. It’s our property values.
Third, I have eyes to see that we are not building enough houses. The days of 20 developments happening simultaneously in and around Toledo, punching out lots and houses, focusing on starter homes, is a distant memory of early in my career. The population, however, is rising. There’s more traffic, more people living here, more apartments, more jobs, and more factories. People are living longer. People are moving here. But almost no one is developing starter homes, which puts its own pressure on property values.
Fourth, I am seeing a lock-in effect. That’s where sellers who own a home with a 2.75% 30-year fixed rate mortgage are looking to buy a new, bigger home, but they’re hesitant to buy it because they’ll have to pick up a 6.99%, 30-year fixed rate mortgage. They become locked into a house that they no longer want but cannot afford to move out of, so they might add on to it: Fix the basement, add a master suite, add a Florida room, or add a pool—once again increasing property prices in those neighborhoods.
These observations make me believe that prices in Northwest Ohio will hold strong and even increase and not decrease. For buyers: buy if you have nothing to gain by waiting. If you’re a seller, you’ll get a great price.
“Property values are strong and going stronger every day.”
So property values are strong and getting stronger every day. The real estate market is constantly changing. It never stops, and we do things in marketing and selling homes that were impossible 20 or 30 years ago. So my team is continuously evolving, and we’re ready to help you and your family get the right help for your real estate problems. Our team motto is simple: A tradition of trust in Northwest Ohio real estate. This tradition of trust ethos works. It’s based on proven biblical concepts about always telling the truth and treating others as you would want to be treated—treating them even better. We can’t wait to help more people buy, sell, manage, and grow their real estate holdings.
So reach out to us today, whether on our website, by phone, or by email. We would be happy to serve as your resource for all of your real estate needs.
