DAYTON, Ohio (WDTN) — Dayton Realtors said home sales are holding strong in the Miami Valley, even as numbers fall nationally due to high prices and mortgage rates. They’re experiencing a 4% increase in sales right now compared to May 2021. At the same time, the Associated Press is reporting the national average amount for home sales has decreased more than 8% compared to this time last year.
When COVID-19 hit, Dayton Realtors said outdoor living became very important, putting in pools and Ohioans wanting more land on their property. Now, finally over two years since the pandemic started, the housing market could start to shift.
“It’s very unpredictable at the moment and we are definitely feeling a shifting of the market,” said Dayton Realtor President Billie Duncan-Hart.
The U.S. Federal Reserve increased the federal funds rate last Wednesday by .75%, the highest increase since 1994. Fast forward to today, just barely a week later, the housing market is already shifting.
“It’s still historically a low interest rate, it is double what it was this time last year, and unfortunately it is necessary that the Feds raise the interest rates,” said Duncan-Hart. “It does help offset inflation, it will but it’s painful.”
Duncan-Hart has been in the real estate industry over 30 years and said ever since the pandemic started, she has never seen the market have these dramatic shifts. Even with inflation challenging the U.S. economy, she doesn’t anticipate the current market to fall similar to the housing market crash of 2007 to 2008.
“This is not a repeat of 07’ and 08’, the problem we had then was a lot of lenient lending rules, all of that has been fixed and much harder to get a loan than back then,” said Duncan-Hart.
Seeing the national average take a sharp decline, Duncan-Hart said she anticipates it to eventually have a ripple-effect here in the Miami Valley, but only time will tell.
“It doesn’t scare me but seeing that some other parts of the country are starting to tick down tells me it’s coming,” said Duncan-Hart.