Study warns of potential housing market downturn

Local News

A new study says the Dayton housing market could be at risk of a downturn.

On a nationwide list of 40 cities, GOBankingRates ranked Dayton 9th most at risk of a housing crash this year.

According to the organization, the study looked at several factors, including foreclosure rates, percentage of homes with mortgages in negative equity, mortgage delinquency rates and homeowner and rental vacancy rates.

Sham Reddy, president-elect of the group Dayton Realtors, told 2 NEWS he believes residents should not worry for now.

Reddy did not completely rule out any changes, but he said the local housing market remains strong.

Reddy said he does not see any signs of a downturn on the way.

“The real estate market, it never slowed down for wintertime,” Reddy said. “Usually it does slow down for wintertime. And it just kept going.”

Reddy said he hasn’t seen a spike in foreclosures. For about the past four years, there have been more buyers than properties for sale in the area, he added.

According to officials with GOBankingRates, suburbs might be at a lower risk for a decline in housing prices.

“The number of vacant properties outside the city of Dayton is still very low,” Reddy said.

“You see some houses going on the market, and right away they’re already pending sales, so for every house that goes up, there’s two or three people looking at it,” said Chris Gray, who recently bought his first house in Dayton.

As a newer homeowner, Gray said he is not concerned based on his recent experience.

“I’m just happy that I have my own home right now, so I’m not really worried about that,” Gray said.

If the housing market does change, it could take about a year for homebuyers and those selling properties to feel the effects of those differences, Reddy said.

Other Ohio cities were also included on the list from the GOBankingRates study. Cleveland ranked 7th, Toledo came in 13th place and Akron ranked 16th.

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