Dayton-area home sales fall as mortgage rates and prices rise

She said she had worked with clients who had been looking for a home for several months and had seen mortgage rates go up, but noted that there were still many advantages to owning a home over renting, including including building net worth with payments.

The hyperactive market over the past two years has been difficult for buyers, Duncan-Hart said, who were constantly outbid and had to make quick decisions or risk losing. The new, calmer market could give more buyers a chance to get the home they really want.

“Last spring, writing five to eight contracts for the same buyer was nothing to me because we kept bidding higher,” Duncan-Hart said. “So we’re out of that market and going back to where it was before, where a house comes on the market today and it may not be on hold for sale for two or three weeks, which gives buyers the ability to walk in and through and make an offer without having to make a split-second decision.

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The number of homes sold in Ohio fell 15% in September this year from a year ago, Ohio Realtors reported. Meanwhile, the average sale price in Ohio reached $260,000, a 7% increase from September 2021.

“Ohio’s housing market is undoubtedly changing as rising interest rates lead to a reduced pace of sales among potential buyers,” said Ohio Realtors President John Manga, in a press release. “We are seeing an increase in the number of homes being put up for sale in many areas, which should expand housing options as we return to more balanced and stable market conditions.

“The continued rise in the average selling price reflects the understanding among consumers that housing in Ohio is a smart long-term investment,” Mangas said.

Higher mortgage rates reduce homebuyers’ buying power, meaning fewer people can afford to buy a home at a time when house prices continue to climb, albeit more slowly than they did at the start of this year. The combination of higher rates and house prices means that a typical mortgage payment for a homebuyer is up hundreds of dollars from where it was earlier this year.

The last time the average rate was above 7% was in April 2002, a time when the United States was still reeling from the September 11 terrorist attacks, but six years from the market crash. real estate market of 2008 that triggered the Great Recession.

Meanwhile, some homeowners have delayed putting their homes on the market because they don’t want to jump into a higher rate on their next mortgage.

Rising interest rates have presented challenges for people looking to buy homes in the Dayton area, said Joshua Todd, director of home loans for Day Air Credit Union.

“You have a double whammy of higher rates and higher prices,” he said. “Inventory is still limited in the housing market and these two factors are somewhat of a double whammy for our target audience of low to moderate income borrowers looking to buy a home and get a new one. .”

Todd said that while sales have fallen, house prices are still expected to rise over time and it’s important for someone considering buying a home to consider opportunity costs.

“We tell people maybe this is your forever home, but maybe this isn’t your forever loan,” Todd said. “Maybe you don’t like 7%, but in a few years you’ll probably have a good chance of refinancing that at a lower rate.”

The Associated Press contributed to this story


By the numbers

7% – Average US Mortgage Rate

1,470 – Dayton area homes sold in September

$238,039 – Average selling price in the Dayton area

$260,232 – Average home price in Ohio

Source: Dayton Realtors, Ohio Realtors