Known for its wooded expanses, natural beauty, and exceptional housing, the picturesque neighborhood of Indian Hill features rambling hills, winding roads, grand estates, and dignified homes, making it one of the premier neighborhoods in the Cincinnati area. Its phenomenal location near upscale shopping, exceptional entertainment, and abundant fine dining reflects the luxurious lifestyle residents of this fine community enjoy throughout the year.
With all of this in mind, it’s easy to see why many people are interested in purchasing real estate here. Whether you are selling or buying, you’re probably curious about what 2023 has in store for Indian Hill’s real estate market. While we can’t see into the future, the latest developments and trends can give us an idea of where the market is heading.
Indian Hill Real Estate Market Forecast for 2023
Market prices, forecasts, and trends for 2023 are an interesting part of the real estate landscape in every area but are particularly interesting in the upscale, refined neighborhood of Indian Hill. This exclusive community remains a seller's market with tight inventory and increasing prices.
The trends are showing a positive outlook for 2023. With interest rates lowering, more homes are slowly hitting the market. Numbers for the Indian Hill real estate market show an increase in the sales price by 13.4% in March 2023 versus March 2022. The number of homes on the market increased by 40.9% between February 2023 and March 2023. As of February 2023, there were 44 homes on the market in Indian Hill’s 45243 zip code. As of March 2023, the number has increased to 62 homes.
Home values slightly increase
Home values increased slightly. The average sales price of a home is $1,450,000, up 13.4% since last year. However, the number of homes sold during this same period dropped considerably. While this exclusive neighborhood has retained its value, the available homes remain low but appear to trend upward slowly.
Early 2023 saw rising interest rates, now dropping in April 2023
Mortgage lenders set a mortgage rate on every loan they secure. Some homeowners choose a mortgage with a variable rate. A variable rate mortgage means the interest rate can change. On the other hand, some homeowners secure a fixed-rate mortgage. When buyers secure a fixed-rate mortgage, the interest rate remains the same and does not change throughout the life of the mortgage.
Depending on a homebuyer's credit profile, a mortgage rate can differ from buyer to buyer. Remember that the rates decrease or increase depending on the interest rate cycle, meaning interest rates can significantly impact the real estate market.
Fortunately, mortgage rates are beginning to decline as of April 2023. This decline could indicate that the real estate market is entering a period of recovery. Typically, when borrowing costs drop, there is an increase in existing home sales, contract signings, and new construction. All of these indicators are in play. However, bidding wars and multiple offers are still occurring as buyers feverishly work to secure housing, as the inventory of available homes is still stubbornly low.
Current investing indicators will help landlords
The housing market will continue to be affected by mortgage rates. Although interest rates are beginning to decline, this is still an important issue for many sellers and buyers. Some buyers have slowed or stopped their search for properties since, even with the lowering rates, the homes are still unaffordable. Current homeowners who enjoy the area's many amenities, such as the Indian Hill golf course, may be reluctant to sell their property, especially if they have a low fixed-rate mortgage.
So what does this mean for landlords? If landlords want to purchase a property, they will encounter the same issues as regular home buyers — a lack of inventory. However, landlords with existing properties should see average rental rates remain above average. Many investors are interested in entering Cincinnati’s rental market. The city has ranked on many lists, including Most Promising + Best Places to Invest in Real Estate in the US and the #1 Best Place to Live in Ohio. Rental rates have increased over the last year, nearing $1900 monthly.
Indian Hill population is increasing
Population numbers can positively or negatively impact the real estate market. When the population increases, there is more demand for housing, and prices tend to rise in these conditions. When the population declines, areas may see a dip in demand and lower home prices.
The population in Indian Hill dipped just slightly between April 2021 and July 2021, from 6,072 to 6,037. However, Cincinnati and surrounding areas as a whole increased in population by 353 households for a total of 6,167.
Hamilton County Housing Market Trends in 2023
Hamilton County makes up the greater Cincinnati area, including Indian Hill. Hamilton County is still experiencing a seller's market. Homes in the area are selling for more than they did a year ago, up 7.4%, with an average selling price of $234,923 as of March 2023.
Did COVID-19 affect the Indian Hill real estate market?
As COVID-19 became a reality for the country in 2020, it quickly became evident that the real estate business would be affected. The market saw destabilization from March 2020 through April 2020. Nationwide home sales dropped by 18%.
As time progressed, the pandemic did provide people with opportunities to relocate from populous urban city centers to less populated areas where they could still conduct work and participate in remote learning. This demand for homes drove up property prices and resulted in bidding wars, thanks to historic low-interest rates.
Today, the effects of the pandemic are still evident, as the market is experiencing low housing inventory. While interest rates have since increased from 2020, they are beginning a downward trajectory as of April 2023. The same can be said for builder material costs, with supply chain issues created by the pandemic leading to higher-than-usual prices.
Indian Hill 2023 foreclosure statistics
If a borrower stops making payments to their lender, the lender can begin a legal process called foreclosure. In this process, the lender takes over the ownership of the property and sells it. With interest rates slowly lowering and exponential job growth, we don’t foresee any major foreclosure numbers in Indian Hill.
Should you invest in the Indian Hill Real Estate Market?
While interest rates are higher than they were in 2020, we are starting to see a decline. At the same time, housing prices are still relatively high, as supply is low. Despite this, it’s a great time to enter the Cincinnati and Indian Hill real estate market. Many buyers are eager to purchase; several are willing to refinance their homes when interest rates drop significantly.
If you’re interested in purchasing a home or investment property, you should make sure that you’re financially equipped to do so. If you plan to finance your home, it’s imperative that you have money set aside for closing costs and other associated fees, your credit score is in good shape, and you have sat down and created a budget.
Are you ready to take the plunge into the Indian Hill real estate market? Hoping to start looking at Indian Hill homes for sale? If so, contact local realtor Julia Wesselkamper, who has the experience, dedication, and market knowledge to ensure a successful real estate transaction in today's market.
Recommended reading: Selling A Home in Indian Hill
Recommended reading: Selling A Home in Indian Hill
