The National Association of Realtors (NAR) reported that contract signings for existing homes fell 2.2% in July versus a year earlier, indicating the sluggish national housing market remains unchanged.
Cincinnati-based Edge Home Finance mortgage broker Jessica Eddy attributes the area's relative to affordability, which remains less stretched than in many other major metros.
"The market stays strong here in the tri-state area, and that's really due to the overall economy," Eddy told Mortgage Professional America. "The cost of living here compared to other parts of the country is much more affordable, and that's a big draw. In the past 18 months, more buyers have moved in from higher-cost areas. Lower property taxes and higher purchasing power are pulling them in."
Eddy noted that over the past year and a half, there's been a clear rise in buyers relocating from higher-cost regions, partly because property taxes are lower and they get more purchasing power than they'd have elsewhere.
A few minutes a day is enough to stay genuinely informed about your money. Join Market Briefs free and start tomorrow.
In several of Cincinnati's most desirable neighborhoods - Mason, Liberty Township, Montgomery, Hyde Park in Ohio, and Fort Thomas, Kentucky - the absence of a buyer's market is striking.
"Fort Thomas, Kentucky - there's a waiting list a mile long just to get into their swim club. A home there is selling pretty quickly because of the desirable area and the name it has for schools," Eddy said.
"In those areas, we're not really seeing any price reductions. Even in quieter micro-markets, homes that are correctly priced are still moving fast - and where sellers are making adjustments, concessions are proving more effective than price cuts. Plenty of current contracts include a seller concession of some kind."
"Before they offer a price reduction, let's see about seller concessions," she said. "Sellers are working more with buyers in order to get the deal done."
The local data still fits within a broader national slowdown, but it also shows how affordability can insulate a market. In the Cincinnati area, the combination of lower property taxes, strong school reputations, and a steady inflow of out-of-state buyers has kept demand from cooling as much as it has elsewhere.
The Cincinnati market is not immune to the broader challenges facing the national market, such as fluctuating interest rates and uncertainty about how the Iran conflict might affect the economy. Bond yields, however, climbed again by afternoon, erasing the earlier decline that had followed the Treasury Department's debt buyback announcement. The resulting unpredictability, along with a steady stream of conflicting Iran-related headlines, leaves brokers and buyers without confidence in a stable rate path.
"So much of this is played out on social media and the information gets out there so much quicker," Eddy said. "Whatever one leader said versus another directly affects the market. It's no longer waiting a few days - it has an immediate effect."
The psychological barrier of a 7% rate also persists, as the cost of borrowing has climbed sharply since the Iran conflict began.
The NAR's data also revealed that while national contract signings have declined, the housing market is not collapsing. Inventory remains tight in many areas, and sellers are increasingly turning to concessions such as rate buydowns or closing-cost assistance to attract buyers. These strategies are especially common in regions where home prices are still rising, allowing local markets to outperform the national trend.
Rates, prices and policy all end up in your budget eventually. Get the free Market Briefs daily newsletter and see it coming.
