What Happen in Real Estate in 2025 in Cincinnati and All of the US

Nationally, we saw the highest levels of inventory since pre-2020. Appreciation rates cooled across the country with some states hit by price drops while most still saw modest growth. 

 

The biggest issue across the country was and continues to be affordability.  Many current homeowners feel locked into their homes by sub 4%, even sub 3% interest rates. While buyers' purchasing power was limited by 6-7% interest rates.  It was a market made of buyers with reduced buying power and sellers who didn't want to sell because they would have to spend so much more to buy the next home.

 

The good news is that the number of homes sold picked at speed at the end of the year due to interest rates steadily dropping over the course of the year, ending at 5.99, finally back under the magical 6% mark experts have predicted will bring more buyers to the market, including those who have homes to sell first. 

 

 

 

Real Estate in 2025 in Cincy

 

Buyers are entering 2026 with more purchasing power, due to lower interest rates, than they had for most of 2025.  A loan of $500K costs $394 less per month than it did at the beginning of 2025.  This will mean more buyers entering the market AND more sellers listing their homes as they finally feel ready for their next move after waiting for the last few years. Inventory is expected to be about 10% higher than last year with more of the homeowners who have been waiting to sell finally taking the leap because life events make it hard to keeping holding out and lower interest rates reducing the pain of buying again. BUT don't expect a buyer rush like 2021 and definitely don't expect a rush of listings to bring home values down.  Over ⅔ of homeowners have paid off at least 50% of their mortgage, which means the odds of a market crash caused by distressed sales is still extremely low. 

 

Interest rates are also expected to remain relatively steady. According to predictions from Fannie Mae, MBA, and Wells Fargo, interest rates will hover between 5.9 and 6.2.

 

Realtor.com put it best “2026 will be steadier [than 2025] but not off to the races” 

“We anticipate affordability will improve modestly, on average, in 2026. This results from our expectations of slightly lower interest rates, only modest increases in home prices and a more balanced market than in recent years.”- Jake Krimmel Senior Economist, Realtor.com

 

A steadier market should be seen as a good thing for both buyers and sellers BUT it also means that to win in 2026 you need to be intentional, whichever side of the deal you are on. 

 

As a buyer, you will want to be ready to jump during the times when interest rates drop slightly.  You want to be able to lock in a rate below 6% when you can.  Talk to a lender early  so all of your paperwork is in order. There will be more listings to pick from too.

 

This will be a market that is great as a seller IF you are strategic about how you list.   Well maintained homes, that photograph well, and are priced to sell will be able to garner multiple offers.  But if you miss on any of those points you'll leave money on the table because buyers will have a little bit more power than that did a few years ago.  With higher levels of inventory and still higher than wanted interest rates buyers will feel that they can be picky and move onto the next home.