The story of buyers being outbid is a common one as home inventory remains low and prices continue to climb, but relief could be on the way. With more builders ramping up construction, the National Association of Home Builders’ chief economist says these advancing home prices could fall. In the Cincinnati area, new single-family home construction is expected to increase by 16% by the end of the year. New-home construction only continued at a 7.6% increase this year in Cincinnati. Home prices are still expected to rise, but this new construction could slow the pace.
"Our forecast is for prices in the Cincinnati area to continue to grow over the next two years faster than inflation, but not as much as they did in 2020,'' Dietz said. "The growth in single-family home construction will be a factor. Does it solve the supply problem? Nope. But it’s gonna help.''
Homebuyers could use a break from the blistering pace of home price appreciation.
Nationally, the median price of existing homes sold in October was $313,000, up 15.5% annually and the highest median price on record, according to the National Association of Realtors.
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