The short answer to the question "Will the cost of Cincinnati patio homes increase in 2019?" is most probably "Yes".
Whether directly, or indirectly, the likelihood that a patio home will cost more next year is better than 50/50 in the affirmative.
One builder this weekend was mentioning Hurricanes Floyd and Michael. Natural disasters that wreck havoc on the coasts can impact us well inland. Lots of houses were leveled and will need replaced. That potentially means higher demand for lumber, bricks, drywall, etc. And with the laws of supply and demand, unless there are surpluses of raw material, the suppliers can increase prices. And that gives the builders two choices:
1) Eat the cost difference out of their profit margins (fat chance of that happening for long!)
2) Pass along the increased cost to the patio home buyers via increased base prices, increased option prices or via a surcharge of some sort.
So if those storms alone don't boost prices a bit, there are other factors to consider.
Again, supply and demand at work.
There are a limited number of patio home communities with new construction, and no shortage of potential buyers. Buyers have caught on to the appeal of these homes and being able to age in place, travel without worrying about their homes while they're gone, etc. The builders know this, so the shift has been from lesser priced patio homes to more upscale. While there are some communities that support patio homes priced less than $300,000 new, the reality is MOST new construction patio homes easily exceed $300,000. You want a Mason Ohio patio home? Expect to pay $400,000 or even over $500,000. The same applies to Blue Ash and other high demand locations in Cincinnati.
And one last factor to consider? Unless you're paying cash, interest rates for loans have been creeping up. While that might not change the sticker price of a home, it does lessen your actual buying power.
Now if you know you're going to be in the market for a patio home soon, you might want to consider moving up your purchase to get under contract before the end of 2018. If builders are going to roll out increased prices, they probably won't do so until after year end.
While my crystal ball is full of mud and I can't say any of these things will happen for sure, historically increasing prices have been the trend over the last few years and we have no reason to expect 2019 to break that trend.
Interested in knowing more about your patio home options, whether resale or new construction? The answers are easy to get, just call Bill at 513-520-5305 for a chat. Like what you hear, we can meet in person and get even more detailed about determining the best path to take care of your future home needs!
We look forward to hearing from you!
Serving Greater Cincinnati home buyers and sellers,
Bill of Liz and Bill aka BLiz
Serving Warren County Ohio & Adjacent Areas
The Liz Spear Team of RE/MAX Elite
Elizabeth Spear, ABR, CRS, Ohio License SAL.2002007747
William (Bill) Spear, CRS, Ohio License SAL.2004011109 Kentucky 77938
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