13 Takeaways on the Real Estate Industry after 13 days of 2021!
More than likely, 2020 is not going down as your favorite year. It has such a nice ring to it, but didn’t exactly live up to the hype. BUT, it is now behind us and it’s time to look forward. I don’t know about you, but I am hopeful and encouraged. Maybe that’s the new year’s resolution nostalgia that still hasn’t worn off, but nonetheless, I am going with it.
After only 13 days, here are 13 takeaways that are setting the tone for the start of the new year:
Let’s start out with the obvious: This years Spring market is FREEZING! Yes, it might say January on your watch or Google calendar, but the Spring Market is here. Talk to any agent and they’re seeing a flurry in sales, closings and interest.
Seller’s: Inventory is TIGHT! That is incredible news if you’re a Seller as your home should sell FAST if properly positioned, priced and marketed! If you’re thinking about selling, you need to be on the market NOW!!
Buyers: Inventory seems even tighter! There are VERY few homes on the market, in fact, record lows. What does that mean? You need to be prepared by having your pre-approval in hand and a REALLY good advisor on your side.
New Construction costs are rising! Most have heard about lumber costs rising, but other material shortages are driving up costs as well. One of our clients says it best, there’s no better time to build than NOW (Credit: Bernie Kurlemann from Classic Living Homes). Costs will continue to rise so don’t wait until they get higher.
Lots are hard to find! We know this first hand with our sourcing team working overtime to find out clients lots. The good news: we’re still finding them 🙂
Land Values are Rising! Land has been slower to increase in value over the past several years, but we’re finally seeing it. Great news for developers and land sellers, but tougher to swallow for new home buyers as it’s pushing prices up.
New Development is happening! There are all sorts of new communities in 2021! Some of our favorites are Peterloon Meadows (Indian Hill), Three Oaks (Oakley), Factory 52 (Norwood) and Chimney Ridge (Loveland).
This is the last year of the current City of Cincinnati Tax Abatement! At the start of 2022, the tax abatement will be changing so get moving on your new City home! Link here for more information
Median Home Prices are rising! This has been happening for the past several years, but we continue to see this. It may be at a more modest pace, but 3-4% is likely!
Citirama is coming to Newport! We’re excited to see the Home Builders Association jump across the Ohio River to do an incredible show in Newport with incredible view. More news to come so watch our feed!
Mortgage Rates are still at ALL TIME LOWS! This helps to offset the rising values and new construction costs.
Baby Boomers are making moves. Call it what you want, downsizing or right sizing, but we’re seeing a surge in baby boomers making the move.
Lock your doors, there’s another little Hines coming in the Spring 2021. This was just a test to see if you made it all the way to number 13. But, seriously be careful, we’re really not in control any more.
As always, if you have any questions, thoughts, comments, or just want to say hello, don’t hesitate to reach out! We’d love to hear what you’re seeing in the market and what your experience is.
The Cincinnati Tax Abatement is CHANGING! Learn More Here
On September 2nd, City Council passed a motion to change the policy to the current Tax Abatement also known as the Community Reinvestment Areas. The tax abatement allows residents and businesses to have a portion of their property taxes abated based on the improved value of their investment into a specific property. Essentially, if you renovate or build a home in the City of Cincinnati, you have the opportunity to pay less in taxes if you follow certain criteria.
Quick disclosure as we get started, this blog post is not meant to give you a step by step guide how to have your taxes abated nor is it the end of your fact finding on changes. I am a real estate agent that focuses on New Construction in Cincinnati, but not an attorney, consultant or expert on the tax abatement policies. I say this to make sure you understand that expert guidance may still be needed if you are making investments or decisions to which the tax abatement may impact..
Anyways, back to the information…the original goal of the tax abatement and the CRA (Community Reinvestment Areas) is to remain intact. If you read through the City’s tax abatement information, you’ll see that the original goal of the CRA was to: 1) stimulate community revitalization, 2) retain City residents, 3) attract homeowners, and 4) reduce development costs of home-ownership and rental projects. To find out more, click here to review the City’s website on the current tax abatement.
Fast forward to today, City Council under Vice Mayor Smitherman has empowered “The Property Tax Working Group” at the end of 2018 was set up to investigate the effects of the CRA and see how they can improve upon it. These are the results of thousands of hours of review by that group and recommendations from a number of parties.
In regards to the suggested changes, which may soon become a reality, here’s what you need to know.
Tax Abatement Terms and Caps are CHANGING –You can review these by clicking here, but you’ll notice that each of the categories for new construction has gone down. There are also new incentives based on Historic Renovations, Visibility and renovations in general.
Four Families may be moving from the Commercial tax abatement requirements to residential, which is highly favorable for owners of multi-families.
Visibility – This is a term you might not know yet, but soon will. By increasing threshold widths, creating zero step entries, and adding “visitable paths”, you may be able to increase your abated value by $100,000. This can only be done at the planning stage, during design, and could save you around $2500/year. For more information on visibility, click here (https://docplayer.net/42823090-City-of-cincinnati-visitability-standards.html)
Tiered Approach Under Consideration – On the final policy change, you may see something along the lines of a tiered neighborhood approach. We’ve heard that they plan to continue to engage in an extensive study to review this option.
Grandfathering – USGBC and the HBA are talking through the provisions for grandfathering properties to the old Tax Abatement Rules that are in some phase of development. This is still TBD and being discussed, but will most likely be a part of the new ordinance.
TALK TO YOUR CONSULTANT – It’s more important than ever to talk to your consultant, especially Green Building Consulting, who has been at the forefront of these changes.
We know this motion and policy is NOT set in stone, but it’s important to keep an eye on these changes. We’re lucky to call Paul Yankie of Green Building Consulting a friend, so we’re one call away from understanding where these changes stand. And if you’re considering building or renovation, we encourage you to give his firm or any of the other LEED building consultants in town a call.
Disclosure: Since this information is changing on a daily basis, please consult the City of Cincinnati, a LEED Consultant and/or your builder before you act on any of this information. We can not guarantee any of this for accuracy as it’s based on our interpretation of the Property Tax Working Group and Home Builders Association information.
Cincinnati has been voted one of the best places to live in the United States, and while that may be not surprise to us lifelong residents, we want to make sure new visitors and transfers understand just how great our City is! Of course we love our sports teams, unique restaurants, and the wide array of things to do, but our personal favorite is the affordable housing market.
So, please take a quick look at all the reasons we love the Queen City and head on over to our PROPERTY SEARCH to browse our selection of homes currently on the market to purchase. You know you love Cincinnati as much as we do… is it time to set new roots in your favorite neighborhood?
If you’ve been living in the City of Cincinnati, chances are you’ve heard about the tax abatement for new construction and remodeled homes. But, do you really know how it works??
Paul Yankie, President & CEO of Green Building Consulting sat down with us to give us a little crash course on the tax abatement & LEED Construction and why it’s been such a driving force in the Cincinnati residential real estate market.
Paul explains it best in our chat with him, but here are the main takeaways:
The Cincinnati Community Reinvestment Area (CRA) Residential Tax Abatement, as it’s called, offers property owners the ability to minimize tax implications when you build, add-on or invest in your home. This means that any improvements will NOT significantly add to the property tax bill. You would only pay on the amount of “pre-improvement” value, up to $275,000.
LEED Certification: This is the secret topping to the tax abatement. Basically, LEED Building = Green Building = Energy Efficiency.The City of Cincinnati is one of the BEST places to build a LEED certified home because it saves you even more money. The higher the rating, the more money you save. LEED Silver allows for up to $400,000 abated, LEED Gold is up to $562,000 and LEED Platinum is UNLIMITED. Of course, LEED comes with it’s extra building costs, but that’s specific to the home you build and how much money you can spend!
Find a professional (a builder or Build Collective or Green Building Consulting) that understands the tax abatement and construction process. They can help you determine what the best plan of action is for you.
Now that you’re armed with this information, doesn’t building and remodeling in the City sound that much better? Not only can you design a home specifically for you and your family, but you can save money in the process!
See How Much Money You Can Save on A New Home with Our Tax Abatement Calculator!
Tune in to see how we’re working with our buyers and sellers during COVID-19. Mike Hines (Build Collective) joins Tim O’Brien (Zipfel Capital) and Dan Orner (First Title) on the latest procedures when it comes to home buying and selling to keep you safe and informed.
As the top real estate team in Montgomery, Ohio, we are committed to keeping you well informed so you can always make the best decisions for you and your family.
Call Us With Questions
Have more questions? Need to sell or buy a home soon but don’t know where to start during these ever changing times? Please reach out to us! Mike Hines is available to chat or email at anytime…. 513.260.0424 or [email protected]
