Cleveland, Ohio, a city known for its rich history, culture, and economy, is proving to be an attractive place to live and invest in real estate. With its prime location along Lake Erie, outdoor enthusiasts can enjoy the scenic beauty of the outdoors, while entrepreneurs and businesses thrive in a strong job market and diverse population.
The Cleveland housing market has experienced its fair share of changes and challenges, influenced by both local and national factors. Let's take a closer look at the current trends and future forecast for the Cleveland housing market.
Current Cleveland Housing Market Trends
According to data from Redfin, the Cleveland housing market demonstrates a certain level of competitiveness. With an average of 3 offers per home and a relatively swift selling period of 29 days, buyers need to act decisively. In November 2023, the median home prices in Cleveland experienced a 9.18% decrease compared to the previous year, settling at a median price of $100K. However, homes are selling two days faster than the previous year's average of 31 days, and the number of homes sold in November increased to 367, up from 355 the previous year.
Comparative Analysis
When compared to the national average, Cleveland's median sale price is notably 73% lower. The sale-to-list price ratio stands at 95.2%, reflecting a 0.69 point decrease year-over-year. Additionally, 24.5% of homes were sold above the list price, marking a 5.6 point decrease from the previous year.
It's worth noting that in the recent period from October '23 to December '23, 20% of Cleveland homebuyers expressed interest in moving out of the city, while 80% aimed to remain within the metropolitan area. Nationally, only 0.72% of homebuyers considered moving into Cleveland from outside metros. Among the metros interested in relocating to Cleveland, Wheeling led the pack, followed by Los Angeles and New York.
Buyer's or Seller's Market?
The Cleveland housing market currently leans towards being a seller's market. With an average time on the market of 29 days and homes receiving multiple offers, sellers have the advantage. Additionally, the average homes sell for about 4% below the list price, further indicating the competitive nature of the market. However, it's essential to consider specific factors influencing individual transactions.
Home Prices Trend
The recent data indicates a 9.18% decrease in home prices in Cleveland compared to the previous year. While this decline is notable, it doesn't necessarily indicate a market crash but rather reflects a shift in the local real estate landscape. Various factors contribute to this, including market dynamics and external influences, requiring potential buyers and sellers to stay informed and adaptable.
Predictions on Market Stability
While the recent drop in home prices may raise concerns, it's crucial to avoid predicting a housing market crash based solely on this data. Real estate markets are influenced by a myriad of factors, and fluctuations are not uncommon. Before making any decisions, individuals should assess their specific circumstances, financial readiness, and long-term goals.
Cleveland Housing Market Forecast for 2024
The Cleveland real estate market presents characteristics of both a buyer's and seller's market currently. Based on the current data and the positive 1-year market forecast, there are no indications of an impending housing market crash in Cleveland. Instead, the market appears stable and poised for growth.
According to Zillow, as of December 31, 2023, the average Cleveland-Elyria home value stands at $211,496, marking a 5.9% increase over the past year. Homes in this region also boast a quick turnaround, typically going pending in around 12 days.
Market Forecast and Inventory Overview
Looking ahead, the 1-year Market Forecast (December 31, 2023) indicates a positive trend with a 3.3% increase. This optimism is reflected in the 4,895 homes for sale inventory as of the same date. Additionally, 1,734 new listings have been introduced to the market, indicating a dynamic real estate landscape.
Median Sale Prices and List Ratios
Understanding the median sale prices and list ratios provides insights into market competitiveness. As of November 30, 2023, the median sale price is $185,133, while the median list price as of December 31, 2023, is $204,967. This data is complemented by a median sale to list ratio of 1.000 as of November 30, 2023, indicating a balanced market.
Market Dynamics: Over and Under List Price
An intriguing aspect of the Cleveland housing market is the percentage of sales over and under the list price. As of November 30, 2023, 42.2% of sales were over the list price, showcasing the competitiveness of certain properties. Conversely, 43.5% of sales were under the list price, providing opportunities for strategic buyers.
Cleveland Real Estate Investment Overview
The Cleveland real estate market is a promising investment opportunity for those looking to buy property. From a thriving job market to various redevelopment projects, the city offers several incentives for real estate investors.
Cleveland's stable population of approximately 400,000 residents, along with its ability to retain young people, provides a solid foundation for real estate growth. Furthermore, the city has invested in healthcare and bio-science business accelerators, expecting to see advancements in healthcare and an increase in high-paying research jobs. Redevelopment projects, such as the Downtown Brownfield Re-Development and the redeveloped Lakeshore district, offer opportunities for both residential and commercial real estate investments.
Other notable areas for real estate investment in Cleveland include University Circle and the Western Rim. The ongoing redevelopment of the waterfront and the transformation of old buildings into mixed-use spaces contribute to the city's overall growth.
It's important to note that the Cleveland real estate market is not without its challenges and risks. Investors should conduct thorough research, consider local trends, and seek professional advice to make informed decisions.
To summarize, the Cleveland housing market exhibits favorable conditions for both buyers and sellers. With a positive market forecast and ongoing redevelopment projects, the city presents attractive opportunities for real estate investors. However, thorough due diligence and market analysis are essential to navigate the market successfully.
References:
- Market Data, Trends & Statistics - Zillow
- Redfin - Cleveland Housing Market
- NeighborhoodScout - Cleveland Real Estate
- Freddie Mac - House Price Index
- Realtor.com - Cleveland, OH Real Estate
- Movoto - Cleveland Real Estate Market Trends
- Atlantis Global - Lerner College
- Calthorpe Analytics - Brownfields/urban redevelopment
- FreshWater Cleveland - Opportunity Corridor, University Circle
- Cleveland Planning Commission - Waterfront
- News-Herald - Cleveland's Lakefront Parks
- Crain's Cleveland Business - Western Rim
- The Global Center - Biomedical hubs and hospitals