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Cleveland Ohio Area Real Estate

Your Cleveland and Northeast Ohio Realtor

By Dominic Picione | Agent in North Royalton, OH
  • Cleveland, Northeast OH Area Real Estate Market July 2014

    Posted Under: General Area in Cleveland, Home Buying in Cleveland, Home Selling in Cleveland  |  August 25, 2014 3:51 PM  |  55 views  |  No comments
    According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region increased from June to July. Lower home inventory, higher rental prices and higher buyer demand due to low (but climbing) interest rates, have been driving this increase in activity and increase in sales prices over the past year or so. Sales volume is increasing, and sales prices have shown a slowing increase. A higher inventory in homes for sale would help boost sales activity.

    Among the 15 counties in Northeast Ohio, we saw a miniscule 0.11% increase for single family homes and a 3.6% increase for condominiums.  Single family home sales are up 1% from July of last year, while condos sales prices are up 3.9%.  Bear in mind that condo sales are a very small portion of the market.

    Ohio's sales volume showed an increase of 1.2% from June to July, but down 1.2% from last year. Ohio's sales prices rose by 3.7%, compared to last July.  National figures have shown a 2.4% increase in sales volume from last month, but down 4.3% from last year.  Meanwhile, national prices have increased 4.9% from last year.  Ohio and Northeast Ohio's price increases have slowed or stabilized recently, but the increases are what would be typically expected for the region when compared with the nation.

    Good News: Nationwide, there has been a decline in sales of foreclosures and other distressed properties. Bank owned and distressed properties accounted for only 9% of all sales in July - the lowest level since 2008.

    The key point here is that the market is starting to stabilize and shifting to a balanced/seller's market.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have decreased slightly, hovering around 4.2%.  A recent report indicates that economists are projecting rates to rise to 5-5.5% in 2015.

    This is a great time for buyers who also have a home to sell, because rates are still relatively low on the buying side, but home values have risen in many areas to improve the financial return on the selling side.  If the economy continues to improve, buyers in the current market will be able to realize value gains for the homes they purchase as well.


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  • Cleveland, Northeast OH Area Real Estate Market June 2014

    Posted Under: General Area in Cleveland, Home Buying in Cleveland, Home Selling in Cleveland  |  July 25, 2014 5:40 AM  |  106 views  |  No comments
    According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region increased from May to June. Lower home inventory, higher rental prices and higher buyer demand due to low (but climbing) interest rates, have been driving this increase in activity and increase in sales prices over the past year or so. Sales volume is increasing, and sales prices have shown a slowing increase. A higher inventory in homes for sale would help boost sales activity.

    Sales from May to June show an increase, however, sales from June 2013 to June 2014 show a decline.  Among the 15 counties in Northeast Ohio, we saw a healthy 11.1% increase for single family homes and a 2.5% increase in sales volume from last month.  Single family home sales are up 1.3% from June of last year. Halfway through the year, local home sales are lagging last year's levels by 2.5%, but average sale prices are up 1.3% from June 2013 to June 2014. 

    Ohio's sales volume showed an increase of 7.5% from May to June. Ohio's sales prices were relatively flat, with a 1.2% improvement from last June with an annual increase total of 1.2%.  National figures have shown a 2.3% decrease in sales volume and 2.6% price gain.  Ohio and Northeast Ohio's price increases have slowed or stabilized recently, but the increases are what would be typically expected for the region when compared with the nation.

    "Inventories are at their highest level in over a year, and price gains have slowed to much more welcoming levels in many parts of the country," Lawrence Yun, chief economist for the national Realtors, said in a written statement. "This bodes well for rising home sales in the upcoming months, as consumers are provided with more choices." He added, supply concerns won't dissipate until homebuilding rebounds.

    The key point here is that the market is starting to stabilize and shifting to a balanced/seller's market.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have decreased slightly, hovering around 4.2%.  A recent report indicates that economists are projecting rates to rise to 5-5.5% in 2015.

    This is a great time for buyers who also have a home to sell, because rates are still relatively low on the buying side, but home values have risen in many areas to improve the financial return on the selling side.  If the economy continues to improve, buyers in the current market will be able to realize value gains for the homes they purchase as well.


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  • Cleveland, Northeast OH Area Real Estate Market May 2014

    Posted Under: General Area in Cleveland, Home Buying in Cleveland, Home Selling in Cleveland  |  July 3, 2014 5:50 AM  |  183 views  |  No comments
    According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region increased from April to May. Lower home inventory, higher rental prices and higher buyer demand due to low (but climbing) interest rates, have been driving this increase in activity and increase in sales prices over the past year or so. Sales volume is increasing, and sales prices have shown a slowing increase. A higher inventory in homes for sale would help boost sales activity.

    Sales from April to May show an increase, however, sales from May 2013 to May 2014 show a decline.  Among the 15 counties in Northeast Ohio, we saw a healthy 16.3% increase for single family homes and a 33.1% increase in sales volume from April.  Single family home sales are down 6.3% from May of last year. Over the past 5 months of 2014 compared to 2013, we have witnessed a 3.3% decline in sales volume, but a 1.8% increase in prices for single family homes and 1.4% for condos.  Local home prices dipped slightly by 1.1% from May 2013 to May 2014. 

    Ohio's sales volume showed an increase of 6.2% from April to May. Ohio's sales prices were relatively flat, with a 0.8% decline from last May with an annual increase total of 2.9%.  National figures have shown a 4.9% increase in sales volume and 5.1% price gain.  Ohio and Northeast Ohio's price increases have slowed or stabilized recently, but the increases are what would be typically expected for the region when compared with the nation.

    The key point here is that the market is starting to stabilize and shifting to a balanced/seller's market.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have decreased slightly, hovering around 4.2%.  A recent report indicates that economists are projecting rates to rise to 5-5.5% by year-end.

    This is a great time for buyers who also have a home to sell, because rates are still relatively low on the buying side, but home values have risen in many areas to improve the financial return on the selling side.  If the economy continues to improve, buyers in the current market will be able to realize value gains for the homes they purchase as well.


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  • Cleveland, Northeast OH Area Real Estate Market April 2014

    Posted Under: General Area in Cleveland, Home Buying in Cleveland, Home Selling in Cleveland  |  May 30, 2014 5:10 AM  |  294 views  |  No comments
    According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region decreased from March to April. Lower home inventory, higher rental prices and higher buyer demand due to low (but climbing) interest rates, have been driving this increase in activity and increase in sales prices over the past year or so. While sales volume is a bit lower, sales prices have shown an increase.

    Sales from March to April do show an increase, however, sales from April 2013 to April 2014 show a decline.  Among the 15 counties in Northeast Ohio, we saw an 8.8% increase for single family homes and a 31.6% increase in sales volume from last month.  Single family home sales are down 2.6% and condominium sales are down 4.2% from April of last year. Local home prices continue to increase, but at a slower pace than 2013.  We saw a 3.9% increase in annual price gains, up from 2.9% in February.

    Ohio's sales volume showed an increase of 3.8% from March to April. Ohio's sales prices have increased by 7.4% from last April and national figures have shown a 5.2% gain.  Ohio and Northeast Ohio's price increases have slowed or stabilized recently, but the increases are what would be typically expected for the region.

    The key point here is that the market is starting to stabilize and shifting to a seller's market.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have decreased slightly, hovering around 4.2%.  A recent report indicates that economists are projecting rates to rise to 5-5.5% by year-end.

    This is a great time for buyers who also have a home to sell, because rates are still relatively low on the buying side, but home values have risen in many areas to improve the financial return on the selling side.  If the economy continues to improve, buyers in the current market will be able to realize value gains for the homes they purchase as well.


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  • Rising Mortgage Rates Expected - Consumer Impact

    Posted Under: Home Buying in Cleveland, Home Selling in Cleveland, Financing in Cleveland  |  April 29, 2014 12:25 PM  |  468 views  |  No comments
    It is going to happen...interest rates will rise as the economy and real estate markets improve.  Based on what the Federal Reserve tells us, that scenario may be set in motion soon.

    The Fed isn't expected to raise base interest rates when they meet this week, but it's expected that they will send signals of what is to come.  They said that they would consider raising rates when unemployment goes below 6.5% and inflation is hovering around 2.0%, but the Fed will look at many more issues before deciding to raise rates.

    Interest rates have been staying around 4.3%-4.5% for 30 year home purchase financing over the past several months, which is about 1% higher than a year ago.  Rates are expected to climb to between 5.0 and 5.5% by the end of 2014.

    Of course, rising interest rates will have an effect on purchasing power.  A home buyer will be able to finance a higher sales price now versus what they can qualify for as rates increase.  At 4.5% for 30 years, the principle and interest payment is $1,013.37 on a $200,000 mortgage loan.

    See below for principle and interest calculations at rising interest rates
    :

    $200,000 at 4.50% = $1,013.37
    $200,000 at 4.75% = $1,043.29
    $200,000 at 5.00% = $1,073.64
    $200,000 at 5.25% = $1,104.41
    $200,000 at 5.50% = $1,135.48

                CLICK HERE to perform mortgage calculations for your price range

    As you can see, going from 4.5% to 5.5% causes an 11% increase in monthly payment.  Assuming a $200,000 mortgage is a buyer's maximum approval at 4.5%, a 5.5% interest rate will reduce a buyer's spending power to $178,475.  Couple that with rising home prices (6.1% increase overall last year) in many locations, one can see the significance.  This will also affect home sellers and how much they can expect to get for their home.  If rising rates decrease buyer demand, it may slow down how much home values will continue to appreciate.

    Rate increases are expected to be gradual throughout the year, but they are expected to rise.  Rates are still at or near historical lows we had not experienced priot to the past several years.  Before that, 6-7% rates were considered great.  The point here is to provide some persective on how rates will affect home purchases in the future.
  • Cleveland, Northeast OH Area Real Estate Market March 2014

    Posted Under: General Area in Cleveland, Home Buying in Cleveland, Home Selling in Cleveland  |  April 24, 2014 5:58 AM  |  478 views  |  No comments
    According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region decreased from February to March. Lower home inventory, higher rental prices and higher buyer demand due to low (but climbing) interest rates, have been driving this increase in activity and increase in sales prices over the past year or so. Sales and price gains actually dipped a bit recently, however, which is being attributed to the harsh winter weather experienced in the area.

    Sales from February to March do show an increase, however, sales from March 2013 to March 2014 show a decline.  Among the 15 counties in Northeast Ohio, single family home sales are down 5.9% and condominium sales are down 15.5%. Year-to-date, local sales of new and existing homes were lagging by nearly 1.7%.  Single family home prices were up 1.8%, compared to last year. Condos were up 7.7% higher than March 2013.

    Ohio's sales volume showed a decline by 6.6% from March 2013, while the US market is experienced a sales volume decrease of 7.5%.  Ohio's sales prices have increased by 3.3% from last March and national figures have shown a 7.9% gain.  Ohio and Northeast Ohio's price increases have slowed or stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. 

    The key point here is that the market is starting to stabilize and shifting to a seller's market.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have increased slightly, hovering around 4.5%. 

    This is a great time for buyers who also have a home to sell, because rates are still relatively low on the buying side, but home values have risen in many areas to improve the financial return on the selling side.  If the economy continues to improve, buyers in the current market will be able to realize value gains for the homes they purchase as well.


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  • Cleveland, Northeast OH Area Real Estate Market February 2014

    Posted Under: General Area in Cleveland, Home Buying in Cleveland, Home Selling in Cleveland  |  April 1, 2014 9:44 AM  |  626 views  |  No comments
    According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region increased from January to February. Lower home inventory, higher rental prices and higher buyer demand due to low (but climbing) interest rates, have been driving this increase in activity and increase in sales prices over the past year or so. Prices actually dipped a bit recently, however.

    Low inventories continue to prevent some would-be buyers from making deals. Fewer homeowners put their properties on the market in February, when compared with listing-service figures from January. Overall, new listings are down 8.3% this year.

    Sales comparing February 2013 to February 2014 still show increasing sales figures.  Among the 15 counties in Northeast Ohio, single family home sales are up 3.6% but a slight decline in condominium sales. and is showing a 5.7% price decrease from last February,

    Ohio's sales volume showed a decline by 4.3% from February 2013, while the US market is experienced a sales volume decrease of 7.1%.  Ohio and Northeast Ohio's price increases have slowed or stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation.  There is still a concern that home prices are rising faster than income growth.

    The key point here is that the market is starting to stabilize and shifting to a seller's market.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have decreased slightly, hovering around 4.5%. 

    This is a great time for buyers who also have a home to sell, because rates are still relatively low on the buying side, but home values have risen in many areas to improve the financial return on the selling side.  If the economy continues to improve, buyers in the current market will be able to realize value gains for the homes they purchase as well.


    Come Join My Facebook Real Estate Fan Page!
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