Cleveland Real Estate Market TrendsMichelle McQuade | September 7, 2017
With a notable downtown renaissance, a reemerging job market, and comparably affordable home prices, Cleveland’s housing market continues to grow, thanks to attention from younger property buyers. It remains a seller’s market, however, given the low inventory of existing homes.
Let’s take a closer look at the prominent real estate trends in Cleveland and its surrounding suburban communities:
- 1. Millennial influx and “brain gain”
Research firm Brookings has reported that the Greater Cleveland area grew by 32% from 1990 to 2000, the largest population increase among all cities in the Midwest. More than a decade later, the region is sustaining its momentum, backed by the arrival of millennial homebuyers.
A thriving, increasingly diverse, and startup-friendly local economy is a key draw for these new residents. The same can be said about the rejuvenated downtown, which has seen an estimated $19 billion in development investments since the start of the decade.
The influx of young, college-educated residents is resulting in a “brain gain,” which promises more prolific times for the area. This is coming at a great time, especially with the projected growth of local business and employment opportunities within the next decade.
- 2. Home prices continue on an upward trend
While there is serious interest from a growing number of buyers, the limited number of available houses is skewing the market in favor of sellers. The shortage of existing homes is pushing buyers to consider new constructions.
According to a Cleveland.com market analysis, median home prices have risen to $39,400 as of the first half of 2017. This continues a steady trend observed through the previous two years, where median prices were marked at $32,500 in the first half of 2015 and $33,500 for the same period the following year.
The study clarifies that the city’s median price is pulled down by a high number of homes that sold for notably low prices. However, more than 400 single-family homes or condos sold at or above $105,000, the median home price recorded for the entire Cuyahoga County. 112 of these sold for $200,000 or more.
- 3. The annual pace of price increases is slowing
Despite the steady price climb, the pace of these gains has been slowing, according to S&P CoreLogic Case-Shiller Home Price Indices. In a review of single-family home prices as of May 2017, the think tank reported that homes in the in the Cleveland-Elyria-Mentor area cost 3.6% more compared to the previous year.
However, Cleveland is one of the less aggressive markets in terms of price increases. Seattle, Portland, and San Francisco top major housing markets in rising prices.
- 4. Greater Cleveland area home prices have not returned to pre-recession levels
A separate study from the Federal Housing Finance Agency, meanwhile, reports that as of May 2017, home prices in the Cleveland metro area are still 7.2% below peak levels prior to the 2007-2009 financial crisis. The study cited data based on mortgages served by the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation.
Learn more about Cleveland through our regularly updated blog section, where we feature the latest developments in the real estate market and top lifestyle tips for the area.