2019 Real Estate Trends in Cleveland, OHMichelle McQuade | January 14, 2019
After weathering the housing crisis, Cleveland is finally seeing a turnaround in its real estate market.
2019’s real estate darling
Despite lagging behind in recent years, Cleveland is projected to become one of 2019’s real estate darlings, along with other markets like Houston, Philadelphia, Pittsburgh, and Chicago.
Jobs are expected to return to Ohio, as experts are predicting the availability of higher paying jobs in 2019 and anticipating the results of US President Donald Trump’s America First policy.
In late 2018, Cleveland was among several housing markets that have seen marked improvements in home value appreciation. The rate of acceleration as of August 2018 was 6.8%, an increase from 6.2% from the previous year.
Little Big Homes’ House Price Trend predicts an upward trend for its 12-month forecast for Cleveland up until the first quarter of 2019. The real estate website believes that home prices will be higher in Q1 2019 than Q1 2018.
The city has made slow but steady recovery from the housing crisis over the last few years. Zillow found that 31.2% of homes are now more valuable than they were during pre-recession peaks.
Millennial buyer demand
There will be higher demand for real estate as millennials enter their home buying years. This demographic makes up a significant portion of the market, and as millennials find themselves in long-lasting high-paying careers, many will make the decision to purchase a home in 2019. As such they will continue to dominate housing markets across the nation.
With more millennials entering the market, and with baby boomers looking to downsize, home buying is expected to become more competitive in 2019. These two demographics with wildly different viewpoints will be competing over the same homes.
Millennials will have to contend with the larger wallets of baby boomers, while boomer buyers will square up against millennials who have the know how and willingness to invest in fixer-uppers.
Sellers and agents will have to cater to both generations when marketing their homes. These buyers will have been more exposed to real estate shows like HGTV, making it easier for them to spot red flags when house hunting.
Agents will also have to bolster their online reputations – the majority of millennial buyers read internet reviews before making a decision.
A recent study has also found that millennials would rather buy from an influencer, with as many as 80% saying that they would hire one instead of a qualified real estate agent. This means that sellers and agents will have to beef up their social media presence in order to capture this market.
Selling real estate in Cleveland, Ohio? Call me, Michelle McQuade, at 440.823.2448 or send an email to MichelleMcQuade(at)HowardHanna(dotted)com. As a top Cleveland Realtor, I can help you find qualified buyers for your home.
Commercial real estate
Commercial real estate continues to be a bright spot in Cleveland – the market is growing, and there has been high demand for investment properties from large and small investors.
A rapidly growing economy, a robust lending climate, and lower interest rates have driven the demand for commercial real estate investments. Although interest rates are expected to increase slightly in 2019, as they have throughout 2018, local experts believe that investor demand will remain strong.
Rental rates for companies that lease space will likely increase, and the shift of big suburban companies to the downtown area will continue as they try to attract a millennial workforce that want to experience the ultimate live, work, play environment.
Take advantage of Cleveland real estate’s great prospects for 2019! Call me, Michelle McQuade, at 440.823.2448 or send an email to MichelleMcQuade(at)HowardHanna(dotted)com.