Spoiler alert: Cleveland is a seller’s market at the moment. As an agent that specializes in Cleveland luxury homes, however, I can tell you that property markets go through cycles.
Eventually, the tides will turn and it’ll be your turn to get a sweet deal. But how do you know when it’s time to buy? Keep an eye out for these signs:
Demand goes down, supply goes up
People want to buy homes and they want to buy them now. This trend is largely influenced by the pandemic, which has pushed remote work into the mainstream. Now that people are free to work wherever they wish to, they’re trading in cramped apartments in expensive cities for single-family homes in more affordable locales. Aside from houses being snapped up in a heartbeat, new constructions are also hampered by supply constraints, leading to fewer available homes and higher asking prices.
Houses get fewer offers
If you’ve tried to buy a home recently, you know that competition is fierce — so fierce that a single property draws dozens of offers. When the property market cools down, however, that will no longer be the case. As sellers entertain ever fewer buyers, they might consider lowering their asking price or agreeing to concessions just to get their property off the market. Negotiating power shifts back into your hands and you can get a great deal — but only if you’re patient.
Listing times grow longer
You know a property market is hot when homes are sold almost as soon as they’re listed. In some areas, a property could be gone in just a few days — though based on its condition and location, it could take a few weeks. Nevertheless, demand and days on market are inversely correlated. Today, most homes in the Chagrin Valley area close in less than 45 days. The moment housing demand cools, however, you can expect homes in Chagrin Valley to stay on the market for longer than 45 days. Therefore, homeowners will begin considering selling sooner rather than later as the longer their house stays on the market, the lower the price it will fetch.
Listing prices remain robust despite slight drop in sales
As per data from Ohio REALTORS, there was a slight dip in home sales in October 2021 compared to the same period in 2020, with 1.4% fewer homes being sold. However, listing prices have bucked the trend, with the average home price rising by 8.2% to $240,509 in October 2021 in spite of slightly lower sales.
Of course, you likely won’t know the prevailing trends in a given market. If you have a trusted real estate agent, however, they can prepare a report on property values in your chosen Cleveland neighborhood. This insight will let you know whether you should wait or start house-hunting.
All the above trends point to one outcome: more affordable home prices for you. Even before the pendulum swings, you can start looking for a great real estate agent now.
I keep abreast of all developments in the market so I can help buyers make the right decision. Get in touch with me to know all about Cleveland, Ohio homes for sale. Just call 440.823.2448 or send an email to michellemcquade(at)howardhanna(dotted)com. You can also visit my buyer’s portal for a comprehensive guide to purchasing a home.