Spring and summer are the peak house-hunting seasons in Cleveland. As the warm temperature gives way to colder days, however, buyers and sellers are wondering if the property market’s hot streak will cool down.
While we can expect sales to slow down a bit, Michelle McQuade, one of the leading realtors in Cleveland, Ohio, believes that the future remains bright for the city’s property sector.
Why do home sales slow down in the fall?
For starters, this isn’t anything new and shouldn’t cause alarm. As people become preoccupied with the start of the school year, housing demand naturally eases off.
If you’re a buyer, purchasing a home in the off-season offers certain perks, including less competition and lower prices.
There’s a silver lining for sellers, too. Thanks to technologies like virtual tours, buyers can “view” properties remotely even if they can’t come down to Cleveland in person. This can help buoy demand as the fall (and winter) lull sets in.
Home prices remain attractive
Cleveland’s housing cost is an interesting story.
As people were forced to work and study from home, demand for bigger houses in less densely populated metropolises rose. As such, the median list price of homes in the city rose by an impressive 15%.
And yet, the typical home in Cleveland costs only about $115,000 — drastically lower than the national average. Even sought-after areas like Chagrin Falls have attainable home prices at around $343,000, though many properties also command over $500,000.
Even if demand softens in the fall, the excellent value for money that the city offers remains a strong draw.
Buying a home remains the more attractive option
In many parts of America, renting is more affordable than paying a mortgage. That’s not the case in Cleveland. According to data from the Urban Institute, renters in the city earmark around 18% of their income for rent, while homeowners set aside only about 14% for housing costs. As long as home buying remains the better and smarter choice, the real estate market will remain robust.
Unemployment has stabilized
The COVID-19 pandemic caused massive layoffs during its peak. According to the Bureau of Labor Statistics, however, the city’s unemployment rate has been drastically reduced. As per the latest figures, only about 5% of residents are unemployed, which is in line with the national average. As unemployment drops, more and more people will be able to afford a home, keeping property prices and housing demand strong.
More people are moving to Ohio
You may have heard about the exodus of people from big cities, but you might not know that Ohio is one of the biggest beneficiaries of this trend. A report shared by moving company U-Haul says that The Buckeye State welcomed the fourth-most number of new residents in 2020. If this trend continues — and the state’s lower cost of living and high quality of life suggests it will — then out-of-town buyers will continue snapping up properties in major cities like Cleveland and Shaker Heights.
Conclusion
2021 has been a blowout year for the real estate sector and this will likely continue into 2022. As you can see above, Cleveland has several economic and demographic factors on its side that bode well for its future.
Want expert advice on Cleveland, Ohio real estate? Then be sure to get in touch with Michelle McQuade by calling 440.823.2448 or by sending an email to michellemcquade(at)howardhanna(dotted)com. You can also learn more about her qualifications by checking out her profile.