October Greater Cleveland Market Update!

Greater Cleveland Real Estate Market Update: Did the Fed’s Rate Cut Help?

The Federal Reserve recently dropped its interest rate by half a point, leaving many wondering: Did this move positively impact the Greater Cleveland real estate market? Let’s dive into the latest numbers and trends to find out.

Hi, I’m Mike Ferrante with Century 21 HomeStar and the 21 Mike Team, where we serve the Greater Cleveland area and much of northern Ohio. If you’re interested in buying or selling a home, or just want to stay up to date on the market, make sure to follow us on all your favorite social media platforms. And if you’re watching on YouTube, don’t forget to hit that subscribe button so you don’t miss future market updates. Ready to talk real estate? You can always schedule an appointment with me or someone on the team at 21mike.com.

Now, let’s get into the numbers for the Greater Cleveland market!

Inventory and Sales Trends: Are Listings Increasing?

When we look at the residential listings in Northeast Ohio (measured primarily in Cuyahoga County), the number of active listings in September 2024 rose slightly to 2,515 properties. However, this number is still far below what’s needed for a balanced market. Historically, we start seeing inventory decline as we move into fall and winter, and I expect this trend to continue. For context, five years ago in September 2019, the number of listings was 4,772—almost double what we’re seeing today.

On the sales side, did the Fed’s rate cut help? Unfortunately, not really. September 2024 recorded 1,137 sales, which represents a slight decline from both the previous month and the same time last year. In September 2023, there were 1,203 sales, marking about a 5% drop. Compare that to September 2019, when 1,382 homes were sold, indicating a much healthier market back then.

Despite the Federal Reserve lowering rates, the Cleveland housing market didn’t see the boost in sales that many hoped for. In my opinion, the Fed may have waited too long to make this move, and the effects on the housing market are likely minimal for now.

How Quickly Are Homes Selling?

One positive note in today’s market is how quickly homes are selling. The median days to sell a property in September 2024 remained at 17 days. This is incredibly fast, especially compared to five years ago when the median was 50 days. This speed in home sales shows that it’s still a seller’s market, despite the overall slowdown in sales volume.

Property Prices: What’s Happening With Home Values?

In terms of pricing, the median sale price in Greater Cleveland dipped slightly in September 2024 to $216,000, down from $220,500 the previous month. However, this is still an increase from September 2023, when the median sale price was $200,500.

If we go back five years, prices were significantly lower, with the median home price in September 2019 at $148,000. This highlights how much property values have appreciated over the past several years, reinforcing that the Cleveland market remains strong in terms of long-term growth.

What’s Ahead for the Cleveland Real Estate Market?

As we head into winter, I expect prices to drop slightly, and the days on market to increase as we typically see during the colder months. However, I predict that 2025, particularly following the upcoming election, will be a strong year for real estate regardless of who wins. Historically, election years tend to be positive for the housing market.

In summary, while the Fed’s rate cut hasn’t led to an immediate boost in sales, the Greater Cleveland market remains stable. Home prices are still high compared to previous years, and properties are selling quickly, indicating that sellers still hold a strong position in the market.

If you’re thinking of buying or selling a home, now might be the right time to prepare for what could be a busy year in 2025. Feel free to share your thoughts on the current market in the comments and, as always, head over to 21mike.com to schedule an appointment. The 21 Mike Team is your one-stop shop for all your real estate needs in Cleveland and beyond!

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