January 2025 – Greater Cleveland Market Update!

2024 Real Estate Insights and Projections for 2025

As we enter 2025, it is time to review the real estate market performance of 2024 and share some projections for the upcoming year. There was a surprising jump in the median sale price in 2024, and market time remained under 30 days. Let us dive into the details.

Market Trends: Listings and Sales

Looking at the data from December 2024:

• Residential Listings: There were 2,200 residential listings in Northeast Ohio, a decline from 2,398 in November 2024. Compared to December 2023, which had 2,001 listings, inventory is slightly higher but still reflects the ongoing inventory shortage. Five years ago, in December 2020, there were 2,172 listings, down from the 4,000-6,000 listings typical before the inventory crunch.
• Number of Sales: December 2024 saw 1,062 sales, which is relatively flat compared to November 2024 (1,175 sales). For context, December 2023 had 1,050 sales. Five years ago, during the inventory surge in December 2020, there were 1,628 sales. While activity is lower, this slower pace is typical for December. However, if mortgage rates decrease, we might see increased activity.

Median Sale Price and Market Time

• Median Sale Price: In December 2024, the median sale price jumped to $225,000 from $226,000 in November 2024. This is a significant increase from December 2023, when the median sale price was $187,000. Comparing this to five years ago, December 2020’s median sale price was $165,000. Over the past five years, property values have seen substantial appreciation, creating equity for homeowners. This strong equity position reduces the likelihood of a foreclosure crisis.
• Median Market Time: December 2024’s median market time was 27 days, slightly slower than the past couple of years but still much faster than historical norms. For instance:
  • November 2024: 22 days
  • December 2023: 26 days
  • December 2020: 29 days

Five to six years ago, it was not uncommon for homes to remain on the market for 40 to 60 days in December. The current pace reflects a competitive market.

What to Expect in 2025

Unfortunately, I anticipate more of the same in 2025. While some predict a rebound in the number of sales, the current conditions—high mortgage rates and limited inventory—make that unlikely. Without a significant drop in interest rates, buyer activity may remain subdued, and inventory constraints will persist, limiting options for buyers.

What do you think? Will 2025 surprise us? Share your thoughts in the comments below, and let us know your predictions for the real estate market this year. Stay connected with us for more updates and insights.

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