August 2024 - Cleveland Area Market Update!

Cleveland Real Estate Market: How Does It Compare to the National Market?

The national news has been buzzing with reports that real estate markets across the country are slowing down. But how does the Cleveland real estate market compare to the rest of the U.S.? Is our local market following the national trend, or is Cleveland standing strong? Let’s dive into the numbers and find out.

Cleveland Real Estate Market Overview

Hi everyone, I’m Mike Ferrante with Century 21 HomeStar and the 21 Mike Team. We’re your trusted real estate agents serving Greater Cleveland, all of Northeast Ohio, and even down to Columbus. If you’re interested in learning more about the Cleveland real estate market or have any real estate needs, visit us at 21mike.com. And don’t forget to follow us on all our social media channels for the latest updates!

Now, let’s get into the latest real estate market update.

Is Cleveland Shifting to a Buyer’s Market?

While some areas in the U.S. have shifted to more of a buyer’s market, Cleveland is still holding strong as a seller’s market. However, there’s no denying that things have slowed down. To understand why, let’s take a look at the latest numbers.

Inventory and Sales: A Closer Look

One of the key indicators we monitor is the number of residential listings. In July 2024, Cleveland had just over 2,300 listings. This was an increase from the previous month, June 2024, when we had about 2,100 listings. Compared to July 2023, where we also had around 2,100 listings, inventory has remained relatively flat year-over-year. However, when we look back five years, the difference is stark. In July 2019, there were over 4,700 listings in the Cleveland market. This dramatic decrease in inventory—down by almost half—explains why we’re still in a seller’s market.

The number of sales paints a similar picture. In July 2024, just over 1,300 homes were sold, slightly up from the previous month but still down compared to five years ago, when over 1,600 homes were sold in July 2019. This drop in sales volume, combined with the low inventory, continues to sustain the seller’s market in Cleveland.

Prices and Market Time: What’s Happening?

Let’s examine median days to sell and median prices, two critical factors that everyone is watching closely.

The median days to sell a home in Cleveland has remained incredibly low, staying flat at 13 days in July 2024. This is almost identical to July 2023, when it was 12 days. To put this into perspective, five years ago, in July 2019, it took a median of 43 days to sell a home in Cleveland. This rapid selling time is a clear indicator of a strong seller’s market, where demand continues to outpace supply.

But what about prices? In July 2024, we observed a slight dip in the median price to $220,000, down from $227,000 in June 2024. This decline is part of the normal seasonal cycle, where prices typically rise during the summer months and dip during the winter. However, when we compare this to July 2023, when the median price was $209,000, and even further back to July 2019, when it was $162,000, it’s clear that home values have significantly increased over the past five years.

What Does This Mean for Cleveland Real Estate?

So, what can we expect moving forward in the Cleveland real estate market? Based on the current data, it’s likely that we will continue to see the usual seasonal dip in prices as we move through the winter months. However, there’s also the possibility that the Federal Reserve might cut interest rates, which could lead to lower mortgage rates and potentially increase demand.

If that happens, we could see an uptick in the number of sales, and as we move into the spring, prices are likely to rise again. Overall, Cleveland’s real estate market is expected to continue its steady, cyclical pattern, with the strong fundamentals of a seller’s market remaining intact.

If you’re looking to buy or sell in Northeast Ohio, or if you just want to stay informed about the market, visit 21mike.com to schedule an appointment with me or a member of the team.

The 21 Mike Team is your one-stop shop for buying and selling in Northeast Ohio, and we’re here to help you navigate this dynamic market. Stay tuned for more updates!

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