September 2024 – Cleveland Area Real Estate Market Update – Worst in Five Years!

Cleveland Real Estate Market Update: September 2024 — Worst August in Five Years!

The Cleveland real estate market experienced its slowest August in terms of sales in five years. What does this mean for buyers, sellers, and investors in the area? Let’s break down the latest market data, and offer predictions for the rest of 2024.

Hi, I’m Mike Ferrante with Century 21 HomeStar and the 21 Mike Team, serving Greater Cleveland and all of Northeast Ohio down to Columbus. In this Cleveland real estate market update, I’ll take you through the most important numbers and trends in just a couple of minutes.

Cleveland’s Active Listings on the Rise

As the market has slowed down, the number of active listings is beginning to increase. In August 2024, we saw over 2,300 active residential listings in Cuyahoga County, which includes Greater Cleveland. This is up from the 2,200 listings we had in July. Interestingly, this rise in inventory comes at a time when the market typically sees a decline as we head into the slower winter season.

When we compare this to a year ago, there’s only a slight increase—August 2023 had just over 2,100 active listings. However, the big picture becomes clearer when we go back five years. In August 2019, there were 4,751 listings, meaning we’re still operating with about half the inventory we need for a balanced market.

The Decline in Sales: What’s Happening?

The real story lies in the number of sales. Last month, there were only 1,262 residential sales in Greater Cleveland, marking the lowest August in years. This is a significant drop from the 1,373 sales in July 2024 and even more from August 2023, which saw over 1,400 sales. Compare that to five years ago in August 2019, when we had over 1,700 sales. Clearly, the Cleveland real estate market has slowed considerably, raising the question: did the Federal Reserve wait too long to cut interest rates?

Price Trends and Market Conditions

Next, let’s take a look at pricing and market time. Despite the slowdown in sales, prices have remained strong, and we’re still firmly in a seller’s market. The median sale price in August 2024 dipped slightly to $220,000 from $222,000 in July. However, that’s still a significant increase from a year ago when the median price was just over $211,000. If we look back five years to August 2019, the median price was just under $150,000, showing substantial price growth over time.

Median Days to Sell

One of the best indicators of a seller’s market is how quickly homes are selling, and in Cleveland, they’re moving fast. The median days to sell in August 2024 was 16 days, slightly up from 13 days in July. However, this is in line with last year, when the median was 14 days. To put this in perspective, five years ago, it took a median of 42 days to sell a home in Cleveland. These figures show that despite the slowdown in sales volume, it’s still very much a seller’s market, and prices are staying strong as a result.

What’s Next for Cleveland Real Estate?

So, what’s ahead for Cleveland’s real estate market? My prediction is that we’ll continue to see the usual seasonal price drops through the winter. However, with the Federal Reserve expected to cut interest rates—possibly once, twice, or even three times before the end of the year—there’s hope that this could stimulate buyer activity. While the number of sales may stay relatively low through the winter, lower mortgage rates could help keep the market moving and sustain Cleveland’s real estate growth.

If you’re interested in buying or selling, now is still a good time to make your move. Lower rates could increase demand, and if you’re selling, the low inventory means it’s still a seller’s market.

For personalized advice, visit 21mike.com to schedule an appointment with me or someone on the team. And don’t forget to subscribe to our YouTube channel so you can stay updated on the latest real estate trends.

The 21 Mike Team — your one-stop shop for buying and selling real estate in Cleveland and all of Northeast Ohio.

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