What the Latest FED Rate Cut and the Election Results Mean for

Cleveland Real Estate

The Federal Reserve has cut rates by another quarter point, and the election is finally behind us. But what does all this mean for the real estate market in Northeast Ohio, specifically in Cleveland? Let us dive into the numbers and unpack the trends shaping our local housing market.

Hi, I am Mike Ferrante with Century 21 HomeStar and the 21 Mike Team. We are real estate agents serving Greater Cleveland and all of Ohio. If you have any real estate needs, visit 21Mike.com and click the button at the top to schedule an appointment. Now, let us get into our real estate market update.

Inventory Trends: Active Listings Are Rising

October 2024 Inventory: There were 2,661 active listings, up from 2,432 in September 2024.
Year-Over-Year Comparison: Listings have increased compared to October 2023, which saw 2,376 listings.
Five-Year Perspective: We are still far below October 2019’s 4,626 listings, confirming we remain in a significant inventory shortage.

This is unusual for this time of year, as inventory typically declines during the fall.

Sales Volume: A Slight Decline

While inventory rose, sales have been lagging:

October 2024 Sales: Only 1,139 homes were sold, holding steady from September 2024 (1,144 sales).
Year-Over-Year Decline: Sales dropped compared to October 2023, which saw 1,239 homes sold.
Five-Year Comparison: Back in October 2019, sales were higher at 1,468 homes.

This decline in sales volume reflects a market that is stalling out despite rate cuts.

Prices and Market Time

Median Sale Price: October 2024’s median price dipped slightly to $205,000, down from $215,000 in September 2024. However, year-over-year, prices remain strong, up from $192,000 in October 2023. Over five years, the median sale price has skyrocketed from $148,000 in October 2019.
Market Time: Homes are selling quickly, with a median of 20 days in October 2024. While this is slower than October 2023’s 14 days, it is a vast improvement from October 2019’s 50 days to sell a home.

What Does This All Mean?

1. It Is Still a Seller’s Market

Low inventory and quick market times mean sellers remain in control. Prices may dip slightly due to seasonal trends, but they are holding strong overall.

2. Spring Bounce-Back Is Likely

Historically, the year after an election—regardless of who wins—sees a rebound in the real estate market. This means we can expect a strong spring market with rising prices, shorter days on the market, and hopefully, continued inventory growth.

3. FED Rate Cuts Could Continue

The slight dip in sales volume may push the Federal Reserve to consider further rate cuts, which could help stimulate buying activity.

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