Cleveland, Northeast OH Area Real Estate Market July 2012

According to the Northeast Ohio Regional Multiple Listing Service and an article from the Cleveland Plain Dealer, homes sales in the region continue to surpass last year's sales figures. Lower home inventory, along with higher buyer demand due to low interest rates, is driving this increase in activity and increase in sales prices.

While home sales declined slightly from June 2012 to July 2012, sales comparing July 2011 to July 2012 show considerable improvement.  Among the 15 counties in Northeast Ohio, single family home sales are up 18.4% and condo sales are up 26%.  In addition to the increase in sales activity, Northeast Ohio is showing a 9% increase in single family home prices and 2.6% increase for condos. 

The key point here is that the market is starting to correct itself and balance.  Sellers are getting more for their homes than last year, with buyers paying a bit more to purchase a home to take advantage of the low interest rates.  Buyers should note that interest rates have increased over the past couple weeks (and is forecasted to continue in that direction), when deciding when to make a purchase.  The data over the past several months indicates we have seen the bottom of the local real estate market.





Northeast Ohio is currently outpacing the nation sales increase of 10.4%.  Nationally, 4.47 million homes have sold, which is behind the 5-6 million home sales, considered to be a normal or healthy range.  The chief economist for the National Association of Realtors feels 5 million sales next year is attainable, "but it will require more sensible lending standards and strong job creation to push beyond that."