Cleveland, Northeast OH Area Real Estate Market March 2014

According to the Northeast Ohio Regional Multiple Listing Service (NORMLS) and an article from the Cleveland Plain Dealer newspaper, homes sales in the region decreased from February to March. Lower home inventory, higher rental prices and higher buyer demand due to low (but climbing) interest rates, have been driving this increase in activity and increase in sales prices over the past year or so. Sales and price gains actually dipped a bit recently, however, which is being attributed to the harsh winter weather experienced in the area.
Sales from February to March do show an increase, however, sales from March 2013 to March 2014 show a decline.  Among the 15 counties in Northeast Ohio, single family home sales are down 5.9% and condominium sales are down 15.5%. Year-to-date, local sales of new and existing homes were lagging by nearly 1.7%.  Single family home prices were up 1.8%, compared to last year. Condos were up 7.7% higher than March 2013.

Ohio's sales volume showed a decline by 6.6% from March 2013, while the US market is experienced a sales volume decrease of 7.5%.  Ohio's sales prices have increased by 3.3% from last March and national figures have shown a 7.9% gain.  Ohio and Northeast Ohio's price increases have slowed or stabilized recently, while the US sales prices continue to rise at a higher rate, which has been historically the case in our area compared with the nation. 

The key point here is that the market is starting to stabilize and shifting to a seller's market.  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 slightly, hovering around 4.5%. 

This is a great time for buyers who also have a home to sell, because rates are still relatively low on the buying side, but home values have risen in many areas to improve the financial return on the selling side.  If the economy continues to improve, buyers in the current market will be able to realize value gains for the homes they purchase as well.