Lakewood Real Estate On Pace For Another Solid Year
October stats from the local Multiple Listing Service (MLS) serving our 15-County area were just released. The real estate recovery for Single Family Homes continues at a modest pace. October sales were up over last year by 3.4%, but remain down year to date by about 1.2%. The October Average Sales Price was down nearly 3% over last October, but remains up 2% year to date over last year. Market time remains unchanged for the area, remaining steady at 91 days.
Lakewood continues to outpace much of the area. Currently, the sale of Single Family Homes is on pace to increase by 5% over last year, with projected sales of 458 units, or more. Last year sales totaled 436 units, and in 2012 it was 395. Not a bad recovery from the low in 2010, with only 323 sales.
Most impressively, however, is that the Median Sales Price is holding steady at $129,500 through November 18th. The MSP last year was $122,500 and in 2012 it was $108,000.
Perhaps the most interesting fact, however, is that this recovery is taking root while inventory is at historically low levels. New listings through November 18th totaled 507 homes. In 2009, there were a total of 667 listings (unique addresses) on the market! Last year there were 539 new listings on the market. Inventory peaked in April 2010 when there were 333 single family homes actively for sale. As of November 18th, there are only 123! If we adjust for the number of "contingent" properties the adjusted number actually drops to 102 active homes for sale!
So what's behind the recovery? Part is due to simple supply and demand. Inventory remains low, and buyers are in the market. Homes, in great condition and priced appropriately, are selling quickly and for near or over list price. Low interest rates are another factor. Rising rental rates are causing potential buyers to pause and compare the cost of purchasing versus renting. While it is not always the best option for everyone, many potential renters are going the purchasing route as a better economic option. Of course another factor is the "it" factor. Let's face it, Lakewood is proving year after year that it is THE preferred place to call "home", especially for the first time buyer.
There is still some time left in the 2014 selling season. My prediction is that Lakewood will continue to remain hot as we watch the temperatures drop and the snow fall. You can continue to follow local activity at www.HomeValuesInLakewood.Info as well as www.ClevelandsRealEstateSource.Info.
Chris Bergin is a licensed real estate agent with Berkshire Hathaway HomeServices Lucien Realty in Lakewood and can be reached at Chris@ChrisBergin.com.