2014 Posts Another Solid Year For Real Estate
2014 posted another solid year for Lakewood real estate! Despite historically low levels of inventory, Lakewood still managed to surpass sales of 2013 by nearly 3%, with 449 Single Family Homes transferring ownership! Not only were sales up again, but the Median Sales Price jumped another 7%, finishing at an even $131,000. In 2013 the median was $122,300 and in 2012 it was only $108,000. Not a bad little recovery run for Lakewood!
Other good facts from 2014: The Original List Price averaged $134,900 (an average of $87 per square foot); Days On Market averaged 55; and the Sales Price to List Price Ratio was 97.5%. Many homes sold at or above list price and more often than not sold in multiple offers.
But how did Lakewood stack up against some of the suburbs? Rocky River saw sales decline over 9%, with a modest 5% increase in the Median Sales Price. Although Bay increased sales by 1.64%, the MSP declined by 7%. Fairview was flat in sales, but posted a nice 11% improvement in the MSP. Westlake sales dropped by 16% but was still able to post an improvement in the sales price by nearly 3%. A complete city-by-city report can be obtained for free by emailing the subject line "Community Comparison" to Chris@ChrisBergin.com.
Let's take a look at where the sales were in 2014. Nationally the number of foreclosures on the market was down and Lakewood was no exception. In 2013 the number of sales below $60,000 comprised 15% of the Lakewood market. In 2014 this dropped to only 8% of the sales.
The market between $60-100k remained steady, making up 20% of the market in 2013 and 19% this past year.
The largest gains were in the typical "first time home buyer" range, homes sold between $100-200,000. In 2012 this range was 45% of the market. In 2013 it grew to represent 50% of the market. Last year it jumped again to represent 57% of the sold homes in Lakewood!
The remainder of sales remained fairly consistent. Sales between $200-400,000 finished at 11% and 12% respectively. Sales between $400-600 dropped 1%, comprising 2% in 2014 while the sales over $600,000 grew 1% to comprise 2% of all sales.
Where does Lakewood go from here? Moving forward we can expect values to continue to improve at a modest pace, between 1-3%. Inventory remains at historically low levels. As of January 14th, there were only 98 Single Family Homes for sale. This will make it difficult for buyers looking to make a purchase this year. As sellers begin to feel more confident, inventory will begin to grow. Until then, buyers and sellers should anticipate this to be a fairly strong sellers market, with multiple offers being more common than not. Sellers who see their homes sit on the market for more than 3 moths should review their marketing and pricing strategies. February is the perfect time to consult an expert and place your home on the market! Start your homework at www.HomeValuesInLakewood.Info or www.ClevelandsRealEstateSource.Info.
Chris Bergin is a licensed real estate agent at Berkshire Hathaway Lucien Realty in Lakewood and can be reached at Chris@ChrisBergin.com.