Real Estate Update

The Northern Ohio Regional Multiple Listing Service recently released the July Statistical Report for the 15-county area that makes up NE Ohio. Year to date, New Listings are up 4.8%. Sold Listings are up 13.4%. Sales Volume is up 17.1%! The Average Sales Price continues to improve, up 3.3% through 7 months. Market Time continues to improve, dropping 4% to an average of 90 days.

Locally, while Lakewood remains one of the hottest cities on Cleveland's west side, challenges remain. As of August 25th, there were only 93 Single Family Homes for sale. As of the same date there were 90 homes under contract. For comparison, back in 2008 there were over 300 homes for sale!

Through August 25th, 280 Single Family Homes have sold. During the same period last year, 283 homes sold. The average time on the market has continued to improve, dropping from 78 days to 70. The Average List Price has increased 7%, from $163,800 last year to $175,000 this year. The Average Sales Price has also continued to improve, increasing by 8% to $165,300. The Closed Price-to-List Price Ratio remains nearly unchanged, with the average home selling for 98% of list.

The challenge remains with inventory. The market remains very competitive for buyers, with only 93 homes for sale (as of 8/25). While the number of new listings is up across NE Ohio by nearly 5%, new inventory in Lakewood is down nearly 9% compared to last year. It is interesting to note that the sales volume remains unchanged, with $4.6M in real estate changing hands this year as well as last. Until more inventory comes on market sellers will continue to have the upper hand and buyers will continue to find themselves in multiple offer situations.

A quick analysis of the sold inventory reveals what buyers are looking for. Year to Date sales under $100k comprised 25% of the market. Sales between $100-150k (109 units) were the highest making up 39% of the market. Sales between $150-200k represented 18%; $200-300k was 11%; $300-400k was 4.6%; $400-600k was 1.4%; and sales over $600k was just under 2% of the market.

The good news is that of the 93 homes for sale, 39% are between $100-150k. Buyers, however, looking in other price points are going to find the market extremely competitive. Investors have even had to "sharpen" their pencils-- there are only 16 homes for sale under $100k!

The expectation is for Lakewood to remain a hot, desirable community for buyers to call home. Buyers will need to be ready to act when their dream home hits the market, at least until the number of homes for sale climbs to levels well over 100. Buyers ready to act can keep an eye on market conditions at www.HomeValuesInLakewood.Info. Home owners thinking of selling may access the same site and track sold inventory, home values, and view potential competition. Buyers should also secure a professional real estate agent that can help identify potential properties quickly and ensure the buyer gets their foot in the door before the property is sold. If you are looking to buy you will be glad you did!

Chris Bergin is a licensed real estate agent with Berkshire Hathaway Lucien Realty in Lakewood and can be reached at Chris@ChrisBergin.com.

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Volume 11, Issue 18, Posted 1:57 PM, 09.01.2015