I was talking to a real estate agent recently who said that her sellers are scared about a significant downturn in the market and missing out on the higher values. The agent went on to mention that many people she knows would like to sell their home but are afraid of not finding another one because inventory levels are so low.
Both fears are understandable. As the following data reflects, we’re not seeing a downturn in the market in terms of prices or demand. However, being afraid to find another home to buy is a real concern!
Let’s take a look at what’s going on in Cuyahoga County.
In April, we saw the lowest number of monthly single-family home sales in Cuyahoga County since 2015. (I realize that the cart below only goes back to 2018.) Things are incredibly slow right now in terms of sales activity.
Here is a video of a panda enacting the falling number of single-family sales we have seen in Cuyahoga County within the past couple of months.
Hey, this panda gets it!
What about current active listings?
In April, we are at the same level of total active listings that we have seen in 2021 & 2022. I know, it’s getting old. Same news, different year.
That has translated into multiple bids again and prices increasing. I just appraised a home in Parma with forty-three offers in four days. It sold for considerably above its list price. And I found sales that supported the contract price that had sold within the past month. This is despite the considerably higher mortgage interest rates. I should note that this is not the same with every segment of the market. Having this many offers on one home is unusual. However, multiple bids on homes are becoming more common again since there is not much to choose from out there. The home I just mentioned sold for just over $200K and was listed in the mid $170’s.
Last year around this time, the median sales price was $186,000. Last month it was $200,000.
Interestingly, here is the same panda demonstrating what single-family home prices are doing right now in Cuyahoga County. It’s been a healthy climb.
Nature imitating housing. It’s beautiful. Someone really should interview these guys. They seem to have a good pulse on the market in this area.
We’ve had under two months of inventory for the past couple of months. This means that if nothing else was listed, it would take just under two months to sell all of the homes on the market. This has really put a floor on price declines for many segments of the market.
In Cuyahoga County, the median days on the market for single-family homes is 20 days. But when appraising properties, I am seeing many homes sell much faster. This goes back to what I was saying earlier. Many homeowners realize that if they put their home on the market, it will likely sell in days.
You’ve got to move fast if you’re going to buy a home in this market!
The housing market is in a catch twenty-two. Homeowners need to sell their homes to make inventory for buyers. But sellers are also typically also buyers because they are usually looking for another property to purchase. Most sellers are also locked into much lower mortgage interest rates than today’s rates. For some homeowners that need to move, it makes more sense to rent their home and keep the low-interest rate than to sell.
Additionally, many homeowners spent a lot of time and money making their homes comfortable during the pandemic. So, why would they choose to sell their homes now if they don’t need to?
We’re in a catch twenty-two here. None of us knows what will break the current cycle. But something probably will at some point.
The lack of inventory right now has proved to be a blessing and a curse for the housing market. This lack of sales activity has been difficult for many real estate professionals. Most real estate agents and appraisers I have spoken with say that they are struggling with business more now than in 2008. There’s just not much happening.
Thanks for continuing to read my articles! I hope that they offer something of value to you.
Cover photo from Pexels.com
Well, since I’m on a panda kick this week, I leave you with some more panda antics. How many of these panda moves can you relate to the housing market? Have some fun making some comparisons!
Have a great weekend!
If you enjoy listening to podcasts, check out mine. I hope you enjoy it! You can find me on Apple Podcast, iHeart Radio, Spotify, Google Play Music, Sound Cloud, Radio.com, RadioPublic, Deezer, Breaker, Stitcher, and other feeds.
You can also listen right here at Cleveland Appraisal Blog!
I am a member of the National Association of Appraisers. If you’re an appraiser, and you’re looking to join an appraisal organization, please check them out. The NAA is made up of fantastic appraisers from across the country who are working hard to keep their fellow appraisers up to date on what’s happening.
Click here to visit their website.
Here are some links to other articles I think you might also enjoy…
Housing Is No Vacation: Stavanger Edition – Housing Notes by Jonathan Miller
Phil welcomes… Dr. Mark Calabria!!! – Voice of Appraisal with Phil Crawford
A New Appraisal World – The Appraisal Update Podcast
How a Retrospective Appraisal Can Help In The Estate and Tax Planning Process – Birmingham Appraisal Blog
Data Collectors: Appraisers vs. Uber Drivers – APPRAISAL TODAY
How Do I Move to EBV? – George Dell’s Analogue Blog
A tale of two markets & pivoting when the housing market changes – Sacramento Appraisal Blog
Quantity or Quality? – The Real Value Podcast with Blaine Feyen
USPAP – It Ain’t Binary! – Tim Andersen, The Appraiser’s Advocate Podcast
What is ChatGPT and How Can Appraisers Utilize It? – The Appraiser Coach Podcast with Dustin Harris
For my readers in the CLE area… here are some articles related to news in our local area that you may enjoy…
Warner & Swasey Observatory: A hilltop gem turned architectural relic – Karin Connelly Rice of Freshwater Cleveland
Photos: Awesome Mash-Ups Combine Cleveland’s Past and Present – Cleveland Scene
2 thoughts on “Home Sales are Falling in Cuyahoga County While Prices Continue to Increase”
I love to read about other markets. Thanks for sharing this, Jamie. The volume doesn’t look like too sharp of a downtrend thankfully. It seems like it’s been flirting with the lower end of the range (besides this past month that dipped below). Supply is freakishly low though. Wow!!
Thank you so much Ryan! It does look like we may be towards the bottom in terms of sales volume. It definitely is crazy low right now. Hopefully we will turn the corner this month. Based upon what I am seeing, we probably will. It is a really weird market right now.