Cleveland Housing Market Trends and Forecast for 2024

CEO Khai Intela
Cleveland, Ohio is a vibrant and thriving city with a rich history, diverse culture, and a strong economy. Situated along the southern shore of Lake Erie, it offers a great quality of life for those...

Cleveland, Ohio is a vibrant and thriving city with a rich history, diverse culture, and a strong economy. Situated along the southern shore of Lake Erie, it offers a great quality of life for those who enjoy outdoor activities. With its bustling job market and entrepreneurial opportunities, Cleveland has become a hub for businesses and professionals.

The Cleveland housing market has experienced its fair share of changes and challenges over the past year, influenced by both local and national factors. In this article, we will delve into the current trends and forecast for the Cleveland housing market in 2024, providing valuable insights for potential buyers and sellers.

Current Cleveland Housing Market Trends

According to data from Redfin, the Cleveland housing market shows a certain level of competitiveness. With an average of 3 offers per home and an average selling period of just 29 days, buyers and sellers need to act swiftly. In November 2023, the median home prices in Cleveland experienced a 9.18% decrease compared to the previous year. The median price settled at $100K, and homes are now selling two days faster than the previous year's average of 31 days. The number of homes sold in November increased to 367, up from 355 the previous year.

Comparative Analysis

When compared to the national average, Cleveland's median sale price is notably 73% lower. The sale-to-list price ratio stands at 95.2%, reflecting a 0.69 point decrease year-over-year. Additionally, 24.5% of homes were sold above the list price, marking a 5.6 point decrease from the previous year.

It's worth noting that in the recent period from October '23 to December '23, 20% of Cleveland homebuyers expressed interest in moving out of the city, while 80% aimed to remain within the metropolitan area. Nationally, only 0.72% of homebuyers considered moving into Cleveland from outside metros. Among the metros interested in relocating to Cleveland, Wheeling led the pack, followed by Los Angeles and New York.

Buyer's or Seller's Market?

The current Cleveland housing market leans towards being a seller's market. The average time on the market is relatively short at 29 days, and homes receive multiple offers. Additionally, the average homes sell for about 4% below the list price, indicating the competitive nature of the market. However, specific factors may influence individual transactions, and it's essential to consider them.

Home Prices Trend

The recent data indicates a 9.18% decrease in home prices in Cleveland compared to the previous year. While this decline is notable, it doesn't necessarily indicate a market crash. Instead, it reflects a shift in the local real estate landscape. Various factors contribute to this, including market dynamics and external influences. As a potential buyer or seller, it's crucial to stay informed and adaptable.

Predictions on Market Stability

While the recent drop in home prices may raise concerns, it's important not to predict a housing market crash solely based on this data. Real estate markets are influenced by a myriad of factors, and fluctuations are not uncommon. Before making any decisions, individuals should assess their specific circumstances, financial readiness, and long-term goals.

Cleveland Housing Market Forecast for 2024

Based on the current data and the positive 1-year market forecast, there are no indications of an impending housing market crash in Cleveland. The market appears stable and poised for growth in 2024.

According to Zillow, as of December 31, 2023, the average home value in Cleveland-Elyria stands at $211,496, marking a 5.9% increase over the past year. Homes in this region also boast a quick turnaround, typically going pending in around 12 days.

Market Forecast and Inventory Overview

Looking ahead, the 1-year Market Forecast (December 31, 2023) indicates a positive trend with a 3.3% increase. As of the same date, there are 4,895 homes for sale in Cleveland, and 1,734 new listings have been introduced to the market. This dynamic real estate landscape indicates opportunities for both buyers and sellers.

Median Sale Prices and List Ratios

Understanding the median sale prices and list ratios provides valuable insights into market competitiveness. The median sale price as of November 30, 2023, is $185,133, while the median list price as of December 31, 2023, is $204,967. These figures are complemented by a median sale to list ratio of 1.000 as of November 30, 2023, indicating a balanced market.

Market Dynamics: Over and Under List Price

An intriguing aspect of the Cleveland housing market is the percentage of sales over and under the list price. As of November 30, 2023, 42.2% of sales were above the list price, showcasing the competitiveness of certain properties. Conversely, 43.5% of sales were under the list price, providing opportunities for strategic buyers.

Cleveland Housing Market Forecast for 2024 Source: Zillow

Cleveland Real Estate Investment Overview

If you are considering investing in real estate in Cleveland, here are some compelling reasons to do so:

  • Cleveland is ranked among the top 10 job markets for new college graduates by CNN.
  • The city is home to 70% of Fortune 500 companies, providing a robust business environment.
  • More than 400 bioscience companies operate in Cleveland, making it a hub for cutting-edge research and innovation.
  • The recent establishment of two Amazon distribution centers in the area further contributes to economic growth.
  • Cleveland boasts over 120,000 healthcare professionals and is home to 27 area colleges and universities.
  • With four professional sports teams, the city offers a vibrant and exciting lifestyle.

Positive Demographic Trends

Cleveland's population has remained stable at around 400,000 residents, which is a significant advantage compared to neighboring cities like Detroit. The steady population growth, coupled with new employers and attractions, has resulted in spikes in property valuations in specific neighborhoods.

The Bright Future of Good-Paying Research Jobs

Cleveland has made significant investments in healthcare and bio-science business accelerators, positioning itself as a leader in healthcare advancements. Investors can find affordable properties for development and rental to professionals working in these facilities. The Health-Tech Corridor in Cleveland is attracting high-tech companies, further boosting the real estate market.

Downtown Brownfield Re-Development

Cleveland is intentionally redeveloping former industrial sites and turning them into multi-use properties. This includes projects like converting the Terminal Tower into a shopping and entertainment district. The Cleveland Gateway project aims to transform 65 acres into a densely populated urban neighborhood, combining housing, trails, and parks. Investing in properties around these redevelopment projects can lead to significant value appreciation.

University Circle & The Western Rim

University Circle is a highly sought-after neighborhood in Cleveland, experiencing a wave of high-end condos and apartments. Investing in single-family rentals or multi-family housing in this area can be a lucrative opportunity. The Western Rim of Cleveland is also seeing substantial growth with proposed projects worth millions of dollars. The surge in businesses opening in this area is expected to drive the housing market's growth.

The Redeveloped Lakeshore

Cleveland's waterfront district is undergoing significant redevelopment, creating mixed-use properties and revitalizing the area. Infrastructure improvements, such as bridges and trails, make the lakeside a desirable location for both residents and investors. Investing in properties near these redeveloped areas can yield attractive returns in the Cleveland real estate market.

A New Lease on Life for Old Buildings

To meet the increasing demand for housing, old commercial buildings in Cleveland are being converted into new residential spaces. This adaptive reuse strategy breathes new life into historic structures and provides unique housing opportunities.

Catering to the New Medical Talent

Cleveland's focus on healthcare and biotechnology attracts medical professionals and students from around the world. Investment properties near healthcare facilities and medical schools can yield steady rental income and long-term value appreciation.

In summary, the Cleveland housing market in 2024 shows promising signs of stability and growth. With its diverse economy, strong job market, and ongoing redevelopment projects, Cleveland offers attractive opportunities for real estate investors. By staying informed and understanding market trends, individuals can make informed decisions that align with their financial goals.

References: Market Data, Trends & Statistics

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