Housing markets all over the United States have been drastically changing because of the pandemic. Many cities that used to be hotspots for people to move into are now losing their residents and certain housing markets are seeing a huge jump that has not been seen before.
Cleveland is home to 385,282 residents currently and is typically one of those housing markets that is not usually booming per se. According to an article done by Forbes, Cleveland is now one of the country’s top 15 hottest housing markets going into 2021.
How did the Housing Market get this way?
The significant turn seen in the Cleveland real estate market was something that was onset by the drop in housing sales brought on by the pandemic. The pandemic caused many to lose their jobs and caused the country to go into an economic upheaval.
One of the major reasons people began to buy houses again was the record-low mortgage rates seen all throughout the country. To get an idea, for 30-year loans, the rate was at 2.66% and for 15-year loans, the rate was at 2.17%. These rates are the lowest anyone has seen in 50 years, which was tracked by Freddie Mac.
As to why many people chose Cleveland as their place to buy a home: low housing costs. In 2019, the median home price in Cleveland, in both the suburb and metro area, was around $123,500. In 2020, that price rose to $140,000. In all of Cuyahoga county, the average home sale prices have increased at a faster rate than they have since 2008 because of this. This is still $200,000 below the median listing price in the United States for 2020 though, which was at $340,000.
Though there has been a decline in the job market in the city, many who have now been working from home don’t have to worry about finding a job in Cleveland necessarily. It is now easier for those working from home to move into Cleveland since the housing is cheaper than a lot of other places.
All of these reasons combined created a huge increase in those looking to buy a home in Cleveland. With such an abrupt surge in sales for homebuying, this has also resulted in a decrease in inventory for homes that are on the market.
According to Cleveland.com, home sales did drop very slightly, at 0.6%, but this seems to just point to the fact that less homes are coming on the market right now. This may lead to the housing market only becoming more competitive in the coming months.
On top of all this, according to Roofstock, over 50% of homes in the are also occupied by renters. This could also be appealing to those looking for rental property or investment property to buy, which only adds to the demand.
How to Stand Out Amongst Other Buyers
So, after seeing how the housing market has gotten this way, it may be a bit discouraging if you are looking to buy a home in Cleveland. Many current potential buyers are getting frustrated after losing out on so many homes. There are a few things you can do though, to try and stand out from others looking to buy as well:
- Have your Documents in Order: Since homes are selling so quickly be sure to have all of your proper documentation in order and be all up to date on approvals. It is also important to have your documentation organized and ready to send to the seller.
- Appease the Seller: Learn about what the seller sees as a potential bonus with someone looking to buy their house. This could be repairs they don’t want to do or covering for other things before selling. If you agree to take responsibility of those things, they may be more inclined to accept your offer.
- Be Ready: This could go without saying, but in a highly competitive housing market like the one in Cleveland, you have to be ready to jump on a house the first opportunity you get. So, if you like it, don’t hesitate to put in an offer.
Is Now a Good Time to Buy in Cleveland?
If you are someone who is looking to buy a house in Cleveland right now, you may just have to be patient. As mentioned previously, a lot of current buyers have lost out on many houses and it can start to get frustrating.
With the tips above, you can start to plan how to stand out from other buyers. You have to be persistent if you are looking for a home here and jump on any opportunity you have for a house that you like.