Northeast Ohio
Real Estate
September 2, 2022
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Housing Recession not Decreasing Home Prices

Despite talk of a “housing recession,” don’t hold your breath waiting for home prices to suddenly decline any time soon. In fact, prices are expected to grow through 2023, according to several housing forecasts.
The market does seem to be cooling, however. With higher mortgage costs, U.S. home sales are down over 20% from a year ago. And last month, the median price for an existing home in the U.S. dropped from a record high of $413,800 to $403,800, according to the National Association of Realtors.

But considering that median home prices have soared by nearly 36% since the pandemic began, a one-month price reduction of around 2.4% can be seen as more of a market adjustment than a significant decline in value. 
Housing prices are still expected to be up 11% for 2022, followed by 2% in 2023, This follows similar forecasts by Freddie Mac, Fannie Mae and Zillow, which predict positive — albeit slowing — price growth in 2022 and 2023.
And despite the decelerating price growth, median home prices are still up 10.8% from a year ago, For context, median home prices have risen by roughly 4.5% a year since 1992, according to Federal Housing Finance Agency data.

“This isn’t a recession in home prices,” says Lawrence Yun, an economist. “A price decline on a nationwide basis is unlikely.”
First Time Buyers gain traction as cash offers begin to wane.
Potential home buyers are getting some breathing room as sellers have started to lower their asking prices and competition dips to the lowest level since the beginning of the pandemic.

Cash offers, which tend to beat competing bids that include a mortgage contingency, dropped to 24% in July, the lowest level of the year, according to the National Association of Realtors. The number of homes sitting on the market is increasing and a growing number of sellers are cutting their asking prices. About 8% of listings on the market each week face a discount, which is the highest share on record.

According to one Ohio brokerage, offers by their real estate agents fell to 44.3% on a seasonally adjusted basis in July, compared with a revised rate of 50.9% in June and 63.8% one year earlier, marking the sixth-straight monthly decline. This also is the lowest share on record aside from April 2020, when the beginning of the coronavirus brought the housing market to halt.
According to another national source, the typical home received 3.5 offers in July, compared with 4.1 one month earlier and 5.3 one year earlier. Based on what I have seen locally, this rings true in Greater Cleveland as well.

It's still a very interesting time to sell or buy. I'd be honored to speak with anyone you know who needs to buy or sell still in 2022.
Listing of the Week

24 Swan Street, Geneva OH 44041

My buyer clients were lucky enough to get this wonderful investment opportunity under contract! Very excited they were able to find such a wonderful short term rental investment and to win amongst 7 offers.

Absolutely stunning, move in ready, 4 bedroom 2 bath Bungalow! This home has been completely transformed! Remarkable updates throughout, while keeping the authenticity in this home. The kitchen hosts beautiful white cabinets, granite counters, kitchen breakfast bar, ceramic flooring & stainless steel appliances. You will love the openness from the kitchen to the dinning room to the living room. Enjoy the 3 season sunroom in the front of the home. This home features a first floor master, with bathroom. And, much more!

Click here for the ---> Listing Link
Pat Barmann
216.990.5719