Northeast Ohio
Real Estate
November 4, 2022
Happy Friday!
Hope you are doing well and had a great week!

Thank you for checking out this email. If you have any questions, please don't hesitate to reach out.

Listing of the Week
3 Meadowlawn Drive #7 Mentor, OH 44060
Check out my newest listing! Meticulously maintained and recently updated move-in ready townhome in the heart of Mentor. Expertly cared for, this unit is abound with updates: kitchen refresh, granite, appliances, carpet, in-unit washer + dryer, newer paint, and much more! Enjoy the privacy of your own beautiful patio, community pool, gated playground, basketball court, and pond. The attached garage and included A/C unit are some of the other many highlights of this desirable find. Conveniently located near Mentor Avenue, I-90, shopping and restaurants.

Click here for the ---> Listing Link
Repeat of 2008?

Given the current market shift we're experiencing, I have clients ask me all the time whether or not we are in a repeat of the downturn of 2008. In so many words, what we are dealing with is very different than that recession, and here are a few graphs which put that into perspective:
As you can see, there is much less inventory than 2007-2011. While we have seen an uptick in inventory the last three quarters, this is the market normalizing after the pandemic/low interest rate environment. The lack of abundant options indicate the current market is very different than what we have seen before.
During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home.

Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies
Another difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans.

All in all, these indicators show that we are not doomed for a repeat of 2008. Given the increase of inventory, the decrease in bidding wars, and the fact that home inspections are standard again, it's surely an interesting time to buy or sell depending on what your real estate goals are.
Pat Barmann
216.990.5719