Northeast Ohio
Real Estate
March 24. 2023
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Hope you are doing well and had a great week!

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Market Update
Existing-home sales reversed a 12-month slide in February, registering the largest monthly percentage increase since July 2020, Month-over-month sales rose in Greater Cleveland, as well as with all four major U.S. regions.

Total existing-home sales completed transactions vaulted 14.5% from January to a seasonally adjusted annual rate of 4.58 million in February.
Year-over-year, sales fell 22.6% (down from 5.92 million in February 2022).
Moreover, we're seeing stronger sales gains in areas where home prices are decreasing and the local economies, including Northeast Ohio, are adding jobs.

Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022. Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties

Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022. Fifty-seven percent of homes sold in February were on the market for less than a month.
First-time buyers were responsible for 27% of sales in February, down from 31% in January and 29% in February 2022.

All-cash sales accounted for 28% of transactions in February, down from 29% in January but up from 25% in February 2022.

According to Freddie Mac, the 30-year fixed-rate mortgage(link is external)
 averaged 6.60% as of March 16. That's down from 6.73% from the previous week but up from 4.16% one year ago

It's a mixed bag, with some very positive trends as well as some news which cause for another very competitive Spring market. Personally. I have seen a major uptick in strong offers. If priced correctly, sellers are seeing multiple options. Buyers, when given the data, are able to secure coveted properties given they take the guidance of a real estate professional.
What are the costs of buying a home?
For anyone who has worked with me, you know our buyer consultation covers the estimated costs of buying a home. How much the costs are, who pays them, when the costs are due, and the why behind it all. For those who haven't met with me to discuss buying, here is an abbreviated rundown of the costs of buying:

Inspection and Appraisal
On average locally, an appraisal will be in the range of $500-$750. The lender orders this and you don't have any say in this cost.

An inspection is roughly in the range of $500-$700 range. It is highly encouraged to work with a reputable and recommended inspector. While there are many excellent inspectors licensed in the State of Ohio, I have seen deals fall apart due to a poorly executed inspection.

Lender fees
Being a former lender, I have many connections for excellent local lenders in the area. These experts offer competitive fees and the know how to get you to the closing table on time. When comparing lenders and their fees, it's important to be sure you are comparing apples to apples. With that in mind, I am happy to help anyone make sure they are getting the best rate/fee combination and would be happy to assist anyone with this. This goes for my clients and also non-clients as well.

Discount Points
If you decided to pay for discount points at closing to lower your interest rate, this is called paying points. Talk to your lender to go over your options to see if this makes sense for your situation. Depending on how long you will be in the home, this could save you thousands in the long run.

Home Insurance
When working with buyers, I always have several recommendations for excellent insurance agents specializing in NEO Real Estate. I always suggest a few choices, and that includes reaching out to the company that currently handles your auto insurance for a potential bundle discount.


Title insurance
Title insurance is a lender mandate that protects your ownership of the property, heading off a number of unsavory situations such as fraudulent claims, courthouse errors, liens, and family disputes. Unlike home insurance, title insurance is a one-time fee. Very rarely, the seller will pay for title insurance. However, this is uncommon in the current market. Happy to chat to see if this is something that could be an option for you!
LISTING OF THE WEEK
585 Magnolia Court
Mayfield Village, OH 44143

Beyond thrilled for my buyer clients who have started a new construction for a magnificent home in Mayfield! Closing was this week, and the builder is set to start digging the foundation in the next few weeks.

This stunning 4 bedroom/ 4.5 bathroom with an oversized walk out basement. Vaulted ceilings in the kitchen and great room with an open concept gourmet style design. This is the perfect fit for my clients and I'm so excited for their family!

Click here for the ---> LISTING LINK
Pat Barmann
216.990.5719