Northeast Ohio
Real Estate
February 25. 2022
Happy Friday!
As we reach the end of February, I'm hopeful for an end to winter cold and the warming of spring. I hope you and your family are doing well, and enjoyed the Olympic/NBA All Star Game festivities.

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

As you can see in the graph, the average home is selling for 100% of the listing price for the last several months. This is a decrease from mid 2021, where the average was 101% listing price in Cuyahoga County.

In my experience, the move-in ready homes tend to have multiple offers within a day of listing in this winter market. As long as a home is priced appropriately, buyers are lining up at any options they have

The bottom line, as rates rise and inventory stays low, buyers need to be ready to be swift and aggressive in order to compete in this market. There are many tactics to make an offer stand out, and I'd be happy to share my insights.
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Mortgage Rates

The average rate for the benchmark 30-year fixed mortgage is 4.25%, an increase of 2 basis points over the last seven days. If you're looking to refinance your current mortgage, the national average rate for a 30-year fixed refinance is 4.20%, a decrease of 4 basis points since the same time last week. Meanwhile, the national 15-year fixed refinance is 3.44%, down 8basis points over the last seven days.
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Housing Forecast From Industry Giant Fannie Mae
While it is too early to be certain that the COVID era is nearing its end, Fannie Mae expects the story of 2022 to be one of transition for both the economy and the housing market. Unprecedented market and policy responses stemming from the pandemic will gradually be replaced by more typical pre-COVID economic and housing patterns. However, this will still take some time. Don't expect a complete reversal. Some of the behavioral and structural changes from the past two years may prove to be long-lasting. The durability of changes in work, schooling, and housing arrangements is yet to be seen. Even though inflation is expected to eventually ease, a higher-than-pre-COVID range is forecast for the foreseeable future. Therefore, this year can be described as returning to the "new normal"

The unemployment rate is now below 4 percent, and the Federal Reserve is poised to begin policy tightening (we now expect the first rate hike to occur in March). Thus, the economy appears to be entering the mature stage of the business cycle, during which growth decelerates toward the long-run trend. Robust labor demand and the ample need for firms to continue rebuilding inventories suggests to us that economic growth will be solid in 2022, but the period of rapid recovery has passed. Additionally, while we expect improvement to supply chain difficulties, there are risks around the speed at which this occurs, the duration of continued high inflation, and policy maker and financial market reactions to these economic conditions. For housing, the past year's demand surge was driven by a combination of factors, including low mortgage rates, down payments supported by stimulus checks and other savings, and a pandemic-driven reshuffling of preferences and move timing on the part of many households, all of which are expected to wane. Furthermore, Fannie Mae expects the recent rapid house price appreciation and rising mortgage rates will lead to growing affordability constraints, dragging on home sales, but also likely limiting further price appreciation to a more sustainable pace.

Read the full description at this--> LINK

Listing of the Week
180 Fox Hollow Dr Unit 100
Mayfield Heights

Check out my newest listing on the market as of this morning in Mayfield Heights! This end unit with a private entrance boasts a bright and spacious two story living room with a gorgeous fireplace. Features throughout include multiple ensuite bathrooms, updates to the kitchen, a secluded patio, and more. This townhome is a meticulously maintained gem and will go quickly!

Cheers!

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