Northeast Ohio
Real Estate
February 11. 2022
Happy Friday!
As we near mid-February and Lake Erie is nearly 50% frozen, I hope you and your family are staying warm and enjoying the winter season!

In the last two weeks, we have seen a slight uptick in the market. Buyers and sellers alike and prepping for the spring season. However, I have personally seen more showings/contracts as buyers looking to lock in a home now.

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, prices have been increasing slightly the last few months.

I expect that number to grow as sellers further take advantage of the market and continue to raise listing prices given the market and current inflation numbers.

The bottom line, it's a great time for sellers to list and use the inventory to their advantage. It's also a wonderful to buy sooner than later- especially to lock in a 30 year fixed mortgage before the next rate hike.
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End of Ultra Low Rates

Mortgage rates jumped to their highest level in two years—and they’re expected to keep rising.
The average 30-year fixed mortgage rate increased 14 basis points to 3.69% this week, its highest point since the first week of 2020, according to Freddie Mac data. The increase follows a selloff in Treasuries over the past week that has intensified Thursday. The yield on the 10-year Treasury jumped above 2% for the first time since 2019 after January’s hotter-than-expected inflation report.

Mortgage rates have climbed in the first months of the year. This week’s rate was 58 basis points higher than the last reading in 2021 and nearly 1 percentage point higher than the same week last year. (One basis point is one-hundredth of a percentage point.)
Rates have largely been expected

UPDATE: Housing Forecast
Homebuyers saw home prices soar to their highest clip on record in 2021. Housing economists saw that price growth—which peaked at a year-over-year rate of 20% last year—as simply unsustainable. Their economic models agreed: Among the seven forecast models reviewed by Fortune heading into 2022, every single one predicted home price growth would slow significantly this year.

But over the past few weeks, that consensus is no longer so unified. Now, more industry insiders are throwing out their previous forecasts and replacing them with more bullish short-term outlooks. Indeed, some experts say the 2022 spring housing market might go down as one of the most competitive on record.

Look no further than Zillow. Back in December, the home listing site predicted that U.S. home values would climb 11% this year. Economists at Zillow now say that forecast is too conservative. Their latest forecast finds home prices are set to spike 16.4% between December 2021 and December 2022. If it comes to fruition, it would mark another competitive year for home shoppers.

Read the full article at this--> LINK
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Listing of the Week
36345 Churchill Drive, Solon

A pair of my clients were lucky enough to get this highly desirable Solon home under contract in the last 10 days. Spacious 3600+ square foot contemporary style colonial situated on just over a half-acre in the Churchill Downs subdivision with a great floorplan. Congrats to my buyers!

Cheers!

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