An update on our Cleveland real estate market using the latest data.

What a difference a week can make! A lot has changed since my latest market update. Let’s dive into the numbers and discuss what’s happening in our market.

The 30-year fixed mortgage rates are currently at 6.28%. A week ago, there were closer to 5.5%, which means we saw a huge move in just one week. In January, I predicted that rates would hit 5.5% by the end of the year, but we’ve already blown past that. 

This is starting to have an effect nationwide. New home sales are down 16.6% in April, which is a big decline. Existing home sales fell by 2.5% in April, and they’re down 5.9% compared to last year.

What I find interesting is that a few national real estate brokerages are laying off people en masse. Compass Realty has laid off 10% of its workforce, and Redfin Realty has laid off 8% of its workforce. They must be getting concerned about what’s happening in the national market.

“If you’re thinking about making a move, you have to do it now. ”

But what’s happening in our neck of the woods? I really like the chart at 2:12 in the video that compares the list price and the days on market. The days on market has been steadily decreasing since January, which is what we want to see. At the same time, the list price is meandering up and to the right. Neither of these trends indicates a slowdown.

The next chart at 2:55 compares the close price to the list price telling you what percentage of the list price you’d get when you sell a home. The average sits at a little over 100% right now, and it has been moving up all year. Again, this doesn’t indicate a slowdown. The final chart at 3:30 shows the average sales price, which isn’t going down either.

We’re simply not seeing signs of a slowdown in any of our data, but we can look to other markets. The data we see there is almost like storm clouds rolling in; you can see what’s coming, and you know it will eventually reach you. I think our market is holding up so well because Cleveland is so affordable compared to other parts of the country. However, as interest continues to climb, homes will get more and more expensive and we’ll start to see the market slow down eventually.

If you’re thinking about making a move, you have to do it now. If you have any questions about this update or the market in general, feel free to call or email me. I would love to help.