A recently published forecast for the Cleveland, Ohio housing market in 2018 suggests that home-price appreciation could begin to slow down, following a year of double-digit gains. In a separate report, Cleveland was singled out as one of the cities where it’s actually cheaper to buy a home than to rent.
Here are the latest trends and predictions for the Cleveland real estate market, as we move into 2018.
Cleveland, Ohio Housing Market Forecast & Trends: 2018
Home prices in Cleveland rose steadily and significantly during 2017, and they are expected to continue trending north for the foreseeable future. This is according to a recent forecast for the Cleveland housing market that stretches into 2019.
According to the real estate data company Zillow, the median home value for the city rose to around $62,000 at the end of 2017. While that’s very affordable by national standards, it represents a significant increase from a year earlier. The median house price rose by 10.9% during the 12-month period ending in December 2017, according to Zillow. That’s well above the national average.
The median house value for the broader metro area was $137,000 at the end of 2017.
Looking forward, the company’s economists predict that home prices in Cleveland will continue to rise throughout 2018, but at a slower pace than what we’ve seen over the past year. In other words, price growth is slowing to a more “normal” rate of appreciation.
The company’s latest forecast for the Cleveland real estate market, as of January 2018, predicts that prices will rise by around 4.2% over the next 12 months.
Editors note: Housing predictions like these are the equivalent of an educated guess. So you probably shouldn’t “bank” on them. Still, they do offer some insight into the current (and possibly future) state of the real estate market.
More Inventory Available, Compared to National Average
Low prices are one thing that sets the Cleveland housing market apart from many other cities across the U.S. Inventory is another distinguishing factor. In many major cities, there is a severe shortage of homes for sale. But Cleveland is actually doing better in that department.
A normal or “balanced” real estate market is said to have a five- to six-month supply of homes for sale. But at the start of 2018, many cities across the country had less than a three-month supply. Some of the hottest housing markets were down two a one-month or two-month supply. The national average was 2.6 months as of December 2017.
Cleveland had nearly a four-month supply during the same timeframe. That’s still a bit lower than what is considered to be a balanced market, but it’s better than many cities in the U.S. The bottom line here is that home buyers planning to buy a house in Cleveland during 2018 should have a decent amount of inventory to shop from.
But it’s still a fairly competitive real estate market. Relatively low housing costs and low mortgage rates will lure buyers into the market throughout 2018. Especially when you consider that buying is reportedly cheaper than renting, as explained below.
Buying a Home Beats Renting in Cleveland
The general consensus and forecast for the Cleveland housing market is that prices will cool a bit but continue rising in 2018. For now, though, buying a home is still cheaper than renting. That’s according to a recent report by ATTOM Data Solutions, a property data company.
The company’s recently published “Rental Affordability Report” revealed that buying beats renting in Cleveland and in the rest of Cuyahoga County, Ohio. From a cost perspective, at least.
According to a January 2018 press release that accompanied the report:
“Among the 39 U.S. counties analyzed in the report with a population of 1 million or more, the nine where it is more affordable to buy a home than rent were Tarrant County (Dallas), Texas; Broward County (Miami), Florida; Bexar County, (San Antonio) Texas; Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; Hillsborough County (Tampa-St. Petersburg), Florida; Cuyahoga County (Cleveland), Ohio; Allegheny County (Pittsburgh), Pennsylvania; and Saint Louis County, Missouri.”
Disclaimer: This article includes various trends, forecasts and predictions for the Cleveland housing market throughout 2018 and into 2019. Those projections were issued by third parties not associated with our company. We have compiled them here as an educational service to our readers. The publishers of this website make no claims or assertions regarding future conditions within the real estate market.