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The Northeast Ohio Real Estate Market UpdateThe Northeast Ohio Real Estate Market Update

Ohio Housing Trends and Affordability Challenges

Ohio's housing market is in flux, with sales reaching a 10-month high and median prices climbing to $404,400, raising affordability concerns for first-time buyers. We discuss rising inventory levels, shifts in buyer preferences for condos and townhomes, and the decline of affordability, especially in Northeast Ohio. Tune in to see how these trends are reshaping real estate opportunities in the region.

Published OnMarch 12, 2025
Chapter 1

Rising Home Sales and Price Trends

Brian Moran

So, starting right off the bat, it's interesting to see home sales reaching a 10-month high at an annual rate of 4.24 million units. Now, that's a pretty substantial increase—2.2% month-over-month, and, more impressively, a 9.3% jump year-over-year. It's being largely driven by homes priced $500,000 and above, which suggests a particularly strong demand in higher-end markets.

Companion Claire

Wow, that's a, that's a huge swing. But it makes me wonder—what does that mean for, like, your average buyer? Are they just getting totally priced out here?

Brian Moran

In many ways, yes. With the median sales price nationwide climbing 10.2% to $404,400, affordability is definitely becoming a bigger challenge, especially for first-time homebuyers in places like Northeast Ohio. Even though this area has historically been more affordable than the coasts, we're seeing those affordability margins shrink.

Companion Claire

Right, because $404,000 for a median price—that's bananas for a lot of people. Let’s be real here. Ohio can’t be hitting those numbers, though, not everywhere. Or is it?

Brian Moran

Not quite that high, at least in many parts of the state. But the gap is closing. In Northeast Ohio, for instance, the median price increase of over 10% mirrors the national trend. That’s pulling a lot of first-time buyers out of the market. They’re stuck competing not just with other buyers but with investors who see these homes as a safe bet.

Companion Claire

Ugh, and that’s gotta be so frustrating if you’re like, "Hey, this is my chance to get a house," and suddenly... it’s not.

Brian Moran

Exactly. And think about this—rising prices are coupled with inventory changes. Fewer affordable options are even making it onto the market, creating this perfect storm. We’ll get into that more with housing supply numbers, but suffice it to say, many buyers are starting to feel boxed out.

Companion Claire

Right—like it’s a lose-lose situation. You’ve got prices climbing, options dwindling. It’s just... it’s a mess.

Brian Moran

And all of this ties back to a deeper trend—how low housing supplies post-pandemic are still impacting prices, competition, and affordability. For prospective buyers, it’s a lot to digest.

Chapter 2

Inventory Dynamics and Regional Variations

Brian Moran

So, continuing from where we left off on affordability and competition, one key factor driving these challenges is inventory. Homes for sale did see a 14.9% year-over-year increase—the highest in quite some time. But here's the twist—inventory actually dropped 13.5% from December to January. That seasonal swing is really shaping the market dynamics right now.

Companion Claire

Wait, so it’s up over the year but down month to month? How does that even work?

Brian Moran

It’s actually pretty common. December typically sees a slowdown because of the holidays. But on a yearly basis, we’re up 16.2% in inventory. That tells us more homes are entering the market compared to this time last year. And that’s good news for buyers—it eases competition, at least a little bit.

Companion Claire

But... does it really? I mean, does having more inventory actually make it easier to find something affordable, or are those just, like... bigger price tags flooding the market?

Brian Moran

Great question. Unfortunately, a lot of that inventory growth is getting eaten up by higher price points. Plus, regional discrepancies make it a mixed bag. For example, the Midwest experienced a drop in sales, bucking the national trend. Northeast Ohio is caught in this middle ground—inventory is higher, but affordable homes? Still tough to come by.

Companion Claire

Ah, so basically, it’s like, “Here’s more homes—just kidding, you can’t afford them!”

Brian Moran

To some degree, yes. But let’s not forget about the condo and townhouse market. Those listings actually grew by 8.6%. And that shift is interesting because it points to changing buyer preferences—urban housing is taking center stage, especially with affordability concerns pushing people toward smaller or attached housing options.

Companion Claire

Oh wow, so condos are really starting to, like, pick up the slack in certain areas?

Brian Moran

Exactly. And in places like Northeast Ohio, where urban redevelopment is finally gaining traction, it’s opening up opportunities. Townhouses and condos can offer a more affordable alternative without sacrificing proximity to amenities. But again, it’s not without its challenges—demand is rising, and with that, prices are too.

Companion Claire

Always that trade-off, huh? More options, but still not exactly easy. Honestly, the whole dynamic’s fascinating, though. It’s like watching the chessboard move in real time.

Chapter 3

Affordability and Changing Buyer Preferences

Brian Moran

You’re absolutely right—it really is like watching the chessboard move. And affordability? Well, that’s where today’s toughest moves are playing out. The housing affordability index just dropped by 13.1% to 153 in January. What does that mean in real terms? Fewer middle-class buyers can now qualify for the median-priced home here in Northeast Ohio. Their purchasing power? It’s taken a real hit.

Companion Claire

Oof, yeah, that’s a gut punch. I mean, there’s a lot packed into that number, right? And it’s not just about wanting a house anymore, but being able to survive after buying it.

Brian Moran

Exactly. Rising interest rates and climbing home prices only compound the issue. And speaking of prices, let's break that down. Single-family homes saw a price jump of 10.3% annually, while condos are just slightly behind at 9.5%. While that increase in condo prices might seem modest compared to houses, it’s still significant. This dynamic reflects two things: increasing demand and shifting buyer preferences.

Companion Claire

Wait—so people are leaning more toward condos now? Is that the “make it work” option for folks who can’t afford single-family homes?

Brian Moran

In some cases, yes. Condos and townhouses are offering a middle ground—more affordable price points and smaller spaces that buyers can still call their own. However, there’s a trade-off. Demand is driving up prices here too, and condos in particular are staying on the market longer. Days on market for condos increased by 22.2% compared to last year. That tells us some buyers are drawn to these properties, but others might still hesitate, weighing their options or dealing with tighter budgets.

Companion Claire

Yeah, like, people wanna get in but can’t quite pull the trigger. Or maybe waiting for prices to chill out?

Brian Moran

Could be. It also shows how resilient the Northeast Ohio market is despite these national trends. Even with rising prices, buyers are adapting—and choosing properties that fit their situations better, whether that means delaying their purchase or shifting toward attached housing options. We’re watching priorities shift in real time.

Companion Claire

It’s almost like a game of musical chairs—except the music’s speeding up, and the chairs keep getting pricier and fewer.

Brian Moran

That’s a great analogy. And ultimately, as affordability becomes the defining challenge for this cycle, we’ll likely continue to see creative solutions emerge from buyers, sellers, and the market itself.

Companion Claire

It’s wild to think about. I mean, there’s such a push and pull here—dreams versus reality. But hey, that’s housing, right?

Brian Moran

Exactly. And that’s where market dynamics really come to life, capturing not just numbers but the stories behind them. It’s what makes this industry so fascinating—and so complex.

Companion Claire

Well, on that note, I think we’ve covered a lot today! Definitely some food for thought for anyone house hunting—now or in the near future. Thanks for all the insight, Brian.

Brian Moran

Always a pleasure, Claire. And for our listeners, thanks for tuning in. Remember, markets fluctuate, but staying informed is your greatest asset. Until next time!

About the podcast

Join Brian Moran as he breaks down the latest real estate trends in Northeast Ohio, including rising home prices, growing inventory, and shifting market conditions. Whether you're buying, selling, or just watching the market, this episode has the insights you need!

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