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.
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 increaseâ2.2% 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 wonderâwhat 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 priceâthat's bananas for a lot of people. Letâs be real here. Ohio canât 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. Thatâs pulling a lot of first-time buyers out of the market. Theyâre stuck competing not just with other buyers but with investors who see these homes as a safe bet.
Companion Claire
Ugh, and thatâs gotta be so frustrating if youâre like, "Hey, this is my chance to get a house," and suddenly... itâs not.
Brian Moran
Exactly. And think about thisârising prices are coupled with inventory changes. Fewer affordable options are even making it onto the market, creating this perfect storm. Weâll get into that more with housing supply numbers, but suffice it to say, many buyers are starting to feel boxed out.
Companion Claire
Rightâlike itâs a lose-lose situation. Youâve got prices climbing, options dwindling. Itâs just... itâs a mess.
Brian Moran
And all of this ties back to a deeper trendâhow low housing supplies post-pandemic are still impacting prices, competition, and affordability. For prospective buyers, itâs a lot to digest.
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 increaseâthe highest in quite some time. But here's the twistâinventory actually dropped 13.5% from December to January. That seasonal swing is really shaping the market dynamics right now.
Companion Claire
Wait, so itâs up over the year but down month to month? How does that even work?
Brian Moran
Itâs actually pretty common. December typically sees a slowdown because of the holidays. But on a yearly basis, weâre up 16.2% in inventory. That tells us more homes are entering the market compared to this time last year. And thatâs good news for buyersâit 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 groundâinventory is higher, but affordable homes? Still tough to come by.
Companion Claire
Ah, so basically, itâs like, âHereâs more homesâjust kidding, you canât afford them!â
Brian Moran
To some degree, yes. But letâs 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 preferencesâurban 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, itâs opening up opportunities. Townhouses and condos can offer a more affordable alternative without sacrificing proximity to amenities. But again, itâs not without its challengesâdemand 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 dynamicâs fascinating, though. Itâs like watching the chessboard move in real time.
Brian Moran
Youâre absolutely rightâit really is like watching the chessboard move. And affordability? Well, thatâs where todayâs 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? Itâs taken a real hit.
Companion Claire
Oof, yeah, thatâs a gut punch. I mean, thereâs a lot packed into that number, right? And itâs 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, itâs still significant. This dynamic reflects two things: increasing demand and shifting buyer preferences.
Companion Claire
Waitâso people are leaning more toward condos now? Is that the âmake it workâ option for folks who canât afford single-family homes?
Brian Moran
In some cases, yes. Condos and townhouses are offering a middle groundâmore affordable price points and smaller spaces that buyers can still call their own. However, thereâs 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 canât 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 adaptingâand choosing properties that fit their situations better, whether that means delaying their purchase or shifting toward attached housing options. Weâre watching priorities shift in real time.
Companion Claire
Itâs almost like a game of musical chairsâexcept the musicâs speeding up, and the chairs keep getting pricier and fewer.
Brian Moran
Thatâs a great analogy. And ultimately, as affordability becomes the defining challenge for this cycle, weâll likely continue to see creative solutions emerge from buyers, sellers, and the market itself.
Companion Claire
Itâs wild to think about. I mean, thereâs such a push and pull hereâdreams versus reality. But hey, thatâs housing, right?
Brian Moran
Exactly. And thatâs where market dynamics really come to life, capturing not just numbers but the stories behind them. Itâs what makes this industry so fascinatingâand so complex.
Companion Claire
Well, on that note, I think weâve covered a lot today! Definitely some food for thought for anyone house huntingânow 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!
Chapters (3)
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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