February 2025 Real Estate Update

Cassidy Closing

Welcome to this month’s edition of the Northeast Ohio Real Estate Market Update! I’m so excited to dive into these new stats—

Brian Moran

And the February 2025 data just came out, so there’s plenty to unpack.

Cassidy Closing

Exactly! For anyone who’s tuning in for the first time, this is our monthly podcast where we break down the latest trends in the real estate market, both nationally and here in Northeast Ohio. And let me just say—February saw some really interesting shifts.

Brian Moran

Yeah, we always talk about how quickly this market evolves. It’s like a living, breathing thing, and each month brings new surprises. The data we’ll discuss today reflects both national trends and some unique dynamics in our region, particularly in single-family homes.

Cassidy Closing

Right. So whether you’re looking to buy, sell, or just love keeping tabs on the market like we do, you’re in the right place.

Brian Moran

Exactly. You’ll hear us dive into inventory levels, sales patterns, median prices—and what this all means for buyers and sellers. And honestly, it’s not just about the numbers; it’s about the stories those numbers tell.

Cassidy Closing

And the Northeast Ohio market? It’s been—how should I put this? On a bit of a rollercoaster, especially compared to last year.

Brian Moran

You’re not wrong. From what I’ve seen, this February’s figures point to an intriguing mix of challenges and opportunities ahead. It’s all part of an ever-changing market.

Cassidy Closing

And that’s why I love these discussions! So, let’s get into it. First up—

Brian Moran

Alright, let’s dive right into sales trends. In February, closed sales in Northeast Ohio were down 5.7% compared to the same time last year. Now, while that might seem pretty notable, it’s important to consider this could largely be due to seasonal adjustments.

Cassidy Closing

Wait, so you’re saying it’s not necessarily a sign of, like, a major slowdown?

Brian Moran

Not necessarily. Seasonal patterns are common, especially in real estate markets with colder winters. But here’s the thing—pending sales dropped by 27.2%, which is a much steeper decline. That’s more indicative of, well, a potential longer-term adjustment. Fewer homes are going under contract, and that tends to impact closed sales a couple of months down the line.

Cassidy Closing

So less activity at the front end is kind of a red flag for what’s coming next?

Brian Moran

Exactly. And then we look at the average days on market, which increased to 56 days. That’s up 7.7% from last year. For buyers, it means they’ve got more time to make decisions, negotiate, and even get creative with their offers in some cases.

Cassidy Closing

And for sellers?

Brian Moran

For sellers… it means they need to be more strategic. Pricing their homes properly becomes crucial because buyers are paying more attention to value. Gone are the days of multiple offers within hours. I mean, the market is clearly still active, but it’s not as… how should I say it? Frenzied?

Cassidy Closing

Right, and that creates a whole different vibe.

Brian Moran

Exactly. And a lot of it ties back to broader economic conditions: interest rates are still elevated, affordability is a challenge, and, honestly, buyer sentiment isn’t quite what it was. But we also can’t ignore the impact of rising inventory levels, which have been a huge factor in shifting those dynamics.

Cassidy Closing

Okay, so sales are slowing, homes are sitting longer, and buyers have a little more power right now. But what’s driving that rise in inventory in the first place?

Brian Moran

That’s a great question, Cassidy. Inventory in Northeast Ohio has jumped quite a bit—14.3% compared to last year. We’re looking at 6,712 homes on the market, which is the most we’ve seen for February in years.

Cassidy Closing

Whoa, that’s a huge leap! So, what’s causing this? Is it just… sellers jumping in?

Brian Moran

Not exactly. New listings are actually down 11.4% year-over-year. The higher inventory comes from homes simply taking longer to sell. Buyers aren’t snatching them up as quickly, so the supply starts to accumulate.

Cassidy Closing

Ah, okay. So it’s like a backlog?

Brian Moran

Precisely. And here’s where it gets interesting—the median sales price has still gone up, hitting $207,750. That’s a 7.6% increase, even with more inventory on the market.

Cassidy Closing

Wait, what? Prices are going up, even though more homes are sticking around?

Brian Moran

Yep, it sounds counterintuitive, but it ties back to that ongoing demand. Even as buyers take longer to make decisions, there’s still enough market pressure to push prices higher—albeit at a slower pace than before.

Cassidy Closing

So, is this like, a Northeast Ohio thing? Or does this echo what’s happening across the country?

Brian Moran

There are definitely parallels. Nationally, inventory is up as well—3.5% from January and 16.8% from last year. But our local increase is, well, more pronounced. It’s reflective of a region that hasn’t adjusted as quickly to the cooling in buyer activity. Plus, local prices are still far below the national median of $396,900, so there’s room for appreciation here that some other markets might not have.

Cassidy Closing

Got it. So if you’re a buyer, this sounds like kind of a sweet spot—you’ve got more options, but the market hasn’t totally shifted yet. What’s the move here?

Brian Moran

Exactly. Buyers looking to take advantage of this moment should focus on finding properties that have been sitting a bit longer. Negotiation opportunities are better now, especially with some sellers recognizing they need to be flexible on price. It’s also a good time to be strategic—choose homes where the price aligns with value. And don’t be afraid to ask for concessions; that’s becoming slightly more common again.

Cassidy Closing

So, it’s all about playing it smart and really knowing your numbers?

Brian Moran

Absolutely. It’s a shift from the frantic pace we’ve seen in the past couple of years. Buyers have a chance to think more deliberately. But at the same time, with prices still rising, it’s important not to wait too long either—it’s all about finding that balance.

Cassidy Closing

Right, and I imagine sellers are finding themselves in a balancing act, too. If things aren’t flying off the market anymore, that’s gotta change how they approach, like, practically everything.

Brian Moran

It does, and it starts with pricing. Overpricing right now can be an instant dealbreaker because buyers are becoming more cautious. Staging and presentation are also critical—homes need to stand out more than ever, given the rising competition. And for some sellers, offering incentives like covering closing costs could be the difference between selling quickly and sitting for months.

Cassidy Closing

Wow, so it’s kinda like a game of strategy for everyone. Buyers being shrewd, sellers staying sharp—it feels like a chess match, honestly.

Brian Moran

That’s a good analogy. And right now, with all the moving pieces—inventory, prices, shifting dynamics—it really does feel like a game of strategy for both sides.

Cassidy Closing

Speaking of strategy, Brian, here’s something that caught my eye. The Housing Affordability Index has fallen again, down 7.5% to 148. What does that mean for buyers who are already stretching their budgets?

Brian Moran

Yeah, affordability is becoming a bigger challenge, especially for first-time buyers and lower-income households. A lower Housing Affordability Index indicates that, on average, people are spending a larger portion of their income to afford homes. And with home prices still climbing, even at a slower rate, it’s creating extra pressure.

Cassidy Closing

So we're talking higher prices and higher interest rates—basically a double whammy?

Brian Moran

Exactly. And throw in rising utility costs in some areas, and the overall cost of homeownership is becoming harder to manage. That said, the slight increase in inventory is giving buyers some breathing room, so it's not all doom and gloom. There are strategies to offset these challenges.

Cassidy Closing

Alright, I have to ask—how do you navigate this if you're a first-time buyer trying to make it work in this market?

Brian Moran

Well, first, it’s about understanding what you can truly afford. Buyers need to do their homework—know your numbers and stick to them. Tools like generative AI can help here; for example, platforms are now using AI to personalize property searches based on your budget, preferences, and even upcoming market trends. It’s all about efficiency—finding homes that fit your criteria without wasting time.

Cassidy Closing

Wait, you're saying AI tools can actually help with affordability?

Brian Moran

In a way, yes. Some tools can analyze things like price trends in specific neighborhoods or forecast how changes in mortgage rates will impact affordability. For buyers, particularly those entering the market for the first time, having access to that kind of data can empower their negotiations and decision-making. It’s like having a virtual advisor that’s crunching numbers for you in real time.

Cassidy Closing

That’s so wild! So tech is kind of stepping in to level the playing field, yeah?

Brian Moran

It is. We’re seeing more buyers use AI-driven platforms to explore creative options—like targeting homes that have been on the market longer or investigating areas with price drops. These tools don’t replace agents, but they definitely help buyers feel more confident before they even step into a house.

Cassidy Closing

And for sellers, what’s their play in this more “balanced” market?

Brian Moran

Well, sellers are still in a favorable spot, but it’s not a free-for-all anymore. Pricing homes competitively is crucial, and so is making those homes stand out. Generative AI tools are helping here, too, by creating detailed virtual tours or staging mock-ups that showcase a home’s potential to sell faster.

Cassidy Closing

Wow, so basically, everyone needs to be strategic—and maybe a little tech-savvy, too.

Brian Moran

Exactly, it’s about recognizing that the market is leveling out but still moving. Buyers and sellers both need to adapt to these shifts—buyers by being informed, and sellers by being realistic while staying proactive. The key is to think longer-term rather than just reacting to short-term changes.

Cassidy Closing

On that note, I think we’ve covered a lot of ground today. From affordability challenges to, honestly, how tech is changing the game—it’s a lot, but it’s totally fascinating.

Brian Moran

It really is. The market’s always evolving, and this moment feels like we’re at a crossroads—where data, strategy, and technology are all coming together to reshape how people buy and sell. It’s exciting to watch—and even more exciting to be part of it.

Cassidy Closing

It really is. And with that, I think it’s time to wrap up. Thanks for tuning in, everyone! We hope you found this as insightful as we did.

Brian Moran

Absolutely. If you’ve got questions or wanna dive deeper into any of this, don’t hesitate to reach out. And we’ll see you next time!

Cassidy Closing

On that note—bye for now, and happy house hunting!