The national housing market is showing positive improvement, and so is the housing market in the greater Cleveland West area. The main trend to call attention to is the seller’s market. Home prices continue to rise steadily above year-ago levels, and housing demand has strongly picked up, resulting in low levels of inventory in many regions across the country.
Tight inventory is a major factor in the market. Buyer traffic is continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40% above a year ago.
The typical home is selling nearly four weeks faster than it did a year ago. Now marks one of the most favorable times in market history to buy or sell a home. There is an urgency to buy now while mortgage rates are at record lows and before home prices increase more significantly.
Home Prices The current median home price fell slightly this month to $173,600, but it is still 12.3% above year-ago prices, marking January as the eleventh consecutive month of year-over-year price increases, which last occurred from July 2005 to May 2006. The increase in the median home price this month over January 2012 is the strongest year-over-year gain since November 2005.
Housing Inventory fell again this month to 1.74 million existing homes for sale, representing a 4.2-month supply-the lowest housing supply since April 2005, especially in the Westlake, Ohio community. When inventory supply is below 6 months, the market is said to favor sellers. This level of supply has not been seen since 2005 offering some of the best opportunity sellers have seen in years.