Summer is about to be upon us here in Northeast Ohio and as usual, and as my expectations from prior editions of this article discussed, the real estate market is in a frenzy. While some areas of the country are still seeing stagnant growth or even a decline in median sale prices, northeast Ohio, and notably Medina County, have seen values again start to creep up to, and beyond the levels seen at this time twelve months ago. Properties are once again selling with short marketing times and well above list price and Buyers are once again bringing cash to the table to cover any appraisal shortage. If a marketable property has a “For Sale” sign in their yard, it is likely to change to “Sold” within days, or even hours at this point of the real estate season.
This all ties into our on-going discussion of a shortage of single- family housing inventory. Homes simply cannot be built fast enough to cover demand, and homeowners are quite hesitant to sell their existing home when they are locked into record low mortgages. This caused a very stagnant winter real estate market, however, I have begun to see signs that homeowners are adjusting to the new normal of 6-8% interest rates which is a good thing in my opinion.
I’ve done a larger share of refinance appraisals in relation to purchase appraisals in recent months, and again, values are remaining stable if not increasing year-over-year, even with interest rates being approximately twice what they were at this time last year. It is hard to say what the next few months and winter season will look like, however, I do suspect a strong remainder of the summer real estate market, and likely a more stable fall and winter market in relation to a year prior as consumers further adjust to increased lending rates.
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This is a little bit of what you can expect when you order an appraisal with Velardo Appraisal Group:
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