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I was talking to
a client this morning and they think that the real estate market is a
buyers market. I would say this is simply a different market than we
have ever seen before. I found this article at https://propertyonion.com/education/ohio-housing-market-predictions-for-2023/
"Demand for homes in most of the greater-Cleveland area remains strong,
partly the result of insufficient inventory. The housing inventory
equates to merely 1.3 months, well below the 5 or 6-month level
traditionally associated with
a healthy real estate market. Simply put, the months’ supply refers to
the length of time (months) it would take to deplete the existing homes
for sale in a given market"
1.3
Months and 6 months are needed. The real estate market will probably
not crash at all. In fact in Cleveland Ohio it will probably go up at a
2-3% pace.
"
The short supply of available homes in the Cleveland area was further
exacerbated in late 2022 amid escalating interest rates. This should
come as no surprise, as existing property owners with a mortgage at 3 or
4% lack the motivation to sell and face rates of 6 or 7% in their next
home."
This
is another issue that is creating an inventory shortage. People like
where they live and their mortgage payment. With inflation and interest
rates heading north it will continue to be an issue.
The
other issue is new medium priced homes being built. In 2008-2016
basically no new medium priced homes were built. This is also another
reason for the shortage.
"
Many local real estate professionals suggest that investors should look at Cleveland in 2023, as the market
should increasingly favor buyers more than sellers. Within the city
limits, renters occupy more than half of the housing units; therefore,
strong demand exists for rental units — particularly in the
single-family rental home market."
This
is the silver lining so to speak, rents will be a stronger market. That
is where I come in. I find great real estate for my investors and do
all the detailed work until it's at the property manager (Avalon Group
Realty). My clients get updates and progress on their property through
the process.
Buying real estate for investment today is very smart! Don't wait
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Thank you